Dear Expert
please advice tax applicability on following transactions, one of my client are issuing HSD to Contractors in specified Job Work and booked HSD in consumption(Cost) and in Contract has specified factor for calculation standard Consumption .If any excess or short issued of HSD with standard factor of Consumption of HSD ,the amount will be deducted or paid to the Contractor.
We are know that HSD is not cover in GST,
1. please advice applicability of taxes on above transactions
2. Documentation require to issue/received with contractor for deduction or payment of above excess/short issue of HSD.
GST Implications for High-Speed Diesel in Job Work: AAR Rules HSD Attracts GST Despite Exclusion from GST Regime A discussion on the tax implications of issuing High-Speed Diesel (HSD) to contractors for job work under the Goods and Services Tax (GST) regime. The main query concerns whether HSD, not covered under GST, should be included in the transaction value for GST purposes. One expert argues that HSD should be included in the job worker's consideration, thus attracting GST. Another disagrees, stating HSD is not payable to the job worker and should not be included. The Authority for Advance Ruling (AAR) in West Bengal has ruled that goods consumed in job work are liable to GST, even if not returned. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
