QUESTION

Please advice and send notification about below quarry 1 I send goods for job work purpose on delivery Chelan ( GST Applicable ?) 2. I received goods after completion of job-work goods return (GST Applicable ?) 3. After complete job work than party charge his service bill ( Liable to E-way bill ? ) 4. Job work transaction liable to file GST ITC - 04 ? 5. Which condition i have cancel my e-way bill ? 6. I sold my old business purpose commercial vehicle than which percent tax liable ? GST Applicable ? I raised my invoice about that ? when i purchase than i take claim credit GST.

ANSWER
Fact of the Case: Applicability, Documentation and Procedure for Job Work

Law Applicable:

Rule 138 of CGST Rules

(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees'
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,

Provided also that where goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment:

(9) Where an e-way bill has been generated under this rule , but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill:

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B:

Circular No.38/12/2018

9.2 Legal provisions: As mentioned earlier, section 143 of the CGST Act provides that the inputs/capital goods may be sent for job work without payment of tax and unless they are brought back by the principal, or supplied from the place of business / premises of the job worker within a period of one / three years, as the case may be, it would be deemed that such inputs or capital goods (other than moulds and dies, jigs and fixtures or tools) have been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out. Further, the job worker is liable to pay GST on the supply of job work services.

Rule 45 of CGST Rules
(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter or within such further period as may be extended by the Commissioner by a notification in this behalf:

Notification No. 8/2018 -Central Tax (Rate)

2. This notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.

Interpretation: The Performa of Challan is given in Rule 55. It contains information relating to GST also. So you will mention GST in challan. It is a information provided only for the purpose of control. Please note that it is not a tax invoice so tax is not to be deposited but only to be mentioned.

The GST is applicable on service. For e.g. value of goods is Rs 100/-, Job work charges Rs 10/-. Tax is to be paid @ 18% (normal rate) for concessional rate please refer notification. Goods will be send mentioning value Rs 100/- on challan. the goods will be returned mentioning value Rs 110/- on challan ( Value of Goods + Job work charges). Tax invoice will be raised for Rs 10/- + Tax.

So far as generation of E Way Bill is concerned it is required even for movement of goods of consignment value exceeding fifty thousand rupees for reason other than supply. Also in case of job work if principal and job worker are located in different states then E Way Bill is mandatory irrespective of the value of consignment.

E way bill is to be raised for sending of material & receiving back. As per E Way Bill Rules the value of material will be considered Rs 100/- for sending & Rs 110/- for receiving.

As per E Way Bill Rules, it can only be cancelled within twenty four hours of generation if goods are either not transported or are not transported as per the details furnished in the e-way bill. But if the E Way bill is verified by PO in Transit then it cannot be cancelled.

Principal is required to file ITC-04 to provide details of all transaction of sending and receiving back of goods from job worker as per Rule 45.

SALE OF OLD VEHICLE

In your case, you had claimed ITC on the motor vehicle, therefore the concessional rate as per aforementioned Notification will not be applicable on your transaction and normal tax rate will be applicable.

Conclusion:
1. GST will only be mentioned on challan but tax is not required to be deposited.
2. The job worker is liable to charge GST on job work charges.
3. E way bill is to be raised for sending of material & receiving back. As per E Way Bill Rules the value of material will be considered Rs 100/- for sending & Rs 110/- (Material + Job work charges) for receiving.
4. The details of challans in respect of goods dispatched to a job worker or received from a job worker during a quarter shall be provided in FORM GST ITC-04.
5. If goods are either not transported or are not transported as per the details furnished in the e-way bill, only then e-way bill may be cancelled electronically on the common portal within twenty four hours of generation.
6.Concessional Rate will not be applicable and tax would be charged at normal rate.