Job work completed in july -gst implications

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 Hi, We (mfg) were given materials to jobworker in May'17.Jobworker has completed job in July . whether GST will be applicable on the same or only job charges he will claim. Mtrl as on 30-6-17 shown in Closing stock by both.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 GST will be applicable on the same. GST payable by the principal not by job worker. Claim ITC on both stock.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 I mean to say that, in earlier rule mgf was discharge excise duty on final product hence ser.tax was not liable. ,Now under GST as per sec. 141 transitional provisions whether GSTis applicable on job worker , job worker is recd under GST

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 Same provision continues GST is not applicable on job worker provided principal is registered under GST and sends material under challan.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 I confused sir, in your earlier reply said GST apply. & In second said GST not apply. Both are registered under GST having turnover above five crore.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2017 Under which provision GST will be not applicable on job worker please let us know perticular sec. Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 See the link.
http://www.cbec.gov.in/resources//htdocs-cbec/gst/eflier-jobwork22062017.pdf;jsessionid=2D0018ED88142941A87A2435C347F466