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Regarding gst rate on fabrication

Deep Garg (Accountant) (259 Points)

18 July 2017

RESPECTED EXPERTS PLEASE GUIDE FOR THE GST RATE FOR FABRICATORS. THE NATURE OF THERE BUSINESS IS THEY GOT CLOTH FROM MANUFACTURER AND MADE PAINTS FROM IT AND PREPARE IT TO SELLING CONDITION AND SENT IT TO MANUFACTURER WITH THEIR BILL OF FABRICATION. NOW WHAT IS THE GST RATE APPLICABLE ON THIS PROCESS OF FABRICATION

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 25 August 2017

It is called Job work........ and the GST rates has been reduced to 5% over such job work......

1 Like

Deep Garg (Accountant) (259 Points)
Replied 27 August 2017

Thanks Dhiraj Sir.. Please also tell if we make our job worker consignee in the cloth bill and send it to direct jobworker for further process. Should we required to issue him job work challan or made him consignee in cloth bill is sufficient in this case

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 27 August 2017

Job-work procedural aspects:

Certain facilities with certain conditions are offered in relation to job-work, some of which are as under:

a) A registered person (Principal) can send inputs/ capital goods under intimation and subject to certain conditions without payment of tax to a job-worker and from there to another job-worker and after completion of job-work bring back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job-worker.

b) Principal can send inputs or capital goods directly to the job-worker without bringing them to his premises and can still avail the credit of tax paid on such inputs or capital goods.

c) However, inputs and/or capital goods sent to a jobworker are required to be returned to the principal within 1 year and 3 years, respectively, from the date of sending such goods to the job-worker.

d) After processing of goods, the job-worker may clear the goods to-

(i) Another job-worker for further processing

(ii) Dispatch the goods to any of the place of business of the principal without payment of tax

(iii) Remove the goods on payment of tax within India or without payment of tax for export outside India on fulfilment of conditions.

The facility of supply of goods by the principal to the third party directly from the premises of the jobworker on payment of tax in India and likewise with or without payment of tax for export may be availed by the principal on declaring premise of the job-worker as his additional place of business in registration. In case the job-worker is a registered person under GST, even declaring the premises of the job-worker as additional place of business is not required.

Before supply of goods to the job-worker, the principal would be required to intimate the Jurisdictional Officer containing the details of the descripttion of inputs intended to be sent by the principal and the nature of processing to be carried out by the job-worker. The said intimation shall also contain the details of the other job-workers, if any.

The inputs or capital goods shall be sent to the jobworker under the cover of a challan issued by the principal. The challan shall be issued even for the inputs or capital goods sent directly to the job-worker. The challan shall contain the details specified in Rule 10 of the Invoice Rules.

Read more at: gst-fliers/eflier-jobwork

1 Like

Deep Garg (Accountant) (259 Points)
Replied 28 August 2017

Thanks Sir Please also tell about tds point in this case what is the rate of tds applicable on this job work ??

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 28 August 2017

For individuals contractee.......... no TDS under GST, but section 194C of IT act is to be followed.

1 Like

Deep Garg (Accountant) (259 Points)
Replied 28 August 2017

Sir please also tell tds deduction time like we receive bill of labour job dated 25 june on 8 th july and record the same in our book on 8 th july and will make this bill payment on almost one month later like on 5 August In this case when we have to deposit this bill tds on 7th July or 7August Or 7 September

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 29 August 2017

The person responsible for making payment to resident contractor/sub-contractor should deduct TDS

either at the time of crediting such sum to the account to the payee or
at the time of payment thereof in cash or
by issue of a cheque or by any other mode, ................whichever is earlier.

When to pay the TDS as such deducted................ Within 7 days from the end of the month in which the deduction is made.

So, in above case TDS deduction date is 8 th July...... which is to be paid on or before 7th August....