Atul Works Corp., unregistered person in the State of Haryana, is a job worker for Modern Products Limited, registered in Haryana. In the month of…

CA Final · Indirect Tax Laws · PYQS · January 2026
Atul Works Corp., unregistered person in the State of Haryana, is a job worker for Modern Products Limited, registered in Haryana. In the month of April, 2025, it raised bill of 60,000 as job work charges for the goods which were sold by Modern Products Limited for 4,00,000. Further, waste generated in job work process was sold by Modern Products Limited for 50,000. Details of inputs and capital goods stock with Atul Works Corp. on 30.04.2025 (out of goods received from Modern Products Limited) is as below: A. Machine sent by machine manufacturer directly to Atul Works Corp. on behalf of Modern Products Limited on 18.04.2022 and the same was received by Atul Works Corp. on 02.05.2022 10,00,000 B. Dies and tools sent by Modern Products Limited on 07.04.2022 and received on the same day. 5,00,000 C. Inputs sent by Modern Products Limited on 27.04.2024 received by Atul Works Corp. on 03.05.2024 3,00,000 Based on the above information you are required to comment with detailed explanation/reasons on: (i) How Modern Products Limited can supply goods directly from the premises of Atul Works Corp.? (ii) Determine value of supply to be declared by Modern Products Limited in its Form GSTR-1 for the month of April, 2025. (iii) If Machine is required for further job works, then what is the maximum extension of time that can be allowed and who can allow it?

Suggested Answer and Working Notes:

Answer (b) (i) Modern Products Limited can supply goods directly from the premises of Atul Works Corp. (job worker) after declaring premises of the job-worker as his additional place of business in his GST registration. (ii) Computation of value of supply to be declared in Form GSTR-1 of Modern Products Limited Particulars Amount (₹) Goods sold after job work 4,00,000 Sale of waste generated from job work 50,000 Machine directly sent by manufacturer to job worker [Not a supply since the 3 years' time limit from the date of receipt of machine by the job worker has not yet lapsed.] - Dies and tools [Not a supply since the provision of return of goods is not applicable in case of moulds and dies, jigs and fixtures or tools supplied by the principal to job worker.] - Inputs [Deemed as supply since inputs have not been received back within 1 year from the date of sending out to the job worker.] 3,00,000 Total value of supply 7,50,000 (iii) Maximum extension of time allowed is 2 years by the Commissioner.

Topics: Job Work

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