Job Work under GST: Sec 2(68) “Job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. Thus Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called ‘job worker’ and the person to whom the goods belong is called ‘principal’Section 2 (88) – Definition of Principal : “principal” means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both.
Job Work under GSTRegistration of place of business of Job worker as Additional place of business
by Principal. If the principal intends to supply job worked inputs and/or capital goods from the place of job worker itself, the principal will have to declare the place of business of the job-worker as his additional place of business in case the job worker is not registered.
Intimation to department for sending the goods for job work.Principal sending goods for job work will have to intimate to the department about his intention to send inputs for job work.
Conditions and restrictions for claiming Input Credit on Job work
- Date and number of the delivery challan
- Name, address and GSTIN of the consigner and consignee
- HSN code, description and quantity of goods
- Taxable value, tax rate, tax amount- CGST, SGST, IGST, UTT separately -Place of supply and signature
Removal of goods to job worker without payment of duty by Principal.The GST law suspends the levy of GST for goods sent for job work. The input goods are required to be returned within one year and the capital goods are required to be returned within three years of the date of sending it for job work. However, in the case of capital goods in the nature of moulds, dyes, jigs, fixtures or tools, it is not necessary to receive back these goods.
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