REPAIR AND MAINTENANCE IN GST

[Ramesh joshi]

Please let us know how much time to return the capital goods after repair

from recipient to sender. Machinery sent thro' Delivery challan.

[KASTURI SETHI]

Capital goods must be back within three years in terms of Section 19(6) of CGST Act.

[Ganeshan Kalyani]

Within three years time period.

[Mahadev R]

There is a view that process of repair is not job work. However, conservative is to get it within 3 years as suggested by experts earlier.

[KASTURI SETHI]

Definition of 'job work' in pre-GST era

Explanation.-For the purposes of this notification, the expression “job work” means processing or working upon of raw materials or semi-finished goods supplied to the job worker, so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process.

Definition of 'Job work' under GST

Section 2(68) of CGST Act “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;

AI Summary

Return period for capital goods after repair under GST requires compliance with the prescribed statutory time limit for return.
Capital goods sent out for repair should be returned within a three year statutory period; although some view repair as distinct from job work, the conservative and prevailing advice is to comply with the three year return requirement. Definitions provided clarify that pre GST notifications framed job work as processing raw or semi finished goods, while GST defines job work as any treatment or process undertaken by one person on goods belonging to another registered person, informing compliance on movement and documentation of goods.