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Question1: Please note that section 142(1) says that principal can remove job worked input without payment of GST.
Answer: Thanks for using Law crux GST in illustration of mail dated 10 October 17 same view point is followed goods are sent directly from the supplier to the job worker and billed to the principal there is no payment of GST by the principle but when goods are cleared after job work the job worker has to charge tax on job charges because it is a service as per Schedule ii Clause 3 of CGST Act Earlier the job work was covered under negative list of service tax and notification no 214 /86 of Central excise In case your view point is different please revert back to us (Reply dt. 11/10/2017)
Question2: If a dealer (Principal) intends to get Job work from a manufacturer (Job worker), whether he can do it or not ? as earlier in the erstwhile Central Excise Rules Dealer was not allowed. and what will be rate of GST on bulk drug falling under ch. 29.
Answer: Please note that the biggest change in law after introduction of GST is that manufacturer or dealer or depot or agent or service provider all are at same level. All these are covered under the term supplier. So any dealer whatever is the product he is dealing with can get job work done You have to check only the law otherwise applicable to the product like law relating to medicine license or permission under specific law to make medicine etc. (Reply dt. 09/11/2017)
Question3: We are the fabric manufacturer located in Maharashtra. We want to do some finishing of fabric at job worker place at Karnataka. Can we export/sale in domestic market directly from Karnataka on our tax invoice or is it must that we brought back physically to Maharashtra and then sale.
Answer: The goods can be directly sold or exported as the case may be from the place of Job worker Please see Section 143 as follow
Section 143: Job work procedure.
(1) A registered person (hereafter in this section referred to as the 'principal') may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job-work and from there subsequently send to another job worker and likewise, and shall,''
a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;
b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job-worker as his additional place of business except in a case'
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. The provision mentioned above are as on today .we expect some circular from the Government for detailed procecure the same will be applicable after they are issued. (Reply Dt. 26/12/2017)
Question4: I am a steel trader. I send goods for cutting in routine on challan. Being a trader, whether I have to file ITC 04
Answer: Please note that in GST the concept is supply is introduced so every one whether trader manufacturer or service provider all are at one platform you have to follow the job work procedure irrespective of the value of job work and nature of it. (Reply Dt. 29/12/2017)
M/s A (Principle Manufacturer) is registered under the GST law in the state of Haryana. It supplies goods to its job worker M/s B, located in Gujarat to carry out the job work process (inputs will be processed and Goods will be finally packed in different packs for direct sale to consumers).
Question5: The M/s B (job
worker) is registered under the GST law in the state of Gujarat.
M/s B receives such goods (INPUTS) at his registered place of business in
Gujarat from M/s A or directly from the suppliers of M/s A and carries out the
job work process.
Subsequently, as per the instructions received from M/s A Haryana branch, the
M/s. B send such processed goods to A’s customer or A’s another branch
registered under the GST law.
The M/s B also charges consideration for the services provided to M/s A Haryana.
In relation to the above, we request you to suggest the following:
Documentation requirement under the provisions of GST Law and
Applicability of e-waybill on each transaction
Answer:
Followings are the documentation requirements under GST Law:-
(i) Company A Ltd. in Haryana will dispatch its material to Job Worker in
Gujarat against Challan and E-way bill. Even when goods are directly supplied by
suppliers of A ltd to Job worker, even then A ltd will have to issue Challan and
E-way bill.
(ii) Job worker will have to issue an invoice for the job work charges as it is
a separate supply under GST.
(iii) The details of challans in respect of goods dispatched to a
job worker or received from a job worker or sent from one job worker to another
during a quarter shall be furnished in FORM GST ITC-04 by the Principal.
Applicability of e-waybill and
Invoice when Goods are sold/supplied from Job worker (B) Place
(i) On
instructions from A ltd. job worker in Gujarat on completion of job work will
dispatch the goods to buyer of A ltd, or to any branch of ALtd. having different
GSTN. job worked goods will be sent against Delivery Challan and E-way Bill.
(ii) Simultaneously A ltd shall raise Tax Invoice on the buyer of goods and
E-way Bill on
the same invoice to complete the transaction. In this manner consignment would
be accompanied with two E-way Bills i.e. one of the Job worker and the second of
supplier of goods (A Ltd).
(Reply dt. 02/4/2018)
Question 6: We send goods for job work
and we want to supply direct goods from the premises of Job Worker, is it
possible?
Answer
Yes, it is possible to send goods directly from
job worker premises but subject to following conditions as per proviso to
section 143(1) of CGST Act:
1. If the Principal declares the Premises of Job Worker as his additional place
of business, or
2. The job worker is registered, or
3. The principal is engaged in the supply of such goods as may be notified by
the Commissioner. (Reply dt. 06/08/2018)
Question
7: I had imported a machine
after paying Customs and IGSion on 4th july 2017. it was impoted from UK under
GST regime. Now this machinery has broken down and requires repair from UK
supplier
Now please guide me the procedure for sending it to repair under GST.please
quote the authority as well as documentary process required. please also tell
any prior permission from GST deptt is required.
Answer
For sending goods whether in India or out
side India you have to follow the job work procedure The same as applicable to
movement of goods(machine) for inter state
Sending of capital goods for repair covered under definition of job work The
same is defined in section 2(68) of CGST Act as follow
SECTION 2 OF CGST ACT
(68) 'job work' means any treatment or process undertaken by a person on goods
belonging to another registered person and the expression 'job worker' shall be
construed accordingly;
You have to follow the procedure define in custom (reply dt.
05/05/2018)