gst on job work of same companies having 2 unit interstate

[Asked by Guest]

hello

we have 2 units. main unit is in karnataka and another unit is A.P.both are own by one company.

unit in karnataka sends cut pcs of shirt to unit in A.P. for sewing. unit in A.P. after sewing sends shirts back to unit in karnataka who will do washing and packing and export.

is there any gst liablity when unit in A.P. sends shirts after sewing

[Rajagopalan Ranganathan]

Sir,

Please go through Section 143 of CGST Act, 2017 and rule 45 of CGST rules, 2017 for detailed procedure.

[KASTURI SETHI]

Activity is taxable. IGST is applicable. ITC is available.

[subramanian vijayakumar]

There is no inter state stock transfer under GST

IT is inter state sales​ IGST IS PAYABLE AND THEY ARE ELIGIBLE FOR ITC AND CAN ST OFF AGAINST IGST AND CGST

[rajkumar shukla]

it is inter state supply of goods hence igst applicable.

[Ganeshan Kalyani]

As per Job work provision, the material sent to job worker and received back with a year then GST is not applicable on material part. GST is anyway applicable on the job work charges. In that IGST is applicable as opined by the experts collegue.

AI Summary

IGST applicability on inter state job work charges, with input tax credit available and material exempt if returned within the prescribed period.
Movement of goods between company units across state borders for processing is treated as an inter state supply attracting IGST on the taxable component, with input tax credit available where eligible. Under job work provisions, raw material sent to a job worker and returned within the prescribed period is not treated as a taxable supply of the material, but job work charges are taxable; compliance with procedural rules is necessary to preserve exemptions and ITC.