Q. 370 Question no.1 -Our client(s) is engaged in providing job work services of washing and dyeing of jeans supplied by the principal( goods owned by his customers). For washing and consequent dyeing of the jeans he( job worker) needs chemical which he procure independently from the market and use it. In other words, the chemical is not provided by the principal along with Jeans. Now the question is whether my client (The Job worker) can claim the GST paid on chemical bought by him for dyeing of the jeans supplied to him by the principal. Q no. 2- Whether the job worker is liable to file E- way bill before moving the goods, on which job work is undertaken, to the principal by way of non- motorised vehicle i.e horse cart ?

Ans. 1. In the above case, we are made to understand that a job worker is purchasing chemicals on his own and using it to provide his services of washing and dyeing of jeans. In that case, the job worker is entitled to the input tax credit of the chemicals as the inputs are used in the course or furtherance of his business, being assumed the other conditions of eligible ITC has been satisfied. 2. E-way bill is not required to be generated when the goods are transported through a non- motorised vehicle.

Q. 369 Please provide clarification of outward tax liability and input tax credit utilization both should be calculated cumulatively or only input tax credit utilization calculation should be made cumulatively in terms with rule 86B ?

Ans. The rule 86B is applicable month wise, therefore the limit of turnover exceeding INR 50 lacs to be checked every month. In the above case, you are required to discharge tax 1% i.e INR 1000/- for the month of june through cash. 

Q. 368 We have various sales depots in various states. Each depot in-charge has to sign the GST tax invoices/debit notes/credit notes etc. Actually signing the respective docs is a cumbersome job. So can we state as follows “This document is computer generated and does not require the signature or the stamp in order to be considered valid” or what is the best way to sign the documents with cost effective please suggest ?

Ans. You can use the digital signature of the supplier or authorised representative while issuing bulk invoices.