GST and job work

Kolkata based company places 2 separate POs on 2 different parties in Chennai. Party A will supply Mandrel . But to avoid transportation, can we ask them to send to Party B , who will then install Mandreal on Gear Box ( purchased under separate PO) and then send to Kolkata.

 

About GST credit and payment to B  , there is no issue. But how to handle transaction and GST with Party A

Kindly guide.

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Quick Summary
This discussion clarifies how to manage GST for job work when goods are shipped directly to a third party for processing. The key is for the initial supplier (Party A) to issue a tax invoice to your company (the buyer) but ship the goods directly to the service provider (Party B). This 'bill to ship' approach ensures you can claim input tax credit without issues, even though the goods don't pass through your premises.

There is no issue with gst .
so you hv raised the invoice. taken credit of gst.
Party A has to issue Tax Invoice as bill to ship concept. He has to bill to you and has to ship to Party B. You can avail input credit with out any hesitate.

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