Important Points

SECTION : Job Work

DESCRIPTION
  • Lesson Objectives


    On completion of this lesson, you will be able to understand:


    ·        Supply of goods from Premises

    ·        Conditions for Supply

    ·       Aggregate Turnover of Job Worker

    ·       Registration by Job Worker

    ·        Waste Clearing and Intermediate Product

     

     

    Please go through Second Video of the Chapter 9.

    Job Worker – Part II

     

    Supply of goods from Job Worker’s premises

    The principal can supply the goods directly from the premises of the job-worker without bringing it back to his own premises. He does not need to bring it back to his own premises.

     

    After processing of goods, the job-worker may clear the goods to-

    (i)               Another job-worker for further processing

    (ii)            Dispatch the goods to any of the place of business of the principal without payment of tax

    (iii)          Remove the goods on payment of tax within India or without payment of tax for export outside India on fulfilment of conditions.


    Conditions

    Any of these conditions should be satisfied for supplying the goods from the Job Worker’s premises directly.

     

    ·        The principal should have declared the premises of such job-worker as his additional place of business or

    ·        Job-worker is a registered person or

    ·        Goods have been notified as per GST Law.

     

    Aggregate Turnover of Job Worker

    Where the goods of principal directly supplied from the job-worker’s premises, it will not be included in the aggregate turnover of the job worker. It will be included in the aggregate turnover of the principal.

     

     

    Registration by Job Worker

    A Job-worker would be a Supplier of services. He will be required to obtain registration if his aggregate turnover exceeds the prescribed threshold as specified in GST Law.

     

    Exemptions

    The provisions relating to job-work are applicable only when registered taxable person intends to send taxable goods.

     

    In other words, these provisions are not applicable to

    ·        Exempted or Non-taxable goods or

    ·        When the sender is a person other than registered taxable person.

     

    Waste Clearing

    Waste generated at the premises of the job-worker may be supplied directly by the registered job-worker from his place of business on payment of tax or such waste may be cleared by the principal, in case the job-worker is not registered.

    Intermediate Product

    As per the explanation provided in Section 143 of the CGST Act, 2017, where certain process is carried out on the input before removal of the same to the job worker, such product after carrying out the process is to be referred as the intermediate product. Such intermediate product can also be removed without the payment of tax. Therefore, both input and intermediate product can be cleared without payment of duty to job-worker.

     


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