CLEARANCE FROM VENDOR PLACE TO CUSTOMER

[SURYAKANT MITHBAVKAR]

We have registered under GST in Maharashtra State. We have cleared machine to our vendor ( situated in Hyderabad) for assembly purpose under challon 214/86 pre GST regime. Now our vendor is completed his assembly job and we have to clear the same machine to our customer (Situated in Hyderabad) form vendor place.

We will raise our Invoice in customer name with charging IGST and send it to our vendor for further despatch of material to our customer place. Vendor will provide transport document (LR) showing material despatch from Hyderabad to Hyderabad. (Since our vendor and customer is situated in same state)

Regarding Challon 214/86, our vendor will returned the challon duly fill up for assembled the material.

Is this procedure is correct undet GST or we have to follow any other procedure.

[RAMESH PRAJAPATI]

You have to declare this jobwork in GST Form TRAN-1, then you can avail the exemption.

AI Summary

Jobwork declaration under GST secures exemption for goods assembled by a vendor and forwarded to the customer; file the transitional form. The query concerns inter state jobwork where a registered principal sends a machine to an out of state vendor for assembly and the vendor then forwards the assembled machine to the customer in the same state as the vendor; the principal proposes to invoice the customer charging IGST and to obtain the pre GST challan returned by the vendor. The reply advises to treat the movement as jobwork and complete the transitional declaration in the prescribed GST form to avail the exemption.