What is job work under GST?

As per Section 2 (68) of CGST Act, Job work means a process where a principal manufacturer of supplier sends raw materials or semi finished goods to a person to process, assemble or complete a particular job work.

When GST Registration is required for Job Worker?

If Job worker turnover exceeds the threshold limit of Rs.20 Lakhs (or Rs. 10 Lakhs for business located in the special category states), GST Registration must be done by Job worker.

Who is ultimate responsible to follow the procedures relating to Job Work under GST?

As per Section 143, The registered person is liable to follow the procedures whether he is principal manufacturer/Supplier or Job Worker. The unregistered person shall have no concern.

For which this section is not applicable?

It is not applicable to the goods exempted from GST or the taxable Goods are sent to the Job Worker with payment of Tax.

What are the procedure to be followed for goods being sent to Job Worker?

1. Goods shall be sent to Job worker through Deviliery Challan containing details such as the description of goods, quantity, value, GST Identification number and Job worker details.
2. Where the goods are sent from one job worker to another job worker, the principal or job worker may issue delivery challan indicating therein the quantity and description of goods.
3. The delivery challan shall be issued according to the provisions of Rule 55 of CGST Act. The delivery challan must be prepared in triplicate such as
        a. Original for Consignee
        b. Duplicate for Transporter
        c. Triplicate for Consigner
4. The Principal shall declare the place of business of job worker as his additional place of business if the Job Worker is unregistered.
Such declaration is not required if the Job Worker is registered GST Tax payer or where the Principal is engaged in the supply of goods as may be notified by the Commissioner. The declaration is not allowed if the job worker is in other state.

If E-Way bill is to be generated for Job worker under GST?

Before movements of goods by the Principal to Job Worker or by the registered Job Worker to the principal, E-Way Bill must be generated. There is no limit given for value of consignment for generating e-way bill.

GST Return to be filed for goods supplied for Job Work?

GST Return Form ITC-04 is to be filed by the Principal containing the details of challans in respect of goods sent to job worker or received from a job worker or sent one job worker to another job worker.

What is due date for filing GST Return Form ITC-04?

Turnover upto 5 Crore: Before 25th April beginning with financial year.
Turnover above 5 Crore: Before 25th April and 25th October for every half yearly basis.

What is the Time period for Inputs or Capital Goods to be brought back from the Job Worker?

The principal shall bring back, after completion of work, to his place of business without payment of tax or to other place from the place of Job Work with payment of tax or for export with or without payment of tax
Within One year or Three year for Inputs and Capital Goods respectively

What if any waste and scrap generated during the job work?

If any waste and scrap is generated during the job work, the job worker shall supply from his place of business on payment of tax if he is registered or by the principal if not registered.