Outright sales and job work done

This query is : Open

Rakesh Sharma (Querist)
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15 May 2017 Dear experts, we are manufacturer and supply goods to Exide industries ltd. in same state as well as we do job work of the same party as it gives us scraps of batteries and we convert it to finished goods after processing. My query is that is there will be any liability of GST on JOB WORK DONE as the GST will be paid by EXIDE INDUSTRIES LTD. after value addition. Presently in the above situation, we are exempt to pay service tax as EXIDE INDUSTRIES LTD. will pay the excise duty on job work done material after value addition. please advise and guide me. Rakesh Sharma

CA Altamush Zafar

CA Altamush Zafar (Expert)
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15 May 2017 All supplies will taxable under GST. Job work will be taxable under GST as service. Though rates are still not finalised however there are indications that service will be charged at 18%. All credits on input and input services shall be available to you. For more clarifications and queries you can mail at altamush711@gmail.com