We are supplying materials to JOB work which have 18% rate.
The finished goods they transfer have only 5% GST.
how cab we avoid this loss due to rate difference.
4 Replies
akshay parakh
(Chartered Accountant)
(394 Points)
Replied 28 February 2021
Do you sale to them? or supply on foc basis and then they deliver material back to you and you sale them
SHAHHUL IQBAL
(article assisstant)
(56 Points)
Replied 28 February 2021
Its sale to job work @ 18%.
returned as a purchase @ 5%.
returned as a purchase @ 5%.
akshay parakh
(Chartered Accountant)
(394 Points)
Replied 28 February 2021
Do one thing dont sale to then just send them your material and after getting it finished sale them @ 5% for job work service recieve seperate bill.then this we will cone under inverted duty structure scheme and you can claim refund for same on inputs by rule 89 and form gst rfd01
SHAHHUL IQBAL
(article assisstant)
(56 Points)
Replied 28 February 2021
Thats not possible. only sale will do due to some practical difficulties.
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