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scrap of job work

akash thakur (syllabus) (35 Points)

11 September 2018

what is procedure if goods send to job work and scrap retained by job worker ...plzzz full explain this matter .if any FAQ of govt send me

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3 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 11 September 2018

Kindly refer circular 38/12/2018, Dt.29/3/18

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 11 September 2018

As per Section 143 (5) any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered. So its principal or job worker who is liable to deposit GST on waste/scrap

Chirag Mehta (26 Points)
Replied 09 June 2022

He meant should scrap value be treated as consideration for job work charges. sec 143(5) is crystal clear but most experts says it's consideration over and above job work charges. so a small time amature CA or self learner cannot understand how to deal with such problem if he goes by act.