job work pre gst period

[Madhavan iyengar]

Where material was sent out for job work by A in pre gst period to B the job worker and scrap is generated at B job workers end in GST period

Now during Dec 18 A has raised a debit note on B in GST period for scrap with out any taxes

kindly clarify the treatment to be given by A

[KASTURI SETHI]

A is owner of scrap generated at B's premises. By raising debit note A has sold the scrap to B. A has supplied the taxable goods in the course of business. A is required to charge GST from B and deposit with the Govt. Scrap is also final product.

[Ganeshan Kalyani]

B can supply scrap from his premises by charging applicable GST on it. Secondly, A raises a debit note on B for the scrap value. This implies A has supplied scrap to B and therefore, A has to charge applicable GST on the debit note.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.

AI Summary

Supply of scrap: principal issuing a debit note must charge GST on the scrap and remit the tax. When scrap generated at a job worker's premises during the GST period is billed by the principal via a debit note, the principal, as owner of the scrap, has effected a taxable supply to the job worker and must charge and remit GST on the debit note; although the job worker could supply scrap directly, issuance of the debit note makes the principal responsible for GST on that supply.