JOB WORK OF BIDI MADE OF TOBACCO.

[Ashwin Bhalakiya]

Dear Sir

My friend who is registered under gst , supply tobacco and packing material to a manufacturer by delivery chalan by stating as job work for making hand made bidi . Manufacturer uses its own bidi leaves, labour, establishment,etc and send then to my friend sale bill of hand made bidis (HSN 2403) by charging 28% gst. Along with bill MFG also enclose consumption details of tobacco and packing material which sent by my friend . The same is accounted in my friends books. Then after he sales finished bidi in Market by charging 28% gst. He takes the Input credit of purchase of bidi.

My query whether this arrangement comes under job work for my friend and manufacturer.

Whether my friend is liable for ITC 04. Is this arrangement in GST is correct.

Experts are requested to pl reply.

Ashwin

AI Summary

Understanding GST on Job Work: Supplier-Principal Dynamics in Tobacco Bidi Manufacturing Explained, Including ITC-04 Filing Requirement. A forum participant inquires about the GST implications of a business arrangement where a registered GST supplier provides tobacco and packing materials to a manufacturer for making hand-made bidis. The manufacturer uses its own resources and returns the finished bidis to the supplier, charging 28% GST. The supplier then sells the bidis in the market, also charging 28% GST and claims input credit. An expert clarifies that this arrangement qualifies as job work under GST and Central Excise Acts, with the principal responsible for tax liabilities. The expert advises filing ITC-04 returns and ensuring all taxes are paid.