The person doing the job work is called job worker. It is immaterial to whom you send the goods. Who is exercising control over the persons carrying out the activity. But if the Job Worker is in other state then such declaration shall not be allowed. The same detail be filled in return ITC-04. Job-work sector constitutes a significant industry in Indian economy. Checkout GST Delivery Challan Format here, Your email address will not be published. MEANING OF JOB WORK UNDER GST. As far as I know Point No. Sign In; Sign Up; FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE. e) Valuation under job work. It is not necessary for the job-worker to be a registered person for his activities to be covered under the definition of job-work. Such wide inclusions raises the following important issues: 1. 2. “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” [Section 2(68)]. This phrase is one of the most important parts of the definition. Job worker makes finished goods and are ready to be sold. 2. Treatment of Job Work in GST and Form ITC-04 What is Form GST ITC-04? What is the definition of capital goods and input goods as per GST? As per Rule 45(3) of CGST Rules, every Principal sending their inputs, semi-finished goods or capital goods to the job worker for any type of job work is required to file a quarterly return in FORM GST ITC-04. Who is holding the risk relating to such goods while the job-work is being carried out? The person other than registered person shall have no concern about this section. Principal’s address is that of Union Territory and Jobworker & customer are registered in Maharashtra. Section 143 read with rule 45 of the CGST Act explain to follow the procedures for the purpose of job work transactions. Provision under Central Excise and Service Tax A – Meaning of Job work under Central Excise. The term ‘Job Work’ is very important subject under the GST. Posted by. For example if the consignment of such goods is Rs.1000 or less, e-way bill shall be generated. Though there is no tax under GST upon goods supplied for the purpose of job work to the Job Worker and returned back from the Job Worker after completion of job work to the Principal even then the Legislature has framed full fledged provisions under the GST Law in regard of transactions happened between the Principal and Job Worker. 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. Job work means any treatment or process or work on the goods owned by another person. (b) printing of books (including Braille books), journals and periodicals. The jobworker is a registered entity. Is it ‘repair and maintenance’ or job-work? f) Time limit for returning goods sent for job work. Further, they might also need to reverse proportionate input tax credit. Job-work sector constitutes a significant industry in Indian economy. 1. 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. 1. There is no overlapping among the definitions of both these activities as job-work is always in relation to ‘goods’ and never in relation to ‘immovable property’ whereas works contract is always in relation to ‘immovable property’ and never in relation to ‘goods’. Now, different phrases used in the above definition are being discussed separately: The word ‘any’ gives a wide ambit to the terms ‘treatment’ and ‘process’. Job work in GST means undertaking any treatment or process by a person on goods belonging to another registered taxable person. (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. 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. 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. Meaning of Job-work? ~What Is JOB WORK In GST? The Authority for Advance Ruling (AAR), West Bengal has held that the goods sent for job work but not returned being consumed in the process is supply and therefore, is liable to GST.. If the customer is in MH, CGST SGST will apply or IGST will apply as goods r shipped from MP? My question is which return he should file 3B & R1 both as a normal taxpayer and should he declare his charges under outward supply? / ~What Is JOB WORKER In GST? The work may be in the initial process, intermediate process, assembly, packing or any other completion process. Therefore the GST taxpayer on whose goods, the job work process is done is the “Principal”. Plz clarify the meaning if other registered person . 4. 2 of C i.e. It is processing of goods supplied by the principal. It is essentially different from job work as the material used in the performance of activities in case of job work belongs to the principal, whereas in case of contract manufacturing it belongs to the outsourced manufacturer itself. To reach to me for any suggestions, rectifications, amendments and/or further clarifications in regard of this article my email address is [email protected]. 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.” It includes outsourced activities that may or may not culminate into manufacture. Rule 45(3) of the CGST Rules provides that the principal is required to furnish the details of challans in respect of goods sent to a job worker or received from a job worker or sent from one job worker to another job worker during a quarter in FORM GST ITC-04 by the 25th day of the month succeeding the quarter or within such period as may be extended by the Commissioner. Will it make the activity of sending of goods for job-work taxable? The term Job-work itself explains the meaning. Challan shall also be issued by the Principal on such goods which shall have been sent directly to the Job Worker. 2. 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). 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