Taxable value reporting in ITC-04, Goods and Services Tax - GST

[Ashiesh Prremji]

Dear Experts,

My query is regarding reporting of Taxable Value in Table 4 of ITC-04. If we send semi- finished Goods to job-worker, how will find out taxable value & gst rate of the same to report ?

Thanks,

Posts / Replies

[Shilpi Jain]

Taxable value can be derived based on the cost involved in getting the goods to the semi finished stage. In delivery challan rate of tax not required since the transaction is not that of supply.

[KASTURI SETHI]

Sh.Ashiesh Prremji,

What are semi-finished goods and what are finished goods ? Classification of some semi-finished goods and finished goods fall under the same Chapter/Heading/sub-heading. In that situation, rate of tax will be same only valuation will differ. Pl. answer to my query.

[Shilpi Jain]

Classification is a pretty complex topic... the government should try to even out the tax rates in such a manner that classification is no longer relevant, as was done in Excise and service tax era.

[Ashiesh Prremji]

Thanks to both of you for reply!

Sir, if we take example of one item i.e. Air Intake which is used for tractor & GST rate on that is 28% on final Product. We purchase raw material @ 18% and after some process we send it to job work for polishing. After polishing its our Final product to sale.

There are many goods on which we avail such type of job work. My query is whether to report in ITC-04 we need to go through cost sheet for all goods (on which job work done) to find Taxable value of that semi-finished goods & GST rate which is applicable on that ?

Is it not a tedious work more than reporting in GSTR-1 & 3B ?

Sir/ Madam, Practically facing little difficult to find out GST rate on that semi finished goods. Can we use GST rate of final Goods to report in ITC-04 if any repercussion is not there?

[KASTURI SETHI]

The issue of semi-finished goods has been taken up in the following decision of AAR. Go through this and see if it can help you somewhat. Rate of tax is same for semi-finished goods and finished goods in this decision of AAR.

2020 (1) TMI 978 - AUTHORITY FOR ADVANCE RULING, UTTARAKHAND - IN RE : V.K. ENTERPRISES

[Shilpi Jain]

Sir... even if you make an error in delivery challan, it would only be procedural. So don't worry much as it is a revenue neutral situation.

So the value need not be put with full accuracy.