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JOB WORK with different rate.

SHAHHUL IQBAL (article assisstant) (56 Points)

27 February 2021

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.

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4 Replies

akshay parakh (Chartered Accountant) (394 Points)
Replied 28 February 2021

Do you sale to them? or supply on foc basis and then they deliver material back to you and you sale them

SHAHHUL IQBAL (article assisstant) (56 Points)
Replied 28 February 2021

Its sale to job work @ 18%.
returned as a purchase @ 5%.

akshay parakh (Chartered Accountant) (394 Points)
Replied 28 February 2021

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