GST on Job Work charges raw material supplied before appointed date

[SHAHID HASHMI]

Whether Job Work Charges will attract GST on supply of Job Work Services by the Job Worker for Job Work in the GST regime on raw material / process goods supplied to Job Woker before the appointed date or before GST applicable date by the Principal.

[Himansu Sekhar]

If the job work done post gst then gst is applicable on job work charges

[Himansu Sekhar]

Raw material supplied earlier has no bearing on job work.

[SHAHID HASHMI]

Thanks for you reply. but Section 141 says that Where any inputs received at a place of business had been removed as such or removed after being partially processed to job worker for further processing, testing, repair reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the day job work or otherwise, are returned to the said place within six months from the appointed day.

please guide the meaning of " no tax shall be payable if such"

[rajkumar shukla]

In my view this rules talks about gst on goods so supplied for job work but not for gston the services of job work. so gst on jobwork charges will be payable but not on goods supplied by the principal.

[rajkumar shukla]

Kindly read section in place of rule in my reply.The second proviso to this section lends credence to my views wherein it has been prescribed that if goods are not returned within the specified period , input tax credit shall be recovered. so obviously it has to be input tax credit that must have been taken on the goods so supplied.

[Himansu Sekhar]

If the goods will not be returned, within six months, then it will be treated as a supply. The provisions are specifically to determine the supply of goods. Regardinbg the services provided to the job worker after the appointed date, gst will be leviable. In the existing law, the same was charged service tax when the process was not amounting to manufacture.

[KIRTIKUMAR PUROHIT]

I AGREE WITH HIMNASUJI VIEW; aFTER APPOINTED date whatever material held with Job worker its not laiable to GST till 180 day as per previous law and that stock shown in TRANS-1 if not return withn stipulated time than GST will attract.

[Nash Industries I Pvt Ltd]

The goods sent for job work under the pre-gst regime and received back (under gst) after processing within six months, no gst is liable as per the transitional provision, If the goods are returned after six months, then gst is payable an credit can be availed on the same.

Regards

S.Ramaswamy

[Himansu Sekhar]

Thank you purohitji for accepting my view. If the requirement of the querist is answered, the service of job work and the goods are different things.

[Krishnan C]

Our job work charges are not taxable in pre GST regime due to it amounting to manufacture.

Whether it is taxable in post regime for job work charged for material sent before appointed date.

[Nash Industries I Pvt Ltd]

pre gst - service tax was exempted if the process amounts to manufacture.

Under the GST - there is no such provision. It is supply of goods or supply of service.

GST is payable on supply of service. please refer FAQ released by CBEC.

Regards

S.Ramaswamy

[Krishnan C]

thank you for your reply Mr. S.Ramasamy.

AI Summary

GST on job work services remains taxable post-appointed day even if materials were supplied earlier; goods-return rules govern goods' taxability. GST is leviable on the supply of job work services performed after the appointed day irrespective of when inputs were supplied. Transitional rules exempt goods sent for job work before the appointed day if returned to the principal within the prescribed return period; goods not returned within that period are treated as a supply and attract GST or recovery of input tax credit. The earlier service-tax exemption for processes amounting to manufacture does not generally remove GST liability on post-appointed-day job work services.