GST impact on Job Work

[Asked by Guest]

Dear Experts,

We are a manufacturer and we send the input, intermediate parts, capital goods to the job worker for job work purpose and same material received back to our premises after job work. In this case.

1) Under GSt on what documents we need send this material to Job Worker ?

2) Whether we charge GST on that documents or not ?

3) Job worker charge the GST on his job work charge invoice ?

Regards

Swapneswar Muduli.

[MUKUND THAKKAR]

Inputs removed by a Principal to a Job Worker’s premises that are returned to the Principal within 6 months (or within an extended period of further 2 months) no tax shall be payable. However, if the inputs are not retuned within 6 months or such extended period of 2 months than the input tax credit availed by the Principal shall stand be recovered as arrears of tax under CGST Law and no input tax credit of such tax paid shall be allowed under the CGST Law.

no need to charge GST while sending goods for job work.

if job worker turnover with in limit of 20lakhs need not pay to GST. if turnover is more than 20lakhs he has pay to GST.

This is my personal view.

After implementation of GST, GDP (Gross Domestic Production)will become increase 1-3
%. due to this increment jobs will increase in the formal sector such as automobiles, logistics, e-commerce, and cement. E-commerce and logistics. However, GST has been considered useful to every corner of the nation and also demanding around one lakh tax consultants as soon as possible.

 

[Narendra Soni]

Ans 1 - Delivery Challan

Ans 2 - Under GST Laws, your transaction shall not be taxable subject to condition, If inputs send that must be received back within 1 year and for capital goods 3 year. in case of jigs dies ect. no time limit. if the inputs and capital goods not received in the prescribed time period then time of supply will be the date of supply.

Ans 3 - Yes, job worker will charge the GST on his invoice of job work subject to threshold limit of 20 lacs or 10 lacs as the case may be

Written by Sushil Bhardwaj

[K. Senguttuvan]

I concur with the views expressed by Shri Narendra Soni.

S Srinivasan

AI Summary

Job work GST: supplies to job workers non-taxable if inputs returned in prescribed period; job worker taxable above turnover threshold.
A delivery challan is required when sending goods to a job worker. Supplies to a job worker are not taxable if inputs, intermediate goods or capital goods are returned within prescribed time limits; failure to return within those periods can trigger recovery of input tax credit as tax arrears and invoke time-of-supply rules. The job worker's charges for processing are taxable and must carry GST when the job worker exceeds the statutory turnover threshold for tax liability.