Job Work under GST

Job work under GST allows movement and return of inputs and capital goods without tax subject to specified procedural conditions.

Job work under GST permits removal of inputs, intermediate products and capital goods to job workers without payment of tax when procedural conditions are met; the principal must intimate the officer, issue a challan, keep accounts, and may claim input tax credit even when goods are sent directly to the job worker. Processed inputs must be returned within one year and capital goods within three years, with exceptions for specified items; intermediate products are treated as inputs for non taxable removal and waste may be cleared by the registered job worker or by the principal if the job worker is unregistered.