waste & scrap supplied by Job Worker

[Vinod Maheswari]

I have a query regarding section 143(5) which says

'Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered'

Now if Job worker is registered and if he is paying some consideration to principal for that waste and scrap than whether Principal is exempt from raising invoice to Job worker and can ask Job worker to supply waster and scrap and pay relevant tax according to section 143(5).(Its means it will be supply in Job worker account).

If answer is Yes than what about be treatment of consideration received by principal for such waste and scrap as section 7 says consideration received will be treated as supply .

Thanx

AI Summary

Debate on Section 143(5) of GST Act: Can job workers supply waste without principal's invoice? Circular No. 38/12/2018 cited. A discussion on a forum addresses the interpretation of Section 143(5) of the GST Act concerning the supply of waste and scrap generated during job work. The main query is whether a registered job worker can supply waste and scrap directly without the principal issuing an invoice, especially when the job worker pays consideration to the principal. Various participants debate whether the principal must issue an invoice, referencing Circular No. 38/12/2018 and the specific provisions of Section 143. The consensus remains unclear, with differing interpretations on the necessity of the principal issuing an invoice for such transactions.