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TMI BlogJob work in GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Expert, Please suggest whether job work is taxable in GST. Taxable for Principle for Job worker, registered and unregistered supplier job worker If returned after job working to principal, and If direct sale/export from the premises of Job worker. Thanks. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = In my view it will be there. However it can be ascertained on the outcome of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egular Acts and Rules. - Reply By CA Surender Gupta - The Reply = As per the scheme under the present Model Draft GST law, Goods will be allowed to be send for Job Work without payment of Tax. Further, subject to conditions and permissions, goods will be allowed either to bring back or to sale / export directly from the premises of Job Worker. Refer: Section 16A : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taking input tax credit in respect of inputs sent for job work and Section 43A : Special procedure for removal of goods for certain purposes Here, one more concern arises, that the provisions relating to Job Work has been provided under the proposed Model CGST / SGST law, therefore it is to be seen how it will be applicable for inter-state movem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of goods since there is no corresponding provision in the proposed draft IGST law. - Reply By Narendra Soni - The Reply = Thanks Mr.Surender Gupta for proper clarification with section in this matter. - Reply By Ganeshan Kalyani - The Reply = The condition for sending the raw material to job worker and receiving it back or selling it from job worker premises is framed same as it is in cur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent excise law. The time period of capital goods sending to job worker is also same in draft model gst law. Thanks experts to enlightening the subject. - Reply By YAGAY AND SUN - The Reply = Only one major change that if goods are not returned within prescribed time limit then interest along with Duty needs to be reversed and at the event of return of goods interest along with duty shall be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken back. - Reply By YAGAY AND SUN - The Reply = Comptroller Auditor General's Objections on CENVAT Credit CAG of India had conducted a Performance Audit on CENVAT credit scheme, to seek an assurance that provisions in the Act/rules/clarifications/procedures as laid down are unambiguous and adequate to safeguard any misuse of the CENVAT credit scheme and that the internal control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and monitoring mechanism were in place and effective. CAG found several provisions of the law inadequate in its recent report to Parliament. Absence of provision for charging interest on reversal of credit for non-receipt/delayed receipt of goods sent for job work within 180 days Inputs or semi-finished goods sent to job worker under rule 4(5) (a) of CENVAT Credit Rules, 2004, should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be returned to the factory within 180 days. For failure to do so proportionate CENVAT credit on inputs/semi-finished goods not received back is required to be reversed. However, in case of delay in reversal of credit, there is no specific provision for charging interest on such delayed reversal. This results in loss of interest to the Government. Audit Recommends: The Government may con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sider inserting provision for charging interest in case of non/delayed reversal of CENVAT credit in respect of non/delayed receipt of goods sent to job worker. The Tariff Conference held on 28 and 29 October 2015 had decided that the interest is liable to be paid after the expiry of period of 180 days and there is no need for insertion of provision for charging interest. However, Audit is of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that to avoid ambiguity there is a need to insert specific provision in this regard. - Reply By Ganeshan Kalyani - The Reply = Yes the good part is interest paid is also proposed to be cenvatable. Thanks. - Reply By YAGAY AND SUN - The Reply = Irony is that working capital shall be blocked in such scenario which is life blood for Business/Trade. - Reply By Ganeshan Kalyani - The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply = It will enduce assessee to do timely conplaince. - Job work in GST - Query Started By: - Narendra Soni Dated:- 20-9-2016 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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