GST ON ITEM SENT FOR REPAIR

[arun das]

1. Whether GST invoice to be raised & tax need to be paid when a Machinery is sent out of factory for REPAIR?

2. What are the documents / filings required while doing such transactions?

Request to mention the relevant provisions.

[Atul Rathod]

No. but only dispute could be whether the same can be called as job work?. Need to see the diffrence between treatment/process Vs Repair

[Mahadev R]

If it is sent on returnable basis after repair, DC + Ewaybill where necessary (see relevant State law for limit prescribed) would be required. Ensure that a control register is maintained to track them as a measure of internal control.

[KASTURI SETHI]

There is a lot of difference between job-work and 'repair and maintenance'. Both are services. Both are classified under different HSNs. Repair and maintenance is not covered under job-work. Repair and maintenance falls under HSN 998717 and it is taxable.

998717 Maintenance and repair services of commercial and industrial machinery

Regarding the movement of duty paid/tax paid goods, delivery challan is prescribed under Rule 138 A (5)(b) of CGST Rules, 2017(Presuming that your machinery is tax/duty paid). So movement of such goods is out of definition of 'supply'.

[RULE 138A. Documents and devices to be carried by a person-in-charge of a conveyance. -(1) --------------

(2) __________

(3) ________

(4) __________

(5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill.

(a) tax invoice or bill of supply or bill of entry; or

(b) a delivery challan, where the goods are transported for reasons other than by way of supply.]

[HariKishan Bhonagiri]

Can you elobarate the difference between Job work and repairs and maintainance.

[Mahadev R]

There is on gst advance ruling of west bengal on this subject. Available in GST council website. Will get good points

[KASTURI SETHI]

Difference between Job-work and Repair & Maintenance

1. Job-work is exempted (depending upon agreement between the jobbee and job worker) whereas repair and maintenance is taxable under GST. It was also taxable in pre-GST era.

2. Both have different HSN Codes. Job work 9988 and Repair 9987.

3. Definition of 'treatment or process' is entirely different from 'repair and maintenance'. Repair & maintenance is always post-manufacture. Repair means rectification of defect and maintenance enhances shelf life. Both are not interchangeable.

4. Go through the following decision of AAR West Bengal as advised by Sh. Mahadev R. Ji.

2019 (23) G.S.T.L. 375 (A.A.R. - GST) = 2019 (3) TMI 1408 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL IN RE : ALOK BHANUKA

AI Summary

GST treatment of repairs: repair and maintenance is taxable and requires delivery challan for returnable movements when applicable.
Sending machinery out for repair and maintenance is a taxable service distinct from job-work; repair and maintenance services fall under a separate HSN classification and are treated as taxable supplies. For tax-paid goods moved for repair on a returnable basis, a delivery challan should be used for non-supply movement and an e-way bill produced where statutory thresholds require; maintain a control register to track outward and return movements.