TMI BlogInvoice to be issued during job workX X X X Extracts X X X X X X X X Extracts X X X X ..... In a job work process The principal has authorised the job worker to take delivery of the goods but the principal will receive the INVOICES AND TAKE THE ITC the principal has also authorised the job worker for disposal of the scraps The principal will take a portion of scrap value. my question is whether the Principal will raise any invoice for the value to be received and pass on the ITC. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ANY CIRCULAR OR INSTRUCTION IF ISSUED KINDLY SHARE - Reply By KASTURI SETHI - The Reply = Sh.Tirpathy Ji, Pl. go through this circular. Job work - Issues related to job work under CGST Act, 2017 - Clarification Circular No. 38/12/2018, dated 26-3-2018 - Reply By Bibhu Tripathy - The Reply = Thank you sir for the reply. But the circular speaks of taking the ITC by the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncipal. when the scraps are cleared by the Job worker which regd. nd the principal has not declared the premises of the job worker as his additional place of business, the gst us paid by the job worker. Whether the principal will raise any invoice to job worker certain amount paid by job worker to the principal as scrap credit. - Reply By KASTURI SETHI - The Reply = Circular dated 26.3.18 sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds amended. Changes in Board s circulars consequent upon amendments to the GST Acts effective from 1-2-2019 C.B.I. C. Circular No. 88/07/2019-GST, dated 1-2-2019 - Reply By KASTURI SETHI - The Reply = It is undisputed fact that principal is the owner of goods and he is also owner of scrap. The principal is responsible for discharging GST on finished goods. The department is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned with proper and correct payment of GST. Delivery challan meant for job-work means goods have not been sold and this challan is for movement of goods on road without selling the same whereas 'invoice issued' means goods sold. Hence the principal being the owner of job-worked goods can raise invoice. He can also sell scap to any person. The job-worker can purchase scrap from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principal. There are are more circulars on job-work and go through all circulars. If you have any cross query, post here again. - Reply By KASTURI SETHI - The Reply = As per proviso (i) to Section 143(1) (b) , the premises of job-worker are required to be declared as additional place of business by the principal, if the job worker is unregistered. - Reply By KASTURI SETHI - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regarding scrap, as per Section (143)(5) of CGST Act if the job worker is registered, the job worker can clear/supply/sell the waste and scrap on his invoice on payment of GST and if the job worker is unregistered , waste and scrap has to be returned to the principal (owner). The principal is also owner of scrap generated during the process undertaken by the job worker. - Reply By Bibhu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tripathy - The Reply = Thank you sir. My queries which request is: The Job worker's place is not the additional place of business of the principal. The Job worker is registered. The Principal in his agreement has empowered the job worker to sale the scraps. The job worker has sold the goods. The job worker paid a portion of sale proceeds to the Principal. Under such circumstances , Can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Principal raise any invoice to the job worker when the job workers premises has not been declared as his additional place of business? - Reply By KASTURI SETHI - The Reply = In my view, yes. The job worker always works for and on behalf of the principal (owner). The job worker can be termed as 'agent' ( used for clarity)The legal status of the job-worker acting as for and on behal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f is not lost whether it is pre-GST era or GST regime. - Reply By Himansu Sekhar - The Reply = I have little confusion 1. As per proviso to Sub sec. 1 of sec 143 the principal can only clear the goods from the premises of job worker if it is the additional place of business. As per the query this does not happen here 2. The clearance of scrap is provided under sub sec. 5 which begins w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith not withstanding the provisions contained in sub sec 1 and 2. The job worker can clear the goods if he is regd. Or principal may clear the goods if job worker is not regd. If the goods are supplied at the premises of job worker to the job worker, the place of job worker should have been declared as additional place - Reply By KASTURI SETHI - The Reply = Sh.Himanshu Sekhar Ji, I agree wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h your views at serial no.9 dated 18.3.21. As per Section 143(1) of CGST Act , the principal has to declare the premises of another job-worker as additional place of business, if that job worker is unregistered. Although first job-worker sends the inputs/semi-finished goods to another job-worker by way of endorsing the delivery challan, yet it is the responsibility of the principal. It is cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under Section 143(1) of CGST Act . - Reply By Himansu Sekhar - The Reply = yes sir. - Invoice to be issued during job work - Query Started By: - Bibhu Tripathy Dated:- 17-3-2021 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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