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gst on foc payable

kiran (accountant) (444 Points)

17 May 2019

can i charge GST on material which sent for testing purpose or foc to related & non related party.

where I show in gst return.

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5 Replies

Nikhil Bhatia (Article) (309 Points)
Replied 17 May 2019

hey Kiran,
the material you have sent is for testing purposes i.e. its a kind of job work and job work didn't even a supply, hence in my opinion there is no need to charge gst.

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abhishek bardia (partner) (308 Points)
Replied 17 May 2019

i feel if you have sent goods for testing purpose it won't constitute a supply since it has no consideration. but if after testing the party approves and keeps the material it will be supply. correct me if i am wrong.

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CA Shikha Sharma (Ceo) (3869 Points)
Replied 18 May 2019

job work not a supply

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 23 May 2019

No need to pay GST on goods sent for job work but you have to file ITC-O4 form for giving details of goods sent for job work According to Section 143(1) of CGST Act read with CGST Rule 45, Principal shall under intimation to the department through Form ITC-04 (based on Circular 38/2018), send any inputs or capital goods, without payment of tax, to a job worker for job work. Note, movement of goods without payment of tax from job worker to another job worker and likewise is acceptable.