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TMI BlogChanges in Circulars issued earlier under the HPGST Act, 2017.X X X X Extracts X X X X X X X X Extracts X X X X ..... (Compensation to States) (Amendment) Act, 2018 (hereafter referred to as the GST Amendment Acts) have been brought in force with effect from 01.02.2019. 2. Consequent to the GST Amendment Acts, the following circulars issued earlier under the HPGST Act, 2017 are hereby amended with effect from 01.02.2019, to the extent detailed in the succeeding paragraphs. 4 Circular No. 38/12/2018 dated 13.03.2019 This circular is revised in view of the amendment carried out in section 143 of the HPGST Act, 2017 vide section 29 of the HPGST (Amendment) Act, 2018 empowering the Commissioner to extend the period for return of inputs and capital goods from the job worker. Further on account of amendment carried out in section 9(4) of the HPGST Act, 2017 vide section 4 of the HPGST (Amendment) Act, 2018 done in relation to reverse charge, certain amendments to the Circular are required. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 4.1 Original Para 2. As per clause (68) of section 2 of the HPGST Act, 2017 .. Subsequently, on completion of the job work (by the last job worker), the principal shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deemed to be a supply by the principal on the day when the said inputs / capital goods were sent out by him. Thus, essentially, sending goods for job work is not a supply as such, but it acquires the character of supply only when the inputs/capital goods sent for job work are neither received back by the principal nor supplied further by the principal from the place of business / premises of the job worker within the specified time period (under section 143) of being sent out. It may be noted that the responsibility for sending the goods for job work as well as bringing them back or supplying them has been cast on the principal. 4.5 Original Para 6.1 Doubts have been raised ... It may be noted that the job worker is required to obtain registration only if his aggregate turnover, to be computed on all India basis, in a financial year exceeds the specified threshold limit (i.e. ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu Kashmir) in case both the principal and the job worker are located in the same State. .. However, exemption from registration has been granted in case the aggregate turnover of the inter-State su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red, GST would be payable by the principal on reverse charge basis in terms of the provisions contained in section 9(4) of the HPGST Act. However, the said provision has been kept in abeyance for the time being. 4.8 Amended Para: 9.4.(i) (i.) Supply of job work services : The job worker, as a supplier of services, is liable to pay GST if he is liable to be registered. He shall issue an invoice at the time of supply of the services as determined in terms of section 13 read with section 31 of the HPGST Act. The value of services would be determined in terms of section 15 of the HPGST Act and would include not only the service charges but also the value of any goods or services used by him for supplying the job work services, if recovered from the principal. Doubts have been raised whether the value of moulds and dies, jigs and fixtures or tools which have been provided by the principal to the job worker and have been used by the latter for providing job work services would be included in the value of job work services. In this regard, attention is invited to section 15 of the HPGST Act which lays down the principles for determining the value of any supply under G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying the goods from the job worker s place of business/premises as far as moulds and dies, jigs and fixtures, or tools are concerned. 5 Circular No. 41/15/2018 dated 25.04.2018 This circular is revised in view of the amendment carried out in section 129 of the HPGST Act, 2017 vide section 27 of the HPGST (Amendment) Act, 2018 allowing 14 days for owner/transporter to pay tax/penalty for seized goods. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 5.1 Original Para 2(k) In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06 , the action under section 130 of the HPGST Act shall be initiated by serving a notice in FORM GST MOV-10, proposing confiscation of the goods and conveyance and imposition of penalty. 5.2 Amended Para2(k) In case the proposed tax and penalty are not paid within fourteen days from the date of the issue of the order of detention in FORM GST MOV-06, the action under section 130 of the HPGST Act shall be initiated by serving a notice in FORM GST MOV-10, proposing co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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