Conditions and restrictions in respect of inputs and capital goods sent to the job worker - GST Ready Reckoner - GST

Conditions and restrictions in respect of inputs and capital goods sent to the job worker When and who Issue Challan while transferring goods for job work The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker, and where the goods are sent from one job worker to another job worker. The challan may be issued either by the principal or the job worker sending the goods to another job worker: The challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal: The challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal. [ Rule 45(1) ] Content of challan The challan issued by the principal to the job worker shall contain the details specified in rule 55 . [ For more details refer this chapter ] [ Rule 45(2) ] Time limit for furnishing the detail of challan in FORM GST ITC-04 The details of challans in respect of goods dispatched to a job worker or received from a job worker during a specified period shall be included in FORM GST ITC-04 furnished for that period on or before the 25th day of the month succeeding the said period or within such further period as may be extended by the Commissioner by a notification in this behalf. Specified period shall mean .- (a) the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover during the immediately preceding financial year exceeds five crore rupees; and (b) a financial year in any other case. Any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. [ Rule 45(3) ] Goods sent for Job work not return Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143 , it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest. [ Rule 45(4) ]