GST – Started By: – Yatin Bhopi – Dated:- 13-2-2019 Last Replied Date:- 15-2-2019 – Dear expert,We are manufactures of chemicals. We sale our products in drums as well as in tanker. Now our drum filling machine is out of service. To complete the customer commitments, we wish to do this durm filling activity with job worker who is registered under GST.my query is, whether sending finished goods to the job worker for filling drums construed as a job work activity? can we follow job work procedure? – Reply By CASeetharaman KC – The Reply = 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. This is the definition of Job Work given in clause (68) of section 2 of the CGST Act, 2017. The above activity would fall under job work as filling drums could be classified as a process. Please go through Circular no 38/12/2018 dated 26th March 2018 which gives most of the clarific
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aging services of goods for others, be applicable in the instant case?This query is to enrich my knowledge, through your guidance.Thanks,With due regards – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = I endorse the views of the experts. – Reply By KASTURI SETHI – The Reply = Sh.Alkesh Jani Ji, Pl. refer to a query dated 13.2.19 (Serial No.3 above). It is pertinent to know what is packaging service and what is packing service and what is the difference between both activities. There is a lot of difference between the two. It is amply clear from legal definition of 'packing' and 'Packaging'. If we see the definition of packaging service provided in the erstwhile Section 65(76b) of the Act read with Board's Instruction under F.No.B1/6/2005-TRU dated 27.7.2005 and the present definition of packaging service under GST, the activity of filling drum does not fall under packaging service. It is packing container. Job work procedure can be followed. – Reply By Alkesh Jan
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business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. Hence even though the material supplied by you is a finished product the same is an input for the job worker as without filling the drums the finished product does not come into existence. As such there is a clear provision where the goods can even be supplied from the premises of the job worker. Point to be noted here is that the Principal would be ultimately responsible to maintain proper accounts and ensure that proper duty has been paid on the final product – Reply By KASTURI SETHI – The Reply = Goods cannot be called finished goods until and unless these are packed/packaged properly so that these become marketable. Goods are neither safe nor marketable without packing. Packing is also process of manufacture. Can you sell /supply the goods without packing container ?See the definition of job w
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