GST on Job Work contract executed by two registered dealers

[UDHAYKUMAR KANDASAMY]

My client owns a Dyeing Factory where he receives goods grey fabrics for Dyeing work through other registered job work contractors.

My client undertakes job work upto the stage of washing the grey fabrics. Is it possible to have dual job work contractors in a single job work process?

AI Summary

Registered principal may sequentially engage multiple registered job-work contractors for same goods; follow delivery challans, invoices, and time limits A registered principal can employ two or more registered job-work contractors sequentially on the same goods. Conditions include issuance of delivery challans for each movement, registered contractors issuing tax invoices for their services, and compliance with return-to-principal time limits (one year for inputs, three years for capital goods). Proper documentation such as delivery challans, e-way bills where required, and adherence to GST rules and circular guidance are necessary to ensure the movements remain within the job-work provisions.