gst on raw material of job worker

[pawan singhal]

can a job worker take ITC credit of raw material in transitioanal provision which he purchased for job work purpose. for example a yarn dying company which are doing job work of yarn . for doing job work of yarn it is also purchased colour and chemical. so can yarn dyeing take deemed credit of GST as per TRANSITION PROVISION of closing stock of chemical on 30th June 2017. chemical gst rate is 18% .

[Nandan Khambete]

Section 2(68) of the CGST Act, 2017 defines job-work as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. The one who does the said job would be termed as ‘job worker’. The ownership of the goods does not transfer to the job-worker but it rests with the principal.

The above case mentioned by you will not get covered under Job Work.

[Himansu Sekhar]

Yes, in gst regime you will be registered . the closing stock will be your inputs. Provided you fulfill other conditions of section 140

[KIRTIKUMAR PUROHIT]

As per my opinion Yes; If Job worker is Register than GST available because Input in stock will be utilized in processing its considered input utilization in terms of furtherance of business.

[Nash Industries I Pvt Ltd]

ITC is available as long as it is used in the course of furtherance of business and the output tax is payable

Regards

S.Ramaswamy

AI Summary

Input tax credit eligibility for job workers under transitional provisions when registered and inputs are used in business. Whether a job worker may claim input tax credit on consumable raw materials and chemicals under the GST transitional provisions depends on registration and ownership: job work is defined as processing goods belonging to another, so ownership remains with the principal, but where the job worker is registered and the items are held as inputs in closing stock under the transitional provision they may qualify for deemed credit, provided the inputs are used in furtherance of business and the output attracts tax.