TaxTMI 
TaxTMI 
Whether packing constitutes to job work under GST?
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....hether packing constitutes to job work under GST? <br> Query (Issue) Started By: - Balaji Srinivasamurthy Dated:- 11-7-2025 Goods and Services Tax - GST <br> Got 7 Replies <br> GST<br> <br> 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 --Reply By: Sadanand Bulbule The Reply:....
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.... Plz refer CBIC Circular No. 38/12/2018 dated 26/03/2018 for job work clarification with reference to the conditions prescribed under Section 2[68] of the CGST Act. It is held that, lebelling, packing and repacking using own material by the job worker for the goods belonging to the principal amounts to job work. --Reply By: YAGAY andSUN The Reply: Sending manufactured goods for packing outside....
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.... the factory area/manufacturing facility will tentamount to Jobwork activities. Types of Job Work * Processing Job Work - Activities such as cutting, welding, dyeing, packing, repacking. * Manufacturing Job Work - Assembly or creation of finished goods. * Repair or Maintenance Job Work - Fixing or maintaining machinery, parts. * Testing/Quality Control - Quality assurance functions perfo....
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....rmed on goods. --Reply By: KASTURI SETHI The Reply: ANSWER IS YES. --Reply By: Harshaditya Kabra The Reply: Packing definitively constitutes job work under GST when it meets the criteria established in Section 2(68) of the CGST Act, 2017. The CBIC Circular No. 38/12/2018 provides clear and authoritative guidance that packing, labeling, and repacking activities, even whe....
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....n using the job worker's own materials, qualify as job work when performed on goods belonging to a registered principal. Key Requirements for Packing to Qualify as Job Work: * Principal must be registered under GST * Goods ownership remains with principal during packing process * Packing constitutes treatment or process of the principal's goods * Proper documentation and com....
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....pliance procedures must be followed The treatment of packing as job work provides significant benefits including the ability to send goods without payment of tax (under Section 143 procedures), input tax credit availability, and streamlined compliance for the manufacturing sector. However, proper documentation and adherence to prescribed procedures are essential to avail these benefits and en....
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....sure GST compliance. --Reply By: Balaji Srinivasamurthy The Reply: Dear experts Many thanks for the clarification! Further to this, if the principal proposes to export the goods directly the job worker place, can the principal prepare the invoice on the basis of "Bill-from" "Ship-from" (or) does he have to get the job worker place registered? Would be grateful if clarifications can be given ref....
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....erring the relevant provisions under GST. --- Sub-Reply By: Shilpi Jain The Sub-Reply: if job worker is registered can do, else add JW place as additional place of business of principal --Reply By: Sadanand Bulbule The Reply: Yes Sir. The principal can export the goods directly from the place of job worker and such supply is treated as zero rated under Section 16 of the Act. Better to ....
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....get the job workers place as additional place of business of the principal. As far as documents are concerned, they are as per the prevailing system, either under LUT or IGST payment, whichever is applicable. E-way bill should ensure the correct and complete particulars about the place of origin of consignment to the place of port for export purpose to avoid interception in transit. <br>***<br> ....
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