Redraft Rule 4 of GST Transition to allow Principal to declare stock at job worker – ICAI – GST Rules Issue 13

By | May 10, 2017
(Last Updated On: May 10, 2017)

Declaration of Stock held by Principal

Rule 2 of draft GST Transitional Provision Rules provides that every person to whom the provisions of Section 141. apply shall, within 60 days of the appointed day, submit an application electronically in FORM GST TRAN-1, specifying therein, the stock or, as the case may be, capital goods held by him on the appointed day details of stock or, as the case may be, capital goods held by him as a principal at the place/places of business of his agents/branch, separately agent-wise/branch-wise.

Issue

The Rule specifies for declaration of stock by principal under the provisions of Section 141 which contains the provisions related to job work. However, rule 2 does not provide for declaration of stocks in case of Job Work rather it provides for agents/branch etc. Due to this a principal, whose material is lying at Job worker premises would not be able to declare his stock under this rule.

Suggestion

It is suggested that in order to enable a principal to declare his stock in case of Job worker this rule be redrafted as follows: –

Every person to whom the provisions of Section 141 apply shall, within sixty days of the appointed day, submit an intimation electronically in FORM GST TRAN-1, specifying therein, the stock or, as the case may be, capital goods held by him on the appointed day details of stock or, as the case may be, capital goods held by him as a principal at the place/places of business of his Job workers, agents/branch, separately agent-wise/branch-wise.

Source ICAI Suggestions on GST Rules Submitted to Govt of India

Leave a Reply

Your email address will not be published.