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.

AI Summary

Company Can Send Bulk Materials for Job Work Without GST; Invoice with GST Post-Completion per Section 143 of GST Act. A company located in Pondicherry plans to send bulk materials for job work to Silvasa and subsequently sell the finished products directly from the job worker's location. They seek confirmation on the GST procedure, specifically whether they can send materials without GST payment and later invoice with GST after job completion. The response confirms their understanding is correct, referencing Section 143 of the GST Act, which allows goods to be sent to a job worker and supplied from there within one year, provided the job worker's location is declared as an additional place of business.