Job work in GST

[Narendra Soni]

Dear Expert,

Please suggest whether job work is taxable in GST.

Taxable for Principle & for Job worker, registered and unregistered supplier & job worker

If returned after job working to principal, and

If direct sale/export from the premises of Job worker.

Thanks.

AI Summary

Job work in GST: inputs may be sent without tax but return, direct sale or export affect credit and interest.
Under the draft GST law, goods can be sent to a job worker without payment of tax and, subject to prescribed conditions, may be returned to the principal or sold/exported directly from the job worker's premises. Existing excise style time limits for return are retained; failure to return within the period requires reversal of input credit and attracts interest on delayed reversal. The CAG recommended explicit statutory provision for charging such interest. A gap is noted in the draft IGST law for inter state movements.