IS GST APPLY WHEN GOODS SENT TO JOB WORKER???

-
What is Job Work????   
Section 2(68) of GST Act,
  • Any Treatment or process
  • Undertaken by a Person
  • on Goods
  • Belonging to another registered person
Important Points From Defination:

  1. Ownership of goods doesnot belong to Job worker
  2. Job worker will carry out only that process/treatment as specified by the Principal.

TAKING OF CREDIT:
Section 19 of CGST Act,
Principal entitled to take credit of input(Raw Material)
if such input is sent to job worker
and also even when such raw material directly sent to job worker without bringing raw material to the premises of principal.


SENDING GOODS TO JOB WORKER:
Section 143 of CGST Act, Taxable goods sends to job worker without payment of tax only if certain terms and conditions to be satisfied.

  • Intimation letter shall be sent by principal manufacturer to the E-mail ID of the Jurisdictional officer which is available on the common portal. 
  • Such letter shall be sent before removal of goods. 
  • The physical copy of the letter can also be submitted to the regional GST Suvidha Centre before removal of goods.  


CONTENT OF INTIMATION LETTER:

  • Description of input
  • Nature of Processing to be carried out by job worker
  • If Processed inputs are sent from One job worker to another job worker- the letter shall indicate the name and address of another job worker.
  • Capital Goods: Letter contain description of capital goods and its use on processing of raw material carried out by job worker.




Comments

Post a Comment

Popular posts from this blog

INTEREST ON "Housing Loan VS Loan Against Property" + Tax Planning/Benefits.

-
Loan Against Property(LAP)  1. LAP is a loan which is given against the property. 2. Its is a secured loan where your property whether residential or commercial property is                        MORTGAGED and you get loan against it. 3. Here person already owns a property and he is taking loan against it. 4. Usage of loan can be for any other purpose as the borrower wishes. 5. Lending limit is usually 50% to 60% of the market value of the property.           Hence there is no upper limit of LAP, usually personal loans wont go beyond 10 to 15 Lacs. 6.  Interest on LAP : As the loan is already secured, hence the interest rates on LAP is usually on          the  lower side as compared to the personal loan. 7. TAX BENEFITS : As the borrower has mortgage his property hence NO TAX  BENEFITS           under section 80C and Se...
Read more

GST E WAY BILL- PART 2 GENERATION OF E WAY BILL

-
GENERATION OF E-WAY BILL: 1. PART A OF EWB- If Value of Goods> 50,000.,.then this part to be furnish by the person who is causing movement of goods 2. PART B OF EWB- It is to be furnish(fill) by person who causes movement of goods i.e sender/reciever when they are transporting on their own behalf.  GENERATION OF E WAY BILL BY TRANSPORTER THIS HAPPENS Only when E way bill not generated by Sender. BUT still in this case also Sender(i.e registered person) have to fill part A & B of EWB. After receiving goods transporter generate EWB on the basis of part A & Part B of EWB. AUTO POPULATED E-WAY BILL Registered person issued Invoice in GST INV-1  upload invoice on common portal generate Invoice Reference No. and same no. is valid for 30 days Here in this case no need to fill part A of EWB.,.it is auto populated on Common portal on the basis of GST INV 1 Then E way bill Number is generated and same shall be made available to sender/reciever/trans...
Read more

IS GST APPLY WHEN SUBSIDY IS LINKED TO SUPPLY/PRICE???

-
Section 15 of CGST Act, specifically provides that TRANSACTION VALUE   SHALL INCLUDE items which are specified in Clauses (a) to (e) Clause (e) : describes subsidy provided in any form or manner                     linked to the supply (Excluding Government Subsidy)                     will also be included in Transaction Value. Here in this clause: nothing is mentioned about who is providing the subsidy. Hence,subsidy provided  by any Person in any FORM             it shall also be included in transaction value. IMPORTANT POINT IS: Subsidy shud be directly linked to the price. EXAMPLE 1 : What about Gas Subsidy as such subsidy is also related to supply of GAS                                       CYLINDERS?? The company is making...
Read more