https://www.taxtmi.com/forum/issue?id=113121 Under Section 143(5) CGST, scrap from job work supplied by a registered job worker is a supply by the job worker and taxed on the scrap sale; if the job worker is unregistered, the principal is treated as the supplier. A credit note issued by the job worker for material value functions as an adjustment against job charges and, where scrap has been taxed on sale by the job worker, does not by itself attract separate GST; parties may instead negotiate net job charges to reflect scrap retention, but accounting and return positions must remain consistent with who is the supplier. en-us Mon, 27 Nov 2017 17:16:38 +0530 Thu, 23 Jan 2025 15:55:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=113121 Under Section 143(5) CGST, scrap from job work supplied by a registered job worker is a supply by the job worker and taxed on the scrap sale; if the job worker is unregistered, the principal is treated as the supplier. A credit note issued by the job worker for material value functions as an adjustment against job charges and, where scrap has been taxed on sale by the job worker, does not by itself attract separate GST; parties may instead negotiate net job charges to reflect scrap retention, but accounting and return positions must remain consistent with who is the supplier. Discussion-Forum GST Mon, 27 Nov 2017 17:16:38 +0530 https://www.taxtmi.com/forum/issue?id=113121