Question

We are the manufacturer of branded Ice Cream, we are sending some capital goods for repair from UP to Delhi through returnable gate pass (Delivery Challan). My Questions:
1 Whether repair and maintenance is covered under Job Work??
2. and what id ITC 04 form under GSt and when it will be filed
3. We sent some SNF and FAT to the job worker for converting the same into Butter or SMP, whether this is Job work? if yes pleaee what type of formalities should be done .
4. We purchased delivery vehicle (Truck chassis) from Chennai to our plant at Asansol (WB) but supplier send this chassis directly to Kolkata at fibricator location for fitting of boady, fabricator issued two bills one for material and second for labour charges to our Asansol unit after this fabricator sent this chassis to Delhi at refrigeration supplier for fitting refrigeration unit over this truck. Whether this process are covered under job work or not?

Answer

In GST "Job Work means any treatment or process undertaken by a person on goods belonging to another registered person."

1 & 3. In view of above definition Repair and maintenance on capital goods and also conversion of SNF and FAT into Butter or SMP are covered under job work. For detailed job work procedure and formalities to be done refer Circular 38/12/2018 dt. 26.03.2018 enclosed herewith.

2. ITC 04 is record of challans in respect of goods dispatched to a job worker or received from a job worker. It is filed on quarterly basis on or before the twenty-fifth day of the month succeeding the said quarter.

However the due date of filing ITC 04 for the period from July, 2017 to June, 2018 has been extended till 30th September 2018.

4. The process of fitting truck body and refrigeration on chasis is job work or not depends on situation which is clarified through Circular 52/26/2018-GST. Relevant part of circular is reproduced below for your reference:
Applicable GST rate for bus body building activity: Representations have been received seeking clarifications on GST rates on the activity of bus body building. The doubts have arisen on account of the fact that while GST applicable on job work services is 18%, the supply of motor vehicles attracts GST @ 28%.

12.2 Buses [motor vehicles for the transport of ten or more persons, including the driver] fall under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations:
a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus.
b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work).

12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. (Reply dt. 13/10/2018)