Rakesh Enterprises, a registered person under the GST law, send inputs without payment of tax to one of its job worker, Sumit Agency, for carrying out certain operations on the goods. The goods were sent on 12th May, 202
CS Professional · Advanced Tax Laws · PYQS · December 2023
Rakesh Enterprises, a registered person under the GST law, send inputs without payment of tax to one of its job worker, Sumit Agency, for carrying out certain operations on the goods. The goods were sent on 12th May, 2022 and received by the job worker on 14th May, 2022. Sumit Agency carried out the job work but did not send back the inputs after processing. On the basis of above answer the following: (iv) What will be the consequence if the inputs were not returned back by Sumit Agency after job worker? Also state what action is required to be taken by Rakesh Enterprises in that case?
Answer & Explanation:
Where, input sent for job work is not received back or not supplied from the place of job worker within a period of one year of the date of being sent out, it shall be treated as Deemed supply by the principal to the job worker on the day when the said inputs were sent out. Rakesh Enterprises shall be liable to pay tax along with applicable interest by declaring the same as supply in GSTR1 in the concerned period.
Topics: GST
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