Job Work rules

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Section 2(68) of the CGST Act, 2017 defines job work as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. The one who does the said job would be termed as ‘job worker’. The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods.

MyQuery is : It is immaterial as to whether the job worker undertakes job work in his premises or in the premises of service receiver.? and which say with Rules and section Please can provided it.

AI Summary

GST Classification of Job Work: Location Irrelevant, but Principal's Premises May Signal 'Manpower Supply' per Section 2(68) CGST Act. MJ Enterprises initiated a discussion on the Goods and Services Tax (GST) concerning job work, defined under Section 2(68) of the CGST Act, 2017. The main query was whether the location of job work, either at the job worker's or the principal's premises, affects its classification. Responses highlighted that the location is immaterial, but job work at the principal's premises could be categorized as 'Manpower Supply'. Rules 45 and 55, and Rule 138(1) of the CGST Rules, 2017, were cited, emphasizing the necessity of delivery challans and e-way bills. It was also noted that job workers could subcontract tasks.