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TMI BlogGST Provisions on Goods send for Job workX X X X Extracts X X X X X X X X Extracts X X X X ..... GST Provisions on Goods send for Job work - By: - Rajeev Jain - Goods and Services Tax - GST - Dated:- 8-4-2023 - - Meaning of job work? Job work means processing or working on raw materials or semi-finished goods supplied by the principal manufacturer to the job worker. This is to complete a part or whole of the process which results in the manufacture or finishing of an article or any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther essential operation. The job workers send back the article to the principal manufacturer. As per GST Act, job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person doing the job work is called job worker. It is to be noted that value of goods sent by the principal will not be included in the aggregate turnover of the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered job worker. ITC on goods sent for job work The principal manufacturer will be allowed to take credit of tax paid on the purchase of goods sent on job work subject to the following conditions: 1. Goods can be sent to job worker: From principal s place of business Directly from the place of supply of the supplier of such goods ITC will be allowed in both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cases. 2. Effective date for goods sent depends on place of business: Sent from principal s place of business- Date of goods sent out Send directly from the place of supply of the supplier of such goods- Date of receipt by job worker Here, Effective date is very important because it will help to determine the point of taxation if the goods are not returned back within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specified time. 3. Specified Time Limit: The goods sent must be received back by the principal manufacture within the following period: Capital Goods- 3 years Input Goods- 1 year 4. In case goods are not received back within the period mentioned above, such goods will be treated as supply from the effective date and tax will be payable by the prinicpal. Docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts, Accounts Records to be maintained: The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. Challan All goods sent for job work must be accompanied by a challan. The challan will be issued by the principal. It will be issued even for the inputs or capital goods sent directly to the job-worker. The details of ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allans must be shown in FORM GSTR-1 . Details of challans must also be filed through Form GST ITC 04 . The challan issued must include the following particulars: Date and number of the delivery challan Name, address and GSTIN of the consigner and consignee HSN code, description and quantity of goods Taxable value, tax rate, tax amount- CGST, SGST, IGST, UTGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separately Place of supply and signature Form ITC-04 FORM GST ITC-04 must be submitted by the principal every quarter. He must include the details of challans in respect of the following- Goods dispatched to a job worker or Received from a job worker or Sent from one job worker to another It must be furnished on or before 25 th day of the month succe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding the quarter. For example, for Oct-Dec quarter, the due date is 25 th Jan. With effect from 1st October 2021, the frequency of filing the ITC-04 form has been revised through the Central Tax notification number 35/2021 dated 24th September 2021, as follows- (1) Those with AATO more than Rs.5 crore Half-yearly from April-September- due on 25th October and October-March due on 25th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April. (2) Those with AATO up to Rs.5 crore Yearly from FY 2021-22 due on 25th April. ----- The author can be reached at [email protected] - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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