Question 3 - Can a registered taxable person send goods without payment of tax to his job-worker? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 3. Can a registered taxable person send goods without payment of tax to his job-worker? Ans. Yes. Section 43A of the MGL provides that the registered taxable person (principal) can send the taxable goods to a job-worker for job-work without payment of tax. He can further send the goods from one job-worker to another job-worker and so on subject to certain condition. It may be noted that provisions of Section 43A are not applicable if non-taxable or exempted goods are proposed to be sent for job-work.