GOODS SENT FOR JOB WORK

[sachin shilamkar]

WE HAVE SENT SOME GOODS FOR JOB WORK IN THE MONTH OF AUGUST 16. WHILE SENDING THE GOODS WE HAVE ISSUED EXCISE GATE PASS AND PASSED ON DUTY TO THE JOB WORKER.

THE MATERIAL WILL BE RETURNED FROM JOB WORKER IN FEW DAYS. WHILE SENDING THE MATERIAL BACK JOB WORKER WILL SEND IT UNDER EXCISE GATE PASS WITH DUTY ON IT.

KINDLY LET US KNOW WHAT ARE THE PROVISIONS TO TAKE CREDIT OF THE DUTY UNDER EXCISE IF THE MATERIAL IS RETURNED BEFORE 30TH JUNE. AND WHAT ARE THE PROVISIONS UNDER GST IF THE GOODS RETURNED AFTER 1ST JULY.

[PAWAN KUMAR]

Dear Sir,

As per my view, since you cleared goods on payment of duty to your job worker. The job worker would have taken cenvat. Now the job worker if returned these to you on payment of duty, if it is received prior to GST, you may take cenvat.

In case it is received to you in Gst regime, since job worker alreday paid duty on such goods as per existing law, will be taken as refund of cenvat by revising return by 31july. Or you may follow section 140(5) of cgst.

AI Summary

Job work duty credit: cenvat allowed if goods return precedes GST; otherwise claim transitional adjustment or refund. If goods sent to a job worker under excise with duty paid are returned before GST commencement, the principal may take cenvat credit; if returned after GST commencement, the duty paid should be regularised via revising excise returns for cenvat refund or by following applicable transitional provisions to claim input tax credit or adjustment.