Whether packing constitutes to job work under GST?

[Balaji Srinivasamurthy]

Dear experts,

I seek your valuable opinion on a situation where the goods sent by manufacturer for packing, shall be termed as job work as per Section 2(68) of CGST Act

AI Summary

Packing qualifies as job work under Section 2(68) when performed on registered principal's goods A discussion forum addressed whether packing constitutes job work under GST regulations. Multiple experts confirmed that packing qualifies as job work under Section 2(68) of the CGST Act when performed on goods belonging to a registered principal. CBIC Circular No. 38/12/2018 clarifies that labeling, packing, and repacking activities, even using the job worker's own materials, constitute job work. Key requirements include the principal being GST-registered, goods ownership remaining with the principal during packing, and proper documentation compliance. The forum also addressed export scenarios, confirming that principals can export goods directly from job worker locations as zero-rated supplies under Section 16, with recommendations to register the job worker's place as an additional business location of the principal for smoother operations.