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% .

AI Summary

Can a Job Worker Claim Input Tax Credit on Raw Materials Under GST Section 140? A discussion on a forum addresses whether a job worker can claim Input Tax Credit (ITC) on raw materials under transitional provisions of GST. The query involves a yarn dyeing company purchasing chemicals for job work. One response clarifies that job work does not transfer ownership to the job worker, implying the situation may not qualify under job work provisions. Other responses suggest that if the job worker is registered and the materials are used in business operations, ITC could be claimed, provided conditions under Section 140 are met. The chemical GST rate is noted as 18%.