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TMI BlogJob Work of Jewellery and Precious Metals Under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Job Work of Jewellery and Precious Metals Under GST X X X X Extracts X X X X X X X X Extracts X X X X ..... e principal can claim ITC on GST paid for job work services, provided the goods are used for business purposes and meet eligibility criteria under the GST Act. * Valuation: * GST is calculated on the value of services provided by the job worker, which includes the job work charges agreed upon. Movement of Goods for Job Work * Without Payment of GST: * Under Section 143 of the CGST Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, goods can be sent to the job worker without GST if: * Inputs are returned to the principal's premises within one year, or capital goods within three years. * Alternatively, goods may be supplied directly from the job worker's premises if the principal declares the job worker's premises as an additional place of business in their GST registration. * Documentation: * A delivery challan m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust accompany goods moved for job work, containing: * Description of goods * Quantity * Value * GSTIN of the principal * Purpose of movement (e.g., job work) Compliance Requirements for Job Work in Jewellery * Registration: * Job workers must register under GST if their aggregate turnover exceeds the applicable threshold (₹40 lakh/₹20 lakh, depending on the state). * R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturns Filing: * The principal must report the movement of goods sent and received for job work in Form GST ITC-04. * Due Date for GST ITC-04 Filing: * Until September 2021: Quarterly filing, due by the 25th day of the succeeding month. * From October 2021: * Annual Aggregate Turnover > ₹5 crore: Half-yearly filing (April-September: due by 25th October, October-March: due by 25th A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril). * Annual Aggregate Turnover ≤ ₹5 crore: Yearly filing (due by 25th April for the financial year). Key Considerations * Waste and Scrap: * Waste or scrap generated during job work belongs to the principal unless agreed otherwise. Its disposal must comply with GST provisions, and tax liability may arise. * E-Way Bill Requirement: * As per Notification No. CGST 38/2023, dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 4th August 2023, an e-way bill is required for transporting gold and precious metals valued at ₹2 lakh or more within a state if notified by respective state/UT laws. * Direct Supply from Job Worker's Premises: * Goods can be supplied directly from the job worker's premises to customers without returning to the principal if the job worker's premises are included in the principal's GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration. Challenges in the Jewellery Sector * High-Value Goods: * The high value of jewellery necessitates precise documentation and enhanced security during transit. * Frequent Law Amendments: * The jewellery industry must stay updated with frequent changes in GST rules to ensure compliance. Conclusion Job work plays a vital role in the jewellery and precious metals sector. Ensur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing GST compliance, including proper documentation and adherence to timelines, is critical to avoid penalties and operational disruptions. Businesses should consider consulting a GST expert for guidance on complex issues or ambiguities to manage their GST obligations effectively. X X X X Extracts X X X X X X X X Extracts X X X X
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