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

Dual job work under GST is permitted when sequential contractors comply with registration, invoicing, delivery challans and return obligations.
Dual participation of registered job work contractors in a single job work chain is permitted provided the principal issues delivery challans for each movement, both contractors are registered and issue tax invoices, and time limits for return of goods to the principal (one year for inputs and three years for capital goods) are observed; requisite transport and transaction documentation such as e-way bills, delivery challans and tax invoices must accompany each movement.