Chandresh (Sr Accountant) 26 November 2019
Under business scenario, it is required to sent machine for repair at
vendors work station say electric motors etc for rewinding.
Are such repairs shall be called as job work transactions and are subject to report under statement ITC04?
Pankaj Rawat (GST Practitioner) 26 November 2019
No..... since the there is no movement of Goods from principal to Jobworker place hence no need report such transactions in ITC 04 .
As per Section 143 , read with Rule 45 of CGST Act , the inputs sent by principal to Jobworker under cover of challan & details of challan in respect of goods despatch & reced. back shall be reported in Form ITC 04
So if the Goods is not Sent , the challan cannot be Issued .
NO NEED TO REPORT SUCH TRANSACTION IN ITC 04
ANKIT JAIN (CHARTERED ACCOUNTANT) 28 November 2019
Job work is the processing or working on goods supplied by another person/entity to complete a part or whole of the process. Job work can be undertaken for the initial process, intermediate process, assembly, packing or any other completion process or complete manufacturing.
As per definition it is not covered in JW because machine is sending for repair not for manufacturing.
Pankaj Rawat (GST Practitioner) 22 January 2020
Any "Treatment or process" undertaken on another registered person"s goods is called Job work , it also be contemplated that sending machinery for repair is also Job work.
Note : Reference can be made from answer to Q15 of FAQ on banking & insurance by CBIC