TMI Blog2019 (11) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... per the required design and supervision of the engineers of the applicant - HELD THAT:- As per Section 143 of the CGST/SGST Act, 2017; the registered principal may, without payment of tax, send inputs or capital goods to a job worker for job work and, if required, from there subsequently to another job worker and so on. Subsequently, on completion of the job work, the principal shall either bring back the goods to his place of business or supply the same directly from the place of business / premises of the job worker within one year in case of inputs or within three years in case of capital goods. Documents or formats to be maintained by the applicant under GST laws - transfer of raw materials to the job work unit - processing and retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicable rate. The job worker shall issue an invoice at the time of supply of the services determined in terms of Section 13 read with Section 31 of the CGST/SGST Act. The value of services would be determined in terms of Section 15 of the CGST/SGST Act and-would include not only the service charges but also the value of any goods or services used by him for supplying the job work services. The use of own goods by the job worker in addition to the goods supplied by the principal for job work will not change the nature of the activity and will have no bearing on the rate of GST applicable for the job worker. Is there any tax liability on the applicant under GST laws on the value of the scrap held with the job work unit? - HELD TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant under GST laws to transfer the raw materials to the job work unit and also the documents to be maintained after the processing and return of finished goods from the job work unit to the applicant or despatch of finished goods from the job work unit directly to the destination of the applicant s customers? iv) In case consumables like paints, primers and consumable spares like locking ring are arranged by the job work unit, is there any change on the rate of tax under GST taw on such job works provided by the job work unit? (In this case, the consumables which are estimated at less than 9% of the total cost of raw materials are arranged by the job work unit and the said 9% of the estimated cost of consumables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is free to dispose the scrap and applicant is not claiming any case on such scrap. The matter was examined in detail. Section 2(68) of the CGST/SGST Act, 2017 defines job work as any treatment or process undertaken by a person on goods belonging to another registered person . The person who does the job work is termed as job worker . The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods. Sending goods for job work is not a supply as such, but it acquires the character of supply only when the inputs sent for job work are neither received back by the principal nor supplied further by the principa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Is there any restriction in GST laws to supply raw materials to the job work unit and get the finished goods to the applicant from the job work unit as per the required design and supervision of the engineers of the applicant and what will be the rate of tax under GST law for the above works chargeable by the service provider? As per Section 143 of the CGST/SGST Act, 2017; the registered principal may, without payment of tax, send inputs or capital goods to a job worker for job work and, if required, from there subsequently to another job worker and so on. Subsequently, on completion of the job work, the principal shall either bring back the goods to his place of business or supply the same directly from the place of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rter furnishing the details of the goods sent for job work. iv) in case consumables like paints primers and consumable spares like locking ring are arranged by the job work unit, is there any change on the rate of tax under GST low on such job works provided by the job work unit? (in this case, the consumables which are estimated at less than 9% of the total cost of raw materials are arranged by the job work unit and the said 9% of the estimated cost of consumables is going to be added to the job works charges). The job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work. The job worker, as a supplier of services, is liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
