Job work charges taxation

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Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2017 R/ Experts, please make clear our doubt of the matter. We are a manufacturing p Lt co .we used to give some material to job work for grinding & bending under 57 challan of excise.Job worker not charged any Service tax on it only claim labour charges because, our products is excisable & we pay duty on final product. Now some material is with job worker since may,17 he returned part qty after finishing on 7th July and rest qty will be subsequent date . In this transaction of DT 7th July what will happen whether GST is applicable .job worker is registered in GST. There is no issue of closing stock on 30 June we have done.

Second, any provision under GST not to charges GST on job work . Please brief.
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2017 Same provision continues under GST, The GST Act makes special provisions with regard to removal of goods for job-work and receiving back the goods after processing from the job-worker without the payment of GST. The benefit of these provisions shall be available both to the principal and the jobworker.
See the link for more details.
https://www.cbec.gov.in/resources//htdocs-cbec/gst/eflier-jobwork22062017.pdf

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Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2017 Ok, but just two days back I have attend GST seminar where it has been told that now GST wii be applicable on job work , hence confusion.in the given provision says to take the permission from commissioner& show additional place of business ? Not clear

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2017 No confusion. Additional place of business is required only when The facility of supply of goods by the principal to the third party directly from the premises of the jobworker on payment of tax in India and likewise with or without payment of tax for export may be availed.
Additional place of business is not required if materials are received back.

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