Job work :
♦ Goods on which Input Tax Credit (ITC) is taken can be sent at another place for job work as per provisions of section 143 of CGST.
♦ “Job work” means undertaking any treatment or process by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly – section 2(68) of CGST Act.
♦ Intimation is required to be given for sending goods for job work [seems intimation of details in monthly return is sufficient].
♦ Goods can be sent directly to place of job worker and can be supplied to recipient directly from place of job worker.
♦ Inputs and semi-finished goods can be sent for job work. These should be brought back or despatched directly from place of job worker within one year.
♦ Capital goods can be sent to place of job worker for period upto three years, This time limit is not applicable for sending moulds, dies, jigs, fixtures and tools to the place of job worker.
♦ 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, or by the principal, if the job worker is not registered – section 143(5) of CGST Act.
♦ When material is sent for job work, Delivery Challan should be prepared in triplicate containing details specified in rule No. 8(1) of Invoice Rules.
♦ Details of challans in respect of goods dispatched to a job worker or received from job worker shall be included in return in Form GSTR-1.
♦ If inputs/capital goods are not received during prescribed period, GST will be payable for which challan issued will be considered as ‘invoice’.
♦ If inputs or semi-finished goods sent by Principal are lying with job worker on 1-7-2017, Principal should submit stock statement as on 1-7-2017 and then he can take input tax credit of central excise duty or State Vat paid on those goods – section 141 of CGST Act.