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

[ACCOUNTS MANAGER]

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

AI Summary

GST Rules: Report and Pay Tax on Short Receipt of Materials Under Section 143(3) CGST Act in ITC-04 Form An accounts manager queried about the GST implications and reporting requirements under ITC-04 for short receipt of materials from a job worker. In one instance, 200 kg were sent and received, posing no issue. However, another transaction involved a shortfall of 15 kg. Experts advised that under Section 143(3) of the CGST Act, the shortfall is treated as a supply, requiring the principal to pay GST on the short receipt, which should be reported in Serial No. 5(C) of ITC-04. The applicable tax is payable on the lesser quantity received.