JOB WORK with different rate.

We are supplying materials to JOB work which have 18% rate.
The finished goods they transfer have only 5% GST.
how cab we avoid this loss due to rate difference.
Replies (4)
Quick Summary
This discussion addresses a common challenge in job work scenarios where materials supplied at an 18% GST rate are returned as finished goods taxed at only 5%. Participants explore ways to mitigate losses arising from this rate disparity. While some suggest alternative arrangements like FOC supply, the consensus leans towards finding solutions within a direct sales framework to manage the inverted duty structure.

Do you sale to them? or supply on foc basis and then they deliver material back to you and you sale them
Its sale to job work @ 18%.
returned as a purchase @ 5%.

Do one thing dont sale to then just send them your material and after getting it finished sale them @ 5% for job work service recieve seperate bill.then this we will cone under inverted duty structure scheme and you can claim refund for same on inputs by rule 89 and form gst rfd01

 

Thats not possible. only sale will do due to some practical difficulties.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register