Job work – Ghosts of Excise regime haunting again?
Article 82 – “Job work – Ghosts of Excise regime haunting again?”
The term ‘manufacture’ faced considerable litigation under Excise regime for obvious reasons. This Article highlights the relevance of term ‘manufacture’ under GST regime, especially in case of job work services. This will have an impact on the Services Accounting Code, GST rate and compliances related to job work services. Recently, this subject has gained attention with multiple Advance Rulings dealing with the issue, most of which have failed to comprehensively cover all aspects.
As it is an up-and-coming issue, taxpayers need to revisit their transactions and correct the GST treatment and related compliances. The department is likely to contend higher GST rate, at least on some job work services.
Through this piece of writing, our Managing Associate, Ms. Aasmee Mangla and Associate, Ms. Simran Arora have examined and analyzed the issue in detail and suggested the way forward for taxpayers.
Please click on the below link to read our latest article titled “Job work – Ghosts of Excise regime haunting again?” on the issue.