Q. 288 We are principal manufacturer we intend to send taxable materials for job work purchase after job work they will return materials please inform procedure for the same job workers are both registered and unregistered.

Ans. Job work sending procedure:

1) A registered person (Principal) can send inputs/ capital goods under intimation and subject to certain conditions without payment of tax to a job worker and from there to another job worker and after completion of job work bring back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job workers.

2) Principal can send inputs or capital goods directly to the job worker without bringing them to his premises, still the principal can avail the credit of tax paid on such inputs or capital goods.

3) As per section 19 of CGST Act, 2017, inputs and/or capital goods after processing shall be returned back to the principal within 1 year and 3 years, respectively, from the date of sending such goods to the job worker.

4) If goods sent to the job worker is not received back within the stipulated time limit, then it is deemed as supply from the effective date and the principal manufacturer will have to pay the tax on such deemed supply.

5) Principal may supply the processed goods to the third party directly from the premises of the job worker on payment of tax in India likewise with or without payment of tax for export may be availed by the principal on declaring premise of the job worker as his additional place of business in registration.

6) In case the job worker is a registered person under GST, even declaring the premises of the job worker as an additional place of business is not required.

7) Before supplying goods to the job worker, the principal would be required to intimate the Jurisdictional Officer containing the details of description of inputs intended to be sent by the principal and the nature of processing to be carried out by the job worker. The said intimation shall also contain the details of another job worker, if any.

8) The inputs or capital goods shall be sent to the job worker under the cover of a challan issued by the principal. The challan shall be issued even for the inputs or capital goods sent directly to the job worker. The challan shall contain the details specified in rule 10 of the Invoice Rules.

9) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.

10) Pursuant to section 143 (5) of the CGST Act, 2017, waste generated at the premises of the job worker may be supplied directly by the registered job worker from his place of business on payment of tax or such waste may be cleared by the principal, in case the job worker is not registered.

11) The principal is also required to file Form ITC-04 including the following details:

· Goods dispatched to a job worker or

· Received from a job worker or

· Sent from one job worker to another

Q. 287 company x has supplied capital goods to co y against Export Promotion capital Goods Authorisation. as deemed export by charging igst and paid same to govt now X company ( supplier) filled Refund application;of such collected tax instead of by recipient. the department insist to submitt C.A. certificate U/R 89 (2)(m); whether it is compulsurey to submitt ca certificate since amount of refund is rs above 2 lakh.my question is that whether it is wrong to issue certificate since co X has charged ,collected and paid to the govt and then claimed refund on behalf of recipient. one condition for issuing certicate is that incidence of tax and interest is not passedon to any other person.whether it will be contravention of condition thanks

Ans. As per Rule 89 of CGST Rules-2017, Refund in case of “Deemed Export” can be filed either by supplier or recipient of such supplies. In case refund is filed by the supplier of such supplies then as per notification no. 49/2017-Central Tax dated 18th October, 2017 following documents are required to be submit by the supplier:

1. Acknowledgment by the jurisdictional Tax officer of the Export Promotion Capital Goods Authorisation holder that the said deemed export supplies have been received by the said Export Promotion Capital Goods Authorisation holder.

2. An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.

3. An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

Thus, if the supplier is claiming the refund then he is not eligible to collect the tax amount from the recipient.

Also, as per Rule 89 of CGST Rules, 2017 while filing the refund application, CA certificate is mandatory to submit if the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees

Q. 285 A registered composition scheme dealer purchase of goods from other states (inter state).but dealer same goods returns to selling supply dealer.
Question:
1.Composition scheme dealer purchase of goods returns procedure.
2.composition scheme dealer inter state sales transaction not eligible in gst act.

Ans. Composition dealers cannot make interstate sale transactions. However, he is eligible to purchase goods from other states.

Purchased Goods returned by the composition dealer will be shown under the Table 5B (CDNR) in the GSTR-4.