Procedures for job work

[RAMESH ANANTHAKRISHNAN]

Dear Sir,

Our product is classified under Chapter 54. Our factory is located at Pondicherry. We would like to send material in bulk for job work at Silvasa. Once the job is over sale is made to the various customers at various places from the job worker place. We understand from the procedure that we need to inform the job work details to the jurisdictional Excise officers and send the material with a challan to the job worker without payment of GST. Once the job work is done, we shall raise sale invoice with payment of GST.

Kindly advise whether our understanding is correct.

[ANITA BHADRA]

Dear Sir

Your understanding is correct .

Sec 143 of GST Act states - A registered person may under intimation may send goods to job worker and supply such inputs from place of business of job worker WITHIN ONE YEAR of their being sent out from the place of job worker on payment of tax .

You need to declare job worker place as your additional place of business

Regards

AI Summary

Job work under GST: goods may be sent under intimation and supplied from job worker within one year on payment. A registered person may, under intimation, send inputs to a job worker and transfer goods to the job worker's premises for processing without immediately paying tax. Processed inputs may be supplied from the job worker's place of business if supplied within one year of their being sent out from the job worker's premises, on payment of tax. The principal must declare the job worker's location as an additional place of business.