Provisions for supply of Goods to Job Worker under CGST Act,2017
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 8-6-2017
First of all, one need to understand the definition of Job work under Revised GST law . After that it will be easier to understand the provision relating to supply of goods to job worker . Goods either input or capital goods can be directly send to Job worker and supply of input can be directly make from job worker' place subject to the following provisions provided in Section- 143 of the Revised GST Law.
Definition as per Section – 2[68] of Revised MGL.
“JOB WORK” means any treatment or process by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly”
It means the provision of job work shall be applicable if the goods are received from Registered Person. Otherwise these provision of S. 143 is not applicable.
Provision for supply of goods to Job worker
1. Registered Pe
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otified by commissioner in this behalf.
2. The onus of prove for accountability of input and or capital goods shall be of Principal.
3. Where the inputs sent for job work are not return to principal after job work or otherwise within period of one year being sent out , it shall be treated as supply to job worker on the day of input sent for job work.
4. Where the capital goods other than mould and dies, jigs and fixture or tool, sent for job work are not return to principal after job work or otherwise within period of three year of being sent out , it shall be treated as supply to job worker on the day of capital goods sent for job work.
5. Job worker may supply the waste or scrap generated from job work directly from his place of business on payment of taxes, if he is registered, otherwise by principal, if job worker is not registered.
Related Provisions
Section
Particulars
Remarks
Sec. 2[68]
Definition
Undertaking any treatment or process
Sec. 19
Taking ITC In respect o
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ed person who send goods for job work. In other word , these provision are not applicable to exempted or non taxable goods.
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon.
About the Author:
Author is practicing chartered accountant in Gurgaon and having specialization in Service Tax and Haryana VAT. He can be reached at sanjeev.singhal@skaca.in. WWW. skaca.in
Reply By JAYARAMAN RAMAMURTHY as =
Sir,
kindly clarify;
whether ITC is available if physical movement of the tools/ dies is not taking place ie the component supplier who makes his own tools (paid by his customer) in his own premiss and makes components out of the tools to his customer.
ex; A is the OE manufacturer – gets his components from B (his vendor). A
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