Job worker

[Jasbir Uppal]

My respected professionals

That my client doing the business as job worker and all material dies & moulds provided by principal as per section 143

That the job work charges charged by the job worker as per the labour quantum involve in job and principal pay accordinglysection 143.

1. That as per section 143 the applicant firm has return the balance stock of raw material at the end of financial year and principal issued the martial to job workers in next financial year. Some job work orders had on hand as on 1^st April which were completed in this financial year and the quantity on hand as on 31^st March were completed in next financial year after receiving the material. There is only job work order in hand.
2. That the rate of article fixed with the principle according to job work.

My quarry is if any stork of stock found in the premises of job worker the liability of tax paid on principal not on job worker because he was doing only job work of only this principal.

Pl. give your valuable opinion

J S Uppal

Tax Conslutant

AI Summary

GST Clarification: Principal Liable for Tax on Goods; Job Worker Pays GST Only on Service Charges (Section 143). A tax consultant raised a query regarding the GST implications for a job worker handling goods provided by a principal. Under Section 143 of the GST Act, the principal is responsible for the tax on materials, even if stock is found at the job worker's premises. The job worker, who only processes the goods, is liable for GST solely on job work charges, not the goods themselves. The principal must ensure GST is paid when goods are sent or transferred. Replies confirmed that the principal retains tax liability, and the job worker is only responsible for service charges.