11 March 2019
In my view , GST is not applicable . Goods sent for job work is not subject to GST if returned in one year/ 3 years ( in case of capital goods).
Job-worker and principal can be located either in same State or in same Union Territory or in different States or Union Territories.
As per schedule 1 referred to in section 7 scope of supply
Supply of goods or services or both between related or distinct person without consideration is liable to gst
Hence I feel What is the market rate of job work The unit providing job work service needs to raise a bill as intercompany job work sale and charge gst on the same.
Kindly let me know your views on the above
Eg. unit A of X co. in Karnataka sent goods to unit B of X co. in Tamilnadu, now on transfer of these good for job work Unit A need not charge gst But unit B on returning the goods to unit a after job work should charge gst on the market value of the service provided.
11 March 2019
You are right to the extent that supply between distinct person is subject to GST as per schedule 1 of the Act
But if Unit A is sending good for job work ( not sold) , then Sec 143(3) will be applicable
In your example above , - Unit A will not charge GST and in case unit B will not return goods within a year , Unit A only is liable to pay GST at applicable rate and time of supply will be the date when Unit A had send goods to Unit B .( Refer Sec 143(3) of CGST Act )
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