Question1: We are registered under GST
System as a Manufacture of Textiles and Textiles Articles, Textiles Chemicals
and Auxiliary Chemicals and also service Provider under the GST .
We request you kindly guide in following cases for the valuation patterns
prescribed as per the Provisions of GST law in existence.
1. Captive Consumption of intermediate products such as POY of Ch. 5402 for
manufacture of Other fished goods.
2. Supply of Polyester yarn or Fabrics to Group Companies/Sister Concerns/Inter
connected Undertakings.
3. Supply of goods to open market on payment of GST.
4. Supply of raw materials procured from open market and sold to group company
on payment of GST . Kindly note that we procure Polyester Chips (Ch. 3907) from
open market under cover of GST Tax Invoice and supply the same on same purchase
price or sometimes, we add some expenses such as transportation , packing &
handling etc. to our group Company.
5. Apart of this we supply service of lease rent of a complete unit with all the
facilities such as land, building, machineries etc. to our group company i.e.
Services of immovable properties and changing GST on such service supply at the
agreed rent per month . Please also clarify the ITC of such GST paid by us can
be availed as Cenvat Credit by the recipient company to whom we supply such
services .
Answer: Point wise reply is as follow
1 There is no provision relating to captive consumption no tax is to be paid but
you have to maintain record for the purpose of audit and assessment
Tax is to be paid only on supply even if made to the distinct person.
2 Tax is to be paid if there are different registration as per section 7 of CGST
Act.
3 Tax is to be paid on transaction value under section 15 read with Rule 27.
4 Tax is to paid as per Rule 28 of CGST Rules If you are clearing at same price
then you are not doing value addition this may create problem ,Please follow
Rule 28.
5 Section 17(5) which restrict credit and block ITC is not applicable So credit
is available
(Reply dt.17/01/2018)