For job work done

This query is : Resolved

KARAN SINGH (Querist)
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01 August 2017 we are providing servicing to the client and at the same time we are also used to install the security system to our client place. If we send the materials from Kolkata store to Bhopal store then What will be the process????

Nilesh

Nilesh (Expert)
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02 August 2017 You need to raise an invoice from WB to MP and needs to pay IGST

KARAN SINGH

KARAN SINGH (Querist)
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02 August 2017 Suppose Head office at Mumbai (Maharashtra) Sends goods worth Rs. 100000 to its own branch registered under GST at Gujarat at Surat and Surat branch makes value addition (job work) of Rs. 20000 and send back the goods of Rs. 120000 to Mumbai HO.
Now the question is,
(a) Is any GST payable while transferring goods by HO to Branch of Rs. 100000 for job work?
(b) Is any GST payable while transferring goods by Branch to HO of Rs. 120000 after job work?
(C) Is any tax payable by HO on Job work portion of Rs. 20000?

Read more at: https://www.caclubindia.com/forum/gst-on-jobwork-done-by-branch-411450.asp

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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25 July 2024 Let's address each part of your query regarding GST implications for the scenario described:

### Scenario 1: Goods Sent from Head Office (HO) to Branch (Surat) for Job Work

**Situation:**
- Head Office at Mumbai sends goods worth Rs. 100,000 to its branch registered under GST at Surat (Gujarat) for job work.
- The branch (Surat) adds value of Rs. 20,000 during the job work process.
- After job work, the goods worth Rs. 120,000 are sent back to Mumbai HO.

**GST Implications:**

**(a) GST Payable on Goods Sent by HO to Surat Branch for Job Work (Rs. 100,000):**

- **No GST payable** on goods sent by HO to Surat branch for job work.
- As per GST law, when goods are sent by a registered person to another state for job work, it is considered as a supply but not a taxable supply if certain conditions are met (notably, goods must be returned within specified timeframes and not used for further supply other than return).
- Hence, no GST is levied on this transaction.

**(b) GST Payable on Goods Sent Back by Surat Branch to HO after Job Work (Rs. 120,000):**

- **GST is payable** on the transaction value of Rs. 120,000 when the goods are sent back by Surat branch to Mumbai HO after job work.
- The GST applicable will depend on the classification of the goods and the applicable GST rate (CGST, SGST/UTGST, IGST) based on the place of supply rules.

**(c) Tax Payable by HO on Job Work Portion (Rs. 20,000):**

- **GST is payable** on the job work charges of Rs. 20,000 added by the Surat branch.
- The Surat branch should issue a tax invoice to Mumbai HO for the job work charges, and Mumbai HO will need to pay GST on this amount.
- The GST rate will depend on the nature of the job work services provided.

### Conclusion:

- No GST is payable when goods are sent by HO to Surat branch for job work.
- GST is payable when goods after job work are sent back by Surat branch to HO (Rs. 120,000).
- GST is payable on the job work charges (Rs. 20,000) added by Surat branch.

It's crucial to maintain proper documentation and comply with GST filing requirements to ensure smooth transactions and compliance with GST laws. If you have specific details or variations in your scenario, consulting with a GST professional or tax advisor would be beneficial for accurate guidance tailored to your situation.