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Material movement from one unit to another unit for further processing under gst

24 July 2017

A Mfg company having 2 separate units involved in same business with same GST number. Now they need to send some materials from one unit to another unit for further processing purposes and the same will be bring back after the process.

In this case what type of documents to be maintained for sending material to another unit and bringing back under gst.

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4 Replies

Sandeep Upadhyay (1518 Points)
Replied 25 July 2017

Intra state stock transfer require delivery challan

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 25 July 2017

You can send the material for further processing without issue of invoice on jobwork challan without payment of duty but goods should be return within one year.

Chandra Shekar Yeldhandi (21 Points)
Replied 25 July 2017

While returning the material by another unit after process, delivery challan is sufficient or it should carry job work invoice.

Mridul (a) (141 Points)
Replied 25 July 2017

As per section 2(68) of Cgst Act, job work means, "any treatment or process undertaken by person on goods belonging to another registered person" but in this case, goods are belonging to same person not another person. So i think, it is not a case of Job Work.
Only Delivery challan is sufficient in this case. As it is transportation of goods for reason other than supply, covered by Rule 55 "Transportation of Goods without issue of Invoice" point (1)(c)