what is GST rules for capital goods transfer from one branch to other branch for job work not for supply
like machinery on hire etc
Conditions and restrictions in respect of inputs and capital goods sent to the job worker: (1) The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker.
(2) The challan issued by the principal to the job worker shall contain the details specified in rule 55.
Rule 55. Transportation of goods without issue of invoice.- (challan issued by principal when goods send to job worker) (1) For the purposes of (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or (d) such other supplies as may be notified by the Board,
the consigner (Principal) may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely
:- date and number of the delivery challan;
name, address and Goods and Services Tax Identification Number of the consigner, if registered;
name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered;
Harmonised System of Nomenclature code and descriptttion of goods;
quantity (provisional, where the exact quantity being supplied is not known)
taxable value
tax rate and tax amount - central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;
place of supply, in case of inter-State movement;
and signature.
(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:-
(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;
(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.
(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138.
(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
(5) Where the goods are being transported in a semi knocked down or completely knocked down condition -
(a) the supplier shall issue the complete invoice before dispatch of the first consignment;
(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
(d) the original copy of the invoice shall be sent along with the last consignment
(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter. (25th end of the quarter)
(4) Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143, it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.
Explanation.- For the purposes of this Chapter,- (1) the expressions “capital goods” shall include “plant and machinery” as defined in the Explanation to section 17; (2) for determining the value of an exempt supply as referred to in sub-section (3) of section 17- (a) the value of land and building shall be taken as the same as adopted for the purpose of paying stamp duty; and (b)the value of security shall be taken as one per cent. of the sale value of such security.
Read more at: https://www.caclubindia.com/articles/procedure-of-job-work-under-gst-32134.asp
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