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

AI Summary

Company A Must Charge GST on Scrap Sale to Company B; Debit Note Issued Without Taxes Needs Correction. A discussion on a forum addresses a GST-related issue where company A sent materials for job work to company B before the GST implementation. Scrap was generated at B's premises during the GST period. In December 2018, A issued a debit note to B for the scrap without taxes. Experts advised that A, as the owner of the scrap, effectively sold it to B and must charge GST on the transaction. B can also supply the scrap from its premises, charging applicable GST. The consensus is that A must charge and deposit GST on the scrap sale.