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JOB WORK AND JOB WORKER UNDER GST REGIME

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GST-registration

Job Work under GST

What is job-work?

Section 2(68) of the CGST Act, 2017 defines job-work as
‘any treatment or process undertaken by a person on goods belonging to another registered person’.
The one who does the said job would be termed as ‘jobworker’.
The ownership of the goods does not transfer to the job-worker but it rests with the principal.
The jobworker is required to carry out the process specified by the principal on the goods.

Job-work sector constitutes a significant industry in Indian economy. It includes outsourced activities that may or may not culminate into manufacture.Many facilities, procedural concessions have been given to the job workers as well as the principal supplier who sends goods for job-work. The whole idea is to make the principal responsible for meeting compliances on behalf of the job-worker on the goods processed by him (job-worker), considering the fact that typically the job-workers are small persons who are unable to comply with the discrete provisions of the law.

JOB WORK PROCEDURE (Sec 143)

GST-job work jobworker

Principal may, under Intimation under Section 143(1) of the CGST / SGST Act of sending inputs / capital goods for job work without payment of GST, send any inputs or capital goods, without payment of tax or reversal of ITC, to a job worker for job-work and from there subsequently send to another job worker

AND SHALL

Bring back input within one year and capital goods within three years of their being sent out, to place of business without payment of tax< br /> Supply such inputs or capital goods, within one year and three years, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export
The principal shall not supply the goods from the place of business of a job worker unless he declares the place of business of the job-worker as his additional place of business

The principal shall not supply the goods from the place of business of a job worker unless he declares the place of business of the job-worker as his additional place of business

EXCEPTION

(i) where the job worker is registered person under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner

GST-GSTconsultantsPRINCIPAL shall be responsible for keeping proper accounts for inputs or capital goods

If INPUTS or CAPITAL GOODS are not received back by principal or are not supplied within a period of one year or three years of being sent out
It shall be deemed that such inputs or capital goods had been supplied to Job Worker on the day when the said inputs/Capital Goods were sent out
Treatment of Waste and Scrap
May be supplied by Job Worker on payment of Tax if he is registered.
Otherwise by the principal, if the job worker is not registered

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