Difference between Jobwork & Repairs /Maintainance

[Manjunath S]

Dear Experts,

We are running a manufacturing industry, and we used to send following Capital items for the following reasons both intra & inter state frequently.

Motors - for rewinding

Iron Rolls - for grinding /rubberising or repair

Drilling/cutting machines - for Repair

My Quairy is:

a) Are these works comes under job-Work ?

b) Is it require to intimate department before sending these items for repair. ?

c) Do we need to file ITC 4 for this ?

Note: Apart from these capital goods, we are not sending any inputs or semi finished goods.

Kindly guide us.

Thanks is advance.

Manjunath S

[Guest]

Sir,

Sending Capital goods(not manufactured by you) outside for repair, rewinding and re-grinding are also coming under job work only but not require to intimate to dept in advance. In this case, item can be send under DC cum RGP( shall contains part-I(particulars about sender, job worker and materials) and part-II(to be filled by job worker like when material received, what process done, return qty and date)). No need of ITC-4

Sending Inputs or semi-finished goods by you to job worker for further process need intimation to dept and need to comply ITC-04

[SHIVKUMAR SHARMA]

As per my view Repair & maintenance of Machinery is not coming under the Job Work & hence Question for filing of ITC4 is not arises.

[Nitika Aggarwal]

Dear Sir,

The term 'Job-work' has been defined under sub section 68 of section 2 of CGST Act, 2017 and the same is reproduced hereunder for the sake of ready reference:-

(68) "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;

Further, the definition of term goods has been defined in sub section 52 of section 2 of CGST Act, 2017 and the same reads as under:-

(52) "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;

Accordingly, in my humble submission, repairs and maintenance of machinery specified above are not covered under the ambit of term job work as no treatment or process is being carried out. Thus, no requirement of filing of form ITC-04.

Hope, it shall assist you in best possible manner

Nitika Jindal

9999804960

AI Summary

Job work classification: repair and maintenance of capital machinery may not qualify as job work, affecting ITC filing obligations. Whether sending capital machinery out for repair or refurbishment constitutes job work under GST hinges on whether the activity is a 'treatment or process' on goods belonging to another. If the activity qualifies as job work, dispatches may use a DC cum RGP and do not require prior intimation, but sending inputs or semi finished goods for processing attracts intimation and Form ITC 04; routine repair and maintenance that do not amount to a treatment or process do not trigger ITC 04 obligations.