Impact of short receipt of material from job worker on GST Liability and ITC -04

[Guest]

Dear Experts,

Good Afternoon.......

I have query regarding short receipt of material against job work. For your reference I have provided you working table below.

Annexure No.

Date

From

To

Item sent

Item Name

Qty Sent

Value

UOM

Received Qy

Value

UOM

Remarks

JANX18-19/0136

02-Jul-18

STORE-1

INDUS.XRAY

PFLRAM00GPKN

RAM : Packing

200

2,000

Kg

200

2,000

Kg

In this case 200 Qty send and 200 Received. Hence no issue of value and qty.

JANX18-19/0137

03-Jul-18

STORE-1

SYNERGYINF

WPLKWPG0GIN3

KWPG : Inspection 3

100

1,000

Kg

85

????

Kg

But here there is short receipt then which value to be shown.

And how to report Short Qty. of (15 KG)

 

Kindly reply treatment of above transaction under ITC-04 return. And is there any GST liability on short receipt of material by 15Kg.???

Regards,

Devendrasinh Chauhan

[KASTURI SETHI]

As per Section 143(3) of CGST Act, it will be treated as supply and the supplier(Principal) will pay GST on such short receipt and it can be reflected in Serial No. 5(C) of ITC--04.

[Ganeshan Kalyani]

Applicable tax is payable on less quantity received from the job worker.

AI Summary

GST liability on short receipt from job worker: principal must pay tax and report the shortfall in ITC-04. Short receipt of inputs from a job worker is treated as a taxable supply and the principal must pay GST on the quantity/value shortfall. The principal should quantify the tax on the short receipt and disclose the shortfall in the ITC-04 job-work/return disclosure so the GST liability and related ITC reconciliation are recorded.