Section 143 (5) – Any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered. The term Job-work itself explains the meaning. 1158(E), dated the 15th September, 2017 as amended from time to time. Job work in GST 1. 32/2017 -Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. h) Waste and Scrap. Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise... 3. Therefore the GST taxpayer on whose goods, the job work process is done is the “Principal”. Such declaration is not required if the Job Worker is registered under section 25 or where the principal is engaged in the supply of such goods as may be notified by the Commissioner. Who is holding the risk relating to such goods while the job-work is being carried out? I am a job worker (silver smith), can i need to take GST registration under composition scheme, if so what is the tax rate applicable and on what value, should i carry E-way bill while carrying goods from one place to another which is more than 150kms. However, what if the principal is unregistered? Section 143 requires from the Principal to intimate each supply made to Job Worker, supply made to another Job Worker and goods returned by Job Worker to the Principal. Post a comment. 11/2017 – Central Tax (Rate) at serial no.26 Heading 9988 ( Manufacturing services on physical inputs (goods) owned by others ) is reproduced as under: (b) textiles and textile products falling under Chapters 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (c) all products other than diamonds falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (d) printing of books (including Braille books), journals and periodicals; (da) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent or Nil; (e) processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). f) Time limit for returning goods sent for job work. Inputs, semi-finished goods or capital goods may be sent to the Job Worker. All About Job Work Under GST Regime. / ~What Is JOB WORKER In GST? (68) “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be … What is the definition of capital goods and input goods as per GST? However, use of some small and low value supplies by the job worker will not convert it into the activity of contract manufacturing. Job work sector constitutes a significant industry in Indian economy. Job Work under GST : Provisions you should know. Wrong classification could result in tax implications as the rates of tax are different under different heads. The term ‘Job Work’ is very important subject under the GST. Section 2(61) of the Model CGST/SGST law provides that "job work" means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression "job worker" shall be construed accordingly. What documents are required while shipping the finished goods to customer from job site apart from tax invoice? Case : Principal is supplying goods to the customer directly from the premises of the Jobworker. It is processing of goods supplied by the principal. The answer is no. It is immaterial to whom you send the goods. MEANING OF JOB WORK UNDER GST. For example, big shoe manufacturers (principal) send out the half-made shoes (upper part) to smaller manufacturers (job worker) to fit in the soles. Rule 55 (2) requires to prepare the challan in triplicate. All Rights Reserved. The ownership of the goods does not transfer to the job-worker but it … If the inputs are not received back by 13-04-2019 then it shall be deemed that such     inputs had been supplied by the principal to the Job Worker on 14-04-2018 when     the inputs were sent out. According to facts it should be job work. The person other than registered person shall have no concern about this section. Before we discuss the implications of above definition, it is important to understand that the activity of sending the goods for job-worker and receiving the same back have been given a tax pass-through in GST. Subscribe to this blog. While returning the goods to the Principal by the Job Worker or goods sent to another Job Worker by the Job Worker, the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods. Introduction- GST ON JOB WORK. As per section 2 (68), Job work means any treatment or process undertaken by a person (commonly known as job worker) on goods belonging to another registered person (owner of the goods). Job-work sector constitutes a significant industry in Indian economy. ( iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), 2[(ib), (ic), (id),] (ii), (iia) and (iii) above. Section 143 is applicable only to Taxable Goods. 3. Mr. B sends his car for regular service. Job Work Under GST : Job worker to be required to obtain registration if his aggregate turnover exceeds the prescribed threshold and to know more check here. (b) printing of all goods falling under Chapter 48 or 49,   which attract CGST @ 6 per cent. Returns be filed normal as 3B and GSTR 1. Follow by Email meaning and concept of job work in GST Get link; Facebook; Twitter; Pinterest; Email; Other Apps - October 16, 2017 Get link; Facebook; Twitter; Pinterest; Email; Other Apps; Comments. (c) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent or Nil. 3. This is necessary as the job-workers are generally an unorganized and scattered class. All Rights Reserved. Explanation – For the purposes of this entry, the term “bus body building” shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975. The term Job-work itself explains the meaning. The work may be in the initial process, intermediate process, assembly, packing or any other completion process. Job work means any treatment or process or work on the goods owned by another person. 2. One of our client has hired electrician at his factory and electrician is providing wiring services to the machine at our client’s factory. He has sent material for Job work to MP. The impact of GST on Job work transactions can be better understood, only if the existing taxation aspects qua such transactions are first noted. Such wide inclusions raises the following important issues: Mr. A sends his machine for cleaning and painting to prevent it from rusting. Sec.2(19) “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business; I have one query. Goods shall be sent to the Job Worker through a challan. (b) printing of books (including Braille books), journals and periodicals. The word ‘any’ gives a wide ambit to the terms ‘treatment’ and ‘process’. 4. gst return in hindi - जीएसटी में रजिस्टर्ड पर्सन के स्टेटस के हिसाब से अलग -अलग gst Return के फॉर्म्स निर्धारित किये गए है। gstr 1 उन पर्सन के .. gstr 3b Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), ‘Job-work’ in GST – Meaning and implications, Job-work under GST v/s repair and maintenance, Job-work under GST v/s contract manufacturing, Job-work under GST v/s supply of manpower, 4. The resultant goods could also be a variation of … a) Meaning & nature of job work. Section 2 (68) of the CGST Act defines Job Work as “”job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.”. ~GST Mein JOB WORK … Sign In; Sign Up; FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE. The term Job-work itself explains the meaning. In case the goods after carrying out the job work are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker. Section 2(68) of the CGST Act, 2017 defines job work as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. Sir , Join our newsletter to stay updated on Taxation and Corporate Law. Concept of Job Work. It is to be noted that if the Job work is not carried on the goods belonging to a registered taxable person i.e. Your email address will not be published. As per the GST Act, job work under GST means any treatment or process undertaken by a person on goods belonging to another registered person. 2. It is the responsibility of the principal to include the details of all the challans relating to goods sent by him to one or more job worker or from one job worker to another and its return therefrom. Conditions for Supply from the Place of Job Worker. b) Registration under GST. 5. 6% or 9% Thank you. The goods sent for job work maybe raw material, component parts, semi finished goods and even finished goods. 2. The one who does the said job would be termed as ‘job worker’. 1. 11/2017 – Central Tax (Rate), TCS on Sale of Goods | Section 206C(1H) | Income Tax Act, Output Tax Liability under GST not paid in Cash, Reverse Charge Liability under GST Not Paid In 2018-19, Supply of Old and Used Fixed Assets under GST, Credit Note Vs Discount | Section 15(3) | CGST Act 2017, No ITC on permanent hall or pandal or shamiana created for functions, AAR bound to pronounce ruling within 90 days of receipt of application, Stadiometer & Infantometer falls under tariff item 90189019, Section 17(5)(h) bars credit of ITC on goods supplied in marketing events, GST Rate on inter-state supply of parts of railways in unassembled condition, GST on Independent Consultancy Services to Public Works Department, GST on supply of water by Society (RWA) to its members, Section 98(6): AAR bound to dispose Application within 90 days of receipt, Seat adjuster as accessories to motor vehicle falls under chapter heading 8708, No ITC on goods used for permanent beneficial enjoyment of building, PP non-woven bags falls under Heading 3923, GST on Starter Ring Gear, Universal joint Cross & Starter Ring Gear Flywheel Assembly, No ITC on inputs/ capital goods for creation of warehouse for renting, ITC on pre-engineered structure used in construction of warehouses, Intermediary services not exempt under GST Notification 12/2017 CT (Rate), Join Online Live GST Certification Course by CA Raman Singla, New Process to Submit Response for Income Tax Refund, Webinar on Career Growth in GST related Litigation Management, Empanelment as Concurrent Auditor with IDBI Bank, Extend timelines for filings by LLPs: ICSI, Goods and Service Tax (GST) Registration & Requirements, Uttarakhand HC directs CBDT to consider representation on due date extension, All India Protest Call against GST/Income Tax Issues by WMTPA, (i) Services by way of job work in relation to—, (ia) Services by way of job work in relation to—, (ib) Services by way of job work in relation to, (ic) Services by way of job work in relation to. Principal is in MH. (ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) respectively; (f) all food and food products falling under Chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), except dog and cat food put up for retail sale falling under tariff item 2309 10 00 of the said Chapter; (h) manufacture of clay bricks falling under tariff item 6901 00 10 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); Explanation.—The expression “handicraft goods” shall have the same meaning as assigned to it in the notification No. No other requirement from the side of Job worker and customer. 1. sir, It is processing of goods supplied by the principal. He is issuing normal Tax Invoice for the Job charges & charging GST accordingly. But if the job worker is not registered then such waste and scrap shall be supplied by the Principal. 2. A few spare parts are used in such service of the car. This phrase is one of the most important parts of the definition. Section 143 is applicable only to the Registered Person. Job-work sector constitutes a significant industry in Indian economy. 3. To reach to me for any suggestions, rectifications, amendments and/or further clarifications in regard of this article my email address is [email protected]. It is processing of goods supplied by the principal. The Principal shall declare the place of business of the job worker as his additional place of business if the Job Worker is unregistered. It includes outsourced activities that may or may not culminate into manufacture. State GST laws also prescribe identical provisions in relation to job work. IRN known as Invoice Reference Number is a unique invoice number generated by the Invoice Register Portal (IRP) on uploading the invoice electronically. E-Way Bill is required to be generated before movement of goods by the Principal to the Job Worker or by the registered Job Worker to the Principal or to the another Job Worker. It is processing of goods supplied by the principal. To understand the answer, we need to closely examine the understanding between the parties, following being some of the important considerations –. ~What is a Significance Of JOB WORK? Whether material sent from one unit for further processing (which is registered in GST) to another unit within state having same PAN but another registration number in GST may be treated job work ? The same detail be filled in return ITC-04. Will it change the nature of the activity? The responsibility for keeping proper accounts for the inputs or capital goods sent to the Job Worker and the same returned back from the Job Worker or supplied made from the place of Job Worker shall be lie with the principal. This definition is much wider than the one given in Notification No. For the same reason, return of goods from job-worker also will not be taxable. The term Job-work itself explains the meaning. The author may be reached at [email protected]. It includes outsourced activities that may or may not culminate into manufacture. Principal’s address is that of Union Territory and Jobworker & customer are registered in Maharashtra. Here, it makes it mandatory for the principal to be a registered person to make this activity fall within the definition of ‘job-work’. ~What Is JOB WORK In GST? In other words, doing work or treatment on goods and materials – to transfer or use for another process, or; to convert it to finished goods. Distinct person as per section 25(4) of CGST ACT can not be termed as another registered person as required u/s 2(68) of CGST Act to comply the meaning of job work. Subscribe. In order to submit a comment to this post, please write this code along with your comment: 33f53721b65e8347e18624744a019562. Sir, Query : What are the documents to be issued by the Principal, the jobworker and the customer and what should be the mandatory contents of the documents. It includes outsourced activities that may or may not culminate into manufacture. i) Various rates in job work. g) Consequence when goods not returned within time. ~GST Mein JOB WORK Ka Kya Matlab Hai? By Frah Saeed January 24, 2021 No Comments. This means that sending goods for job-work and getting them back after the job-work will have no tax implications. Meaning of Job Work Section 2(68) of the CGST Act, 2017 defines Job Work: “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. MEANING OF JOB WORK UNDER GST. E-Way Bill requirements is incorrect ; As per EWB rules E way shall be generated while Job work related goods moving outside the state/UT. Provision under Central Excise and Service Tax A – Meaning of Job work under Central Excise. The manufacturer (principal) may send his goods to a job worker on contract basis after the purchase of inputs and/or capital goods for initial processing, packing or any other process of completion & then supply such goods to its customers or use any other manufacturing processes accompanied by its own. Section 2 (68) of the CGST Act defines Job Work as “”job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.” Treatment of Job Work in GST and Form ITC-04 What is Form GST ITC-04? A careful reading of the agreement between the two parties will be needed to appraise true nature of each and every transaction. The concept of job-work already exists in Central Excise, wherein a principal manufacturer can send inputs, semi finished goods or Finished Goods to a job worker for further processing. / ~Meaning and Examples Of JOB WORKER? It includes outsourced activities that may or may not culminate into manufacture. E way bill is required for goods sent to the job worker irrespective of the value of the consignment as per third proviso to rule 138(1) of the CGST Act. c) Job work procedure. Plz clarify the meaning if other registered person . The person doing the job work is called job worker. However, a registered job-worker gives his principal an additional advantage of being able to supply the completed goods directly from the premises of the job-worker without having to declare it as his additional place of business.Analysis of Recent Circular On Jobwork Under GST, For a treatment or process to be covered under the definition of ‘job-work’, it is important that it should be undertaken on ‘goods’. The person sending material for job work may take these goods out by … Is it ‘repair and maintenance’ or job-work? The copies of challan shall be marked as: (a) the original copy being marked as ORIGINAL FOR CONSIGNEE; (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), A. Applicability of the Provisions Relating to Job Work, B. 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