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

Multiple Job Work Contractors Allowed Sequentially Under GST with Delivery Challans and Timely Returns per Sections 2(68) & 143 Two registered dealers can legally engage multiple job work contractors sequentially for a single job work process under GST. The principal must issue delivery challans for each movement, and all contractors must be registered and issue tax invoices for their services. Compliance with time limits for returning goods to the principal-one year for inputs and three years for capital goods-is required. Proper documentation, including e-way bills and delivery challans, must be maintained as per Sections 2(68) and 143 of the CGST Act. Relevant GST Board circulars provide detailed procedural guidance.