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TMI BlogApplicability of GST on manufacturing activity done by contractorX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Panelists, We are manufacturer of castings / machinery parts (mainly for Railways) falling under 8607 . In our factory premises, we are providing all required materials, machinery equipment etc and getting in-process manufacturing activities done through contractors for various operation like molding / finishing / machining etc. During Excise Service tax regime, such services were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attributable to service tax. Now, most of contractors are GST compliance and issuing invoices charging GST @18% which is getting accumulated with us by way of ITC. Kindly advise how far it is correct to charge GST for in-process manufacturing activities getting done by the contractors. Also advise remedy to avoid charging GST as the ITC is getting accumulated with us. - Reply By KASTURI S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ETHI - The Reply = In my view, it is a case of Man Power Supply. Contractor is supplier. Manpower is no more under RCM. - Reply By MohanLal tiwari - The Reply = Dear Kalyani sir, Thanks for your suggestion, but in our case its not labor supply contract. The contract is for in-process manufacturing operation. We really want to avoid applicability of GST. Kindly suggest. - Reply By KASTURI SE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... THI - The Reply = Dear Querist, Has Contractor not supplied labour to your factory ? Whatever purpose may be. - Reply By KASTURI SETHI - The Reply = Supposing it is job work, even then it is taxable as under GST job work is taxable supply of service. In pre-GST era, Central Excise duty was leviable depending upon the nature of processes. GST cannot be avoided in any situation. - Reply By Moha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nLal tiwari - The Reply = Dear Sethi Sir, Thanks for clarification. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Shri Sethi. Avoiding to charge the tax is not the objective of GST laws. You can plan according to the provisions of tax and not with intention to avoid tax. - Reply By MohanLal tiwari - The Reply = Govindrajan Sir, Thanks. I appreciate your views. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = Tax avoidance is legal but tax evasion is illegal. - Applicability of GST on manufacturing activity done by contractor - Query Started By: - MohanLal tiwari Dated:- 19-12-2018 Goods and Services Tax - GST - Got 8 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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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