Q. 584 Take for instance the case of three parties A (Exporter) ,B (Job worker/Consignee outside India) and C (Importer of goods). A, having place of business in India exports goods to C in Dubai (outside India) for ₹ 100. The export invoice & shipping bill is of value ₹ 100 raised to C and goods are shipped to B for threading work (job work) in Dubai on ‘Bill to Ship to’ model. Goods are then sent to C from B’s premises and B charges ₹ 40 against Invoice of job work charges to A. The following questions arise for the above case: a) Whether the value of ₹ 100 considered as export of goods is correct? b) Whether ₹ 40 charged by the job worker will be treated as an Import of service under GST Act,2017?

Ans. You need to check conditions of import mentioned in GST law in respect of job work charges, if it is import then value of export to be calculated accordingly. “import of services” means the supply of any service, where–– (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India;

Q. 583 IS ANY RCM ON PURCHASE FROM COMPOSITION DEALER IF PURCHASED BY COMPOSITION DEALER? ALSO SHARE SECTION AND RULE FOR THE SAME ?

Ans. Yes, it is covered under RCM as per rule 5 of the CGST rules.

Q. 582 A car dealer in Delhi sells a new car to Mr. A (unregistered person) of Noida. Mr A comes to Delhi showroom and takes delivery himself by providing his address. It,s an inter state supply or Intra State Supply?

Ans. Where the recipient states the address for delivery same as the location of the showroom, the place of supply would be the location of the showroom because as per the supplier the movement of goods terminates then and there, then intra state supply.