JOB WORK IN GST

Job-work means any treatment or process undertaken by a person on goods belonging to another
registered person.

Job-worker is a person who does job work. it is supply of service in GST.

Scope: Inputs, intermediary goods and capital goods can be sent without paying GST to a job-worker
for job-work and from there subsequently sent to another job worker.

ITC: The principal can avail ITC on the inputs and capital goods sent to the job-worker. However he is
not required to reverse the ITC availed on inputs or capital goods dispatched to job-worker. Further
goods can be directly dispatched from the supplier to job-worker’s premises.

Invoice: Goods have to be sent under the cover of Challan which shall contain the details specified in
Rule 55 of CGST Act 2017.

1. Date and number of the delivery channel

2. Name, address and goods and services tax Identification no of the consigner, if registered.

3. Name, address and goods and services tax Identification number or Unique Identity Number of
the consignee, if registered.

4. Harmonized System of Nomenclature Code and Description of goods.5. Quantity 6. Taxable Value.

7. Tax rate and tax amount –CGST, STST, IGST OR UTT OR CESS. Where transportation is for supply
to the consignee 8.Place of supply in case of inter-state movement.9. Signature.

Time Limit:

1. Said Inputs after completion brought back within one year.

2. The capital goods other than moulds and dies, jigs and fixtures or tools are required to
brought back within Three Years.

3. Where the capital goods are sent directly to a job-worker the period of three years counted
from the date of receipt of the capital goods by the job-worker.

4. The inputs or capital goods other than moulds, dies,jigs and fixtures or tools , after
completion of the job-work or otherwise , can be sent out within one year and three years
respectively from the place of the job-worker on payment of tax with in India. With or
without payment of tax for export.

If the inputs, capital goods are not received back or not exported within the prescribed period
it would be deemed supplies. In such case challan will be treated as invoice.

Return: The details of challan of such goods dispatched to a job-worker or received from a job-
worker during the tax period shall include in FORM GSTR-1.

Any waste and scrap generated during the job-work may be supplied by the job-worker from his
place on payment of tax, if the job-worker is registered or by a principal, if the job worker is not
registered. The responsibility to keeping proper records for the inputs or capital goods shall lie with
the Principal.