The definition of job-work already exists in Central Excise and the job worker plays a major part in the Indian economy due to involvement in the processing of input or unfinished goods. GST makes the Principal (the owner of the goods) take care of compliance on behalf of the job worker. While considering the fact that job work is often an MSME sector and the same is not able to comply with the structure of the tax.
Latest Update
- 52nd GST Meet – As applicable to food and food products, job work services for processing barley into malt attract GST @ 5% (not 18%).
- 47th GST Meet – GST Rate from 5% to 12%
- “Job work in relation to the manufacture of clay bricks”
- “Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof”
- 47th GST Meet – GST Rate from 12% to 18%
- “Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc”
- “Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & subcontractor thereof”
- Odisha GST AAR has issued the order related to the construction of the Hydrogen and Nitrogen Gas Plant. The agreement said the raw materials which are for making industrial gas by IOCL are not qualified as Job Work. Read PDF
What is Job-work Under GST?
The definition of Job-work under GST is covered under section 2(68) of the CGST Act, 2017 states “Any treatment or process undertaken by a person on goods belonging to another registered person”. Therefore, a job worker is a person (registered or unregistered) who is processing or treating the goods of another registered person and the owner of the goods is called the Principal in this respect.
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Section 19 of the CGST Act, 2017 explains the definition of the Principal as ‘a person supplying goods to the job-worker.’
The Responsibilities Lie With The Principal
- The Principal issues the challan (as specified in rule 10 of invoices rules under GST) to the job worker for the inputs or capital goods
- Maintaining the accounts of input and capital goods
- Intimate the jurisdictional officer for the detailing of the intended input goods and the nature of the processing being delivered by the job worker
Time Constraint for Returning the Processed Goods to the Owner
The supply of the inputs to the job work shall be returned to the Principal within a year, the date is counted from the date of receipt. In the case of processing capital goods, the time limit for returning the processed goods within the premises of the owner is three years.
Section 19 of the CGST Act, 2017, except for the supply of capital goods or inputs, all the tools, fixtures, jigs, moulds, and dies supplied by the Principal to the job worker are not covered under the returning norms.
GST Rate on Job Work
The GST council further reduced the GST rate on the engineering job work from 18% to 12% while the diamond supply job work is now under the 1.5% GST rate from 5%.
Also in the latest GST circular 126/45/2019, it has been clarified that all the registered taxpayers under job work are to be levied with 12% GST and hence the unregistered taxpayers under the GST job work will have to give 18% GST rate.
Credit On Input Tax Paid On Goods Supplied To Job-worker
Under the CGST Act, the Principal supplies capital goods or inputs to the job worker for processing and is responsible for paying the input tax on such goods. So, the Principal is meant to take the credit for input tax paid on such goods.
The law compensates the owner for applying for the credit without waiting till the inputs come to the premises if the goods are sent directly to the job worker without taking it to the premises of the business.
Procedure to Claim Input Tax Credit on Job Work
A. Purchased Goods can be sent to the job worker in the given manner:
- From Principal Place of Business
- Directly From the place of supply of the supplier of such goods
In both above cases, ITC will be allowed.
B. Effective dates of Goods sent out depending on the place of business:
- Either Good sent out from the principal place of business or
- Goods are sent out directly from the place of supply of the supplier. In such case date of the recipient of the job-worker is required.
C. The goods sent out should be received back by the principal manufacturer within the particular period:
- Capital Goods- 3 years
- Input Goods- 1 year
Effective dates of being goods sent out or acquired by the job worker, totally depend on the place of business from where goods are sent out Consider points – A & B
D. If case capital and input goods are not received within 3 years and 1 year respectively. These goods will be considered as supply from the dates and the tax will be applicable on such deemed supply and the challan issues will be considered as the invoice for such supply.
Rules and Restrictions to Claim Input Tax Credit under Job Work
A. Inputs, semi-finished goods or capital sent out on job work
- Goods sent out from the principal place of business
- Goods sent out directly from the place of supply of the supplier
It is necessary to send out goods along with a challan
B. The Challan should include the particular points
- Date and number of the delivery challan
- Name, address, and GSTIN of the consignor and consignee
- HSN code, description, and quantity of goods
- Taxable value, tax rate, tax amount- CGST, SGST, IGST,, UTGST separately
- Place of supply and signature
C. The information details of the challan should be shown in GSTR- 1 Form
D. Information details of input/ capital goods sent out to the job worker must be claimed through GST ITC – 4
Transitional Provisions for Job-work Under CGST
Transitional provisions are meant to decide whether the goods and services being processed or under-processed before or on the appointed day of GST are liable to be covered under GST or not. The cases which exempt the Principal from paying the tax:
- Under the Central Excise law, inputs or partially worked inputs are sent to job-worker for processing before the introduction of GST and the goods returned to the premises of the Principal within 6 months from the appointed day of GST, then no tax is applicable on such goods
- If the goods are not returned before 31st December, it is liable to be covered by the input tax credit.
- In case, the Principal has supplied the goods or inputs to the job worker and the goods are removed within 6 months from the 1st of July, all such supplies are need not pay tax but required to furnish the GST TRAN-1 form within 90 days of implementation of GST
FAQs Related to Job Work Mechanism & its Compliance Under GST
Q.1 – Define Job Work?
The job Work industry deals in the processing of the raw materials/semi-furnished or intermediate goods to convert them into final or consumable products. The raw materials are provided to the sector by principal manufacturers.
Q.2 – How is a Job Work unit defined under GST provisions?
As per the clauses of Section 2(68) of the Central GST Act, Job Work is the processing/treatment for the final transformation of the goods belonging to the other registered person. The person who performs the task is called ‘Job Worker’. However, the ownership of the goods remains with the concerned person (principal manufacturer) and the job worker is obliged to work as per the requirements of the principal manufacturer.
Q.3 – Who are Principal Manufacturers?
Principal manufacturer is the actual owner of the raw materials/semi-furnished goods who outsources the task of transforming the goods to Job Work Sector. Job Worker converts the raw material into finished goods and is paid for his services.
Q.4 – What are the terms of registration for Principal Manufacturers and Job Workers?
Registration under GST is the must for Principal manufacturer as well as Job Workers. However, the registration relies on various registration criteria mentioned u/s 22 & 23 of the Central GST Act. Registration under GST is beneficial for the Job Work Sector as it has customized provisions for the sector when it comes to simplified return filing, ITC claim or GST rate applicability.
Q.5 – What are the applied GST rates for the Job Work Industry?
| Principal Manufacturer | Job worker | GST Rate |
|---|---|---|
| Registered | Registered | Rates specified in chapter heading 9988 for the respective goods/services |
| Registered | Unregistered | N/A |
| Unregistered | Registered | 18% * |
Q.6 – What category of goods are processed in the job work sector?
The goods processed for final consumption by the Job Work Sector are either the input goods or Capital Goods delivered by principal manufacturers.
Q.7 – Are there any policies (under GST) for sending the raw materials to the Job Work Sector?
The goods delivered by the Principal Manufacturer to Job Work Sector for processing needs to be processed and the furnished products need to be re-delivered to the Principal Manufacturer within the prescribed deadlines set by GST Governance. The time limit is as follows:
- For Input Goods – Within 1 Year
- For Capital Goods – Within 3 Years
- No terms of return are mentioned for Moulds, dies, Jigs and fixture or tools
Q.8 – Are there any documents or intimation involved while sending the raw materials for final-furnishing to the Job Sector?
The delivery of the raw material to the Job Work Sector is authenticated by a challan issued by the principal manufacturer. The format of the challan is prescribed by rule 10 of Invoice Rules. The complete list of items delivered by the principal manufacturer to the Job Worker needs an entry in Form ITC-4. The form is filed by the principal manufacturer mentioning the details of the items sent to the job worker. ITC-4 is quarterly compliance mandatory for every principal manufacturer. deadline s for furnishing the Form ITC-4 is on or before 25 of the Month succeeding the quarter. ITC-4 is an online compliance form.
Q.9 – What are the contents of Form ITC-4?
Form ITC 4 is the requirement by Principal Manufacturer and te format includes information such as;
- List of Goods delivered to Job Workers or received from them
- The goods sent from one Job Worker to another due to finishing requirements
- Goods received back from the Job Worker
- Details of the job worker to whom the goods are transferred from the prior job worker
Q.10 – Is there any Input Tax availment on the goods sent to Job Workers?
Yes, Input Tax can be availed by the Principal Manufacturer on input goods/capital goods sent to Job Workers. Principal manufacturer can avail input tax even when the goods are directly transported to the job worker’s site without reaching his premises. Provided that the manufacturer must contain the document of supply.
Q.11 – How it is mentioned that the furnished goods are been re-delivered to the Principal Manufacturer?
Yes, Input Tax can be availed by the Principal Manufacturer on input goods/capital goods sent to Job Workers. Principal manufacturer can avail input tax even when the goods are directly transported to the job worker’s site without reaching his premises. Provided that the manufacturer must contain the document of supply.
| To | Payment of Tax | Conditions ( if any) |
|---|---|---|
| Principal | Not required | No conditions |
| Another Job worker | Not required | No conditions |
| Buyer ( for sale) | Required (For clearing within India) Not Required ( For Exports) | Job worker premises require to be registered as both Principal`s additional place of business or Job worker own registration |
Q.12 – Are there any documents or intimation involved while sending the raw materials for final-furnishing to the Job Sector?
The waste/scrape generated during goods processing can be disposed of by either the principal manufacturer or the job worker once the taxes u/s 143 of the CGST Act are paid.
Q.13 – Are there any documents or intimation involved while sending the raw materials for final-furnishing to the Job Sector?
| Goods/Inputs from place | Goods/Inputs to place | Movement type | Eway bill generation limit | Eway bill primary responsibility |
|---|---|---|---|---|
| Principal | Job worker | Intra state | Rs.50000 | Principal |
| Principal | Job worker | Inter state | Limit N/A | Principal |
| Job worker – Registered | Principal | Intra state | Rs.50000 | Job worker |
| Job worker – Registered | Principal | Inter state | Limit N/A | Job worker |
| Job worker – Unregistered | Principal | Intra state | Rs.50000 | Principal |
| Job worker – Unregistered | Principal | Inter state | Limit N/A | Principal |
| Job worker – Registered | Customer- For Sale | Intra state | Rs.50000 | Job worker |
| Job worker – Registered | Customer- For Sale | Inter state | Limit N/A | Job worker |
| Job worker – Unregistered | Customer- For Sale | Intra state | Rs.50000 | Principal |
| Job worker – Unregistered | Customer- For Sale | Inter state | Limit N/A | Principal |
| Job worker place registered as Principal`s Additional place of business | Customer- For Sale | Intra state | Rs.50000 | Principal |
| Job worker place registered as Principal`s Additional place of business | Customer- For Sale | Inter state | Limit N/A | Principal |
Q.14 – Mention the GST return forms furnished for job work?
GST return filing is a mandatory compliance for both the parties involved in the supplies of goods (manufacturer and job worker). Form GSTR 1, GSTR 3B, etc, are filed based on their relevance to the process. Additionally, the principal manufacturer needs to file ITC-4 putting in all the details related to the supply/receiving of goods from the job worker.
i have jobwork agreement with vendor that by- product will be used by who is doing job worker & finished procuct i will take back,Please advice how i file my ITC04
We received 2 job bill on different date against one challan, how to show in ITC 04
what will be gst rate for job work on packing of musturd oil?
I’m registered person and providing the job work services of coloring & dyeing of zip rolls & textile fabrics / materials. Please suggest the right rate of GST on it.
As I have visited & search too many sites & found different – different views on it.
Thanks in advance.
Sir what is the current gst rate on job work relating to manufacture of school bags.
Kindly go through this link for the same https://cbic-gst.gov.in/gst-goods-services-rates.html
Dear Sir, we are doing the job work ( cutting the brass tubes in to small pieces) Raw material in long tube form which is supplied by a company located in special economic zone and fully tax exempted, how we can a handle GST filing and what will be the HSN code for this job work, Kindly advice
Thanks and regards,
Chandran VP
You need to file ITC 04 return for the job work and for HSN code Kindly go through this link https://cbic-gst.gov.in/gst-goods-services-rates.html
Sent for job work
Job work challan Slno 1 date 01-01-2021 Purpose : Sorting and Packing
Item 1 Packing material 100 Nos Rs 1000 +GST
Item 2 Input materials 200 Nos Rs 50000+GST
Job work challan total 51000+GST and e waybill taken with challan no Slno 1
Return after job work
Document 1- Job work charges invoice issued by Job worker with SAC code Rs 5000+GST
Document 2 – Delivery Challan issued by Job worker with our job work Challan no Slno 1
Item : Packed Finished item 100 nos Value 51000 +GST with an e waybill Document no 2
Here we are sending for job work 2 items and after job work we are receiving (1+1) different item. Please advise whether the documentation producer satisfies the GST rules.
“Dear Sir, kindly consult it with GST Practitioner, we are not providing consultancy services”
Sir
As a job worker, we have taken credit in GST Regime as per credit available in our last ER-1 Return via Trans-1 filing. Credit was taken on account of materials supplied by our Principal manufacturer. Now we are paying GST only on conversion charges/Job work charges to our Principal manufacturer and not paying GST on the goods manufactured on their behalf. Principal Manufacturer is paying GST when the goods are cleared from their godown/depot. Department asking to reverse credit as no GST is paid by us on the goods returned to our Principal after process of raw materials supplied by them.( even though GST is paid on processing charges)What is your expert opinion. will be very much obliged
“Please consult the matter with the GST practitioner”
PL provide clarity, whether in CE era thr transitional provision the principal had sent you the material under job challan or thr an invoice!
if it was thr challan you were not entitled for ITC.
So, in that case there is no matter of reversal.
in other case if the transaction was thr an invoice (i.e sale /purchase), then you should return the entire goods including the processing and hence should pay GST accodingly on entire amount not only for conversion .
“Please consult GST practitioner for the same”
Sir,
I am a registered gold jewelry wholesaler. I bought gold and give to gold smith for converting as ornaments. But the goldsmith is an unregistered person. In this case, May i pay the labor charge with GST and how can I get back the paid GST? Can I claim ITC?
Please Guide me.
Ravichandran.
Yes, you have to pay the GST under RCM and you can claim the same through your GSTR 3B
Sir,
Please quote relevant section or notification that substantiates your answer.
Thanks.
Please read the article as we have already mentioned the circular number.
Dear Sir,
Please advise us if we r a manufacturer of machine parts and we send rough material to job worker on challan and after finishing it how we can send directly from job worker to our buyers instead of first we bring finish material at our business premises then despatch to buyers.
As we are a msme unit .we want to save transportation from job worker to our end and despatch again to our buyers.
A detailed/clear information will help us.
Regards
Dear Sir, you need to fill ITC -04 return form for the same, in that you can mention each & everything regarding Job works working, in that case, Job worker can issue invoices on your behalf and for more detailed knowledge please consult GST practitioner for the same
Dear Sir,
Ours is a distribution of Electricity ESCOM. We buy Transformer, Cable, Conductor, Electric Poles etc. for distribution of Electricity. Since Electricity is exempted from GST, we don’t take ITC credit for inputs, capital goods and input services. We frequently send Transformers for repair. Do we have to follow Job work procedure and file ITC-04 Return for the goods for which ITC credit not taken. Your valued opinion is requested
No, Repair is different from further processing Hence no need to file ITC -04, but it is requested to kindly consult with GST practitioner for final confirmation
I Have a Granite Factory…My client Sent a Rough Granite for job work and He wants Polished Granite Slabs…So I have a Doubt in Job work tax Rate on Polished Granite Slabs and Which SAC Code Attracts for it…..Also As Possible, any Notification Numbers Reply to me
Thank You
kindly go to this website for your query https://cbic-gst.gov.in/gst-goods-services-rates.html
We are manufacturing PVC PIPES and sending them to Jobworker to Join FITTINGS with our Pipes. Jobworker is issuing us an invoice of materials is used (fittings) on pipe. what should we do to make transaction with job worker. what Rate of GST willbe applicable on finished goods. pipe fittings are used by job worker are falling under HSN 40092200. in which register of GST we should show and which return should maintain by us (principal) and by jobworker
Please consult a GST practitioner
Hi,
Need to send semi-finished textile goods interstate for job work purposes and get them back once done. What is the procedure?
File ITC 04 for the same
Dear Experts,
My question is related to e-way bill for job work.
We are doing manufacturing services to one of our vendors. We received all inputs from our vendor. Further, we are doing the manufacturing process and return the bank to the vendor that time we are raising the Invoice for labor charges. In this case which value to be entered during the e way bill preparation.
Input value + labour charges
I have a query related that if we want to issue back dates challan so how should we alot the dates of challan; Is it possible to make the dates the same of minimum 8 to 9 challans.
Please help me
There is no option available on the portal regarding the change in date
Sir, I am a grey cloth trader in Surat(Gujrat). I purchase yarn from Malegaon (Maharastra) and directly shift the yarn from the supplier of yarn to Mumbai for job work on the yarn for manufacturing grey cloth. The grey cloth is directly recd. by us from the job worker. The job worker of Mumbai is regd. under GST. As the job worker is situated at other State, whether I need to take registration of GST of Maharastra also? Please also guide me necessary precautions to be taken in these transactions.
Sir, I am doing job work for a textile company. they issued me only fabric and I have to put foam and lining fabric at the back of the fabric and have to do some quilting on that fabric.
pls. suggest to me how will I make a bill of job work ..pls. understand all teh accessories like foam, lining, and thread purchese by me and quilting will be done by 3rd party.
You have to fill ITC-04 for the same as it relates to job work
I do manpower supply for aluminium casting manufacturing company.they send job work to my place for casting job work. What are the document and licenses required by my side? I have manpower registration certificate,GST certificate, MSME certificate.
how can i apply factory license.company asking factory license.
pls help me.
For a big manufacturing company, there are many job work vendors who consistently work for the principal manufacturer. As far as the time limit for Capital Goods is concerned, now we are reaching 3 years, what should the principal manufacturer do now? What are the options we have other than considering them as deemed supply now?
I am a retail registered regular dealer, due to heavy competition with corporate chain jewelers,
If receive OLD GOLD from CUSTOMER unregistered and give the same to KARIGAR for making an ornament, receive the same from KARIGAR and deliver the ORNAMENT (made of old gold). HOW TO TREAT THIS PROCESS IN GST. we stopped this process from2017 when GST came into force. RETAIL JEWELLERY business has come down due to a lack of capital to face CORPORATE JEWELLERS. PLEASE INFORM IN DETAIL HOW TO FILE IN GST (ITC4).
Sir,
We want to buy raw material and send the same to a manufacturer and he will complete the total process and send us back the Finished product to us.
1. can it come under job work?
2. Raw material can be supplied to manufacturer directly from raw material supplier if so Billed TO, shipped to concept bill is required…
3. After completion of the total process how the manufacturer will raise an e waybill for sending finished product to us
4. Any tax is to be paid on a finished product by the manufacturer.
5. Can we despatch the FINISHED goods directly from the manufacturer to our customer
I ENGAGED IN JOB WORK ACTIVITIES IN RELATION TO DIAMONDS INDUSTRY. IF I PROVIDED PHOTO AND VIDEO FACILITIES REGARDING DIAMONDS THEN HOW MUCH GST LEVIED ON IT E.G. 1.5%, 12% OR 18%.
Rate of Job work activities in relation to Diamonds Industry is 1.5%.
We are into the bulk repair of electronic goods. Our Customer (who is not a manufacturer ) sends us the defective goods and we return the same after repairs. The Customer wants us to invoice him under Job Work which attracts lesser GST 12% as against the Repair GST of 18%. Is it valid?
If he is registered as a job worker then the rate will be 12% otherwise it will be 18%.
Hello Sir, Should of UNITS OF MEASUREMENT for outward and inward material be same while filling ITC 04? For instance, if “x kgs” of raw material is sent outward to job work and “y nos” of goods comes inward, what unit of measure to be given?
If the material is sent from one unit to another for Job work of the same company. Should detail required to fill in ITC-04 and how to make Eway bill.
NEED ADVICE. PRINCIPAL A IS SENDING GOODS FOR JOB WORK TO JOB WORKER B, JOB WORKER B SENDS THE SAME GOODS TO SUB JOB WORKER C, IN THIS CASE, TO MAINTAIN SECRECY, A IS NOT INFORMED. B RECEIVES GOODS FROM C AFTER SUB JOB WORK, INVOICE IS RAISED BY C TO B. B SENDS BACK GOODS AFTER JOBORK TO A, INVOICE IS RAISED BY B TO A. PRINCIPAL WILL FILE ITC 04. WHAT IN CASE OF B, HAS HE TO FILE ITC 04?
Hiii.
We have a gold jeweller, who sends his gold bricks for jewellery making. If he purchases the gold brick on last day of a particular quarter and sends it for job work after 15 days, What will be the taxable value because there is a fluctuation in the price of gold every day. Should he send those goods for job work on the actual purchase value of the gold or he should raise the challan for the value of gold on the basis of rates for gold on that particular day. In this case what will be the taxable value for outward as well as inward supply.
A principal sends different items with different nomenclatures and units of measurements to job worker for getting it processed as finished goods. The finished goods are having a single identity and one unit of measurement. Simply putting, different items of inputs are assembled into one item and received back by the principal. While receiving back, how to fill up detail of items received back in ITC-04? Should it be input wise?
You have to enter details original challan wise not raw material wise in ITC-04.
Does manufacturer of exempt goods (goods not subject to tax under GST) need to file ITC-4 return?
As only details of taxable goods have to be entered in ITC -4, so in your case you not need to file ITC-04.
SIR, If job work doing persons can be avail all the consumable, spare part items of machinery for GST Refund?
We are Trader. Can we send the material for Job work.
which document is required if the job worker send remaining scrap material to principle.
The principal input tax credit is higher than the output tax because of the job work billing @ 18%, Can the refund be claimed for the excess input tax by the principal.
Yes, refund of the same is available.
Inputs from job worker that are not received back within prescribed time & tax paid thereon with interest accounts to the loss for the principal.
True… Or False if there is an issue add something appropriate with an explanation, please.
Yes, true you have to pay tax with interest.
AFTER JOB WORK IS DONE, WHICH INVOICE JOB WORKER SHOULD ISSUE AND WHAT WILL BE THE VALUE OF INVOICE IF JOB WORKER IS REGISTERED. VALUE OF INVOICE WILL BE JOB WORK CHARGES AND GST THEREON OR IT WILL INCLUDE COST OF MATERIAL ALSO. WHAT OTHER DOCUMENTS JOB WORKER SHOULD ATTACH WHILE SENDING GOODS BACK TO PRINCIPLE AFTER JOB WORK TO AVOID ANY PROBLEM.
Job worker shall issue an invoice for job worker charges and GST thereon while sending goods to job worker.
sir,
please provide us the law for the above comment
Please goto http://www.cbic.gov.in for Act & Rules
what will b taxable amount in ITC 04, if goods are returning from job workers place?
Thanks
The value of goods returned shall be the taxable value.
ITC 04 FORM DOES NOT ACCEPT PREVIOUS QUARTER GOODS SENT IF IT IS RECEIVED IN NEXT QUARTER WHAT SHOULD WE HAVE TO DO?
A principal sends different items with different nomenclatures and units of measurements to job worker for getting it processed as finished goods. The finished goods are having a single identity and one unit of measurement. Simply putting, different items of inputs are assembled into one item and received back by the principal. While receiving back, how to fill up detail of items received back in ITC-04? Should it be input wise?
No, the item received back should be as per finished goods produced from inputs.
“SAG INFOTECH
March 13, 2019 at 12:07 pm
You have to enter details original challan wise not raw material wise in ITC-04.”
The above solution contradicts with the one replied to this earlier question.
Please advise if the material is sent to JW in one UOM and received back by JW in another then in RECEIPT section of ITC 4 in which UOM the data to be reported.
Data is to be reported in that UQM which is received back from the job workers as the final liability is to be calculated on the final product UQC basis
I have a party having specified mould. He wants to give mould to the party of another state to produce the goods according to that mould. He will also send material to the party for the production of particular goods.
kindly suggest me what are the procedures under Job work. Is this transaction really fall under Jobwork? because no process to be done by the jobworker on the mould
Also suggest the GST form & challan to be generated for this procedure under GST.
According to CGST Act, 2017 “job work” means any treatment or process undertaken by a person on goods belonging to another registered person. In your situation, some goods are producing from mould given by you to another person which is covered under the same definition. Hence it is treated as job work.
ITC-04 is required to be filed on a quarterly basis in case goods are sent on job work under cover of delivery challan without payment of tax.
I have saree traders. I give plain saree cloth to Karigar at home. He returns saree after done some hand work on it and raise job work charges.
Our all job workers are unregistered and they are very small-small. their yearly turnover is below 2 Lac INR.
They are unregistered, so they are not charging GST on job work charges.
Now tell me, these kinds of job work need to be furnished in ITC-04 because there is no GST, so no matter of input credit.
ITC-04 is basically the detailed format for input taking of job work GST paid.
so are these kind of job work, need to be furnished in ITC-04?
I did not find anything on the internet regarding it.
Please help me
ITC-04 returns form for furnishing details of inputs and capital goods sent on job work. All details need to be furnished in ITC-04 whether GST is charged or not on those goods or whether job worker is registered or unregistered.
When an as small quantity of the goods is utilised by the job worker along with the major material supplied by the principal supplier. How the invoices are to be raised in such cases.
Can you help me with below queries,
1) After job work is done, who should issue the Delivery challan for the return of goods? Job worker or Principal.
2) Who should generate e-way bill?
3) Where do we submit ITC-04, online or manually to GST office?
Hi,
My query is if the manufacturer sends 100 mtr yarn to job worker and after completing job work finished products received in 90 mtr and thereby loss of 10 mtr. How to treat this loss in ITC-04?
You can show the receipt column 90 mtr. as goods receipt and 10 meters. as process loss in ITC-04
MY SELF CA SANJAY MOONAT HAVING GENIUS SINCE 2005 AND GEN-GST
HOW TO REPRESENT GOODS SEND ON JOB WORK IN GSTR-1
AND HOW TO ENTER AGAIN WHEN GOODS RETURN BACK AFTER JOB WORK DONE
Job work-related data will be shown in separate GST ITC 4 return.
A principal sends different items with different nomenclatures and units of measurements to job worker for getting it processed as finished goods. The finished goods are having a single identity and one unit of measurement. Simply putting, different items of inputs are assembled into one item and received back by the principal. While receiving back, how to fill up detail of items received back in ITC-04? Should it be input wise?
Hi
We need to raise the delivery challan from Noida, Do we need to write the Amount and GST Amount in the delivery challan itself?
As we buy that material in Kgs. and Job work Bill will be calculated on r.fts.
What are the constraints to raising E way bill for the same?
Yes, you need to mention that in delivery challan.
I run a sawmill business in Karnataka where I sell goods as well as provide services, service income is only up to rs.3 lakh per year and sales are up to rs.21 lakh. Can I opt to composition scheme now? Whether service income up to rs.5 lakh is allowed for composition dealer?
Yes, you can opt for composition scheme.
Dear Sir, Please need your valuable advice, We have two units on same PAN & in the different location. One unit is mfg. & in the second unit we want to do a job work. Can we do this? Can we send the goods to our another unit for further job? Have any guidance in GST law for this? Is there separate GST challan or documentation for this? Which job work challan we have to issue to the second unit? and after completion of job work from the second unit should we need to raise tax invoice or challan? what is section 143 says?
Please help.
Dear Mr Rao
In my opinion , as per section 2(68) of the CGST Act, 2017 which states “Any treatment or process undertaken by a person on goods belonging to another registered person” hence any work/transaction between distinct person ( as in your case ) can not be covered under definition of Job work therefore being no job work and material on delivery challan can not be sent to the second unit rather to issue tax Invoice instead of and after completion of work from the second unit you should need to raise tax invoice of value inclusive of work charges. So far as section 143 of CGST there is no discernible rulings except mentioning that goods belong to ANOTHER REGISTERED PERSON.
I am registered dealer under GST. I want to do some job work for others. Should I register for job work and what will be the GST for job work ?
There would be no separate registration as job worker. Refer SAC heading 9986 and 9988 for GST rates on different kinds of job work.
JOB WORKER RECEIVED A DEBIT NOTE. IS IT NEED TO SHOW IN GSTR 1?
Yes
We are purchasing raw material on behalf of principle for job work. and we are issuing to invoice to principle one for raw material and second for job work and one more thing is that we are issue invoice on party name with C/o our name at our address is that all right, because personnel of principle seat at our office. Please tell.
A challan must be issued by the principle to job worker for goods sent for job work. The job worker would only issue an invoice to the principle for job work done. The address must be the principal place of business of the party.
Is e way bill required in case of job work if the principal additional place of business is a location of job worker?
As job worker is declared as an additional place of business, job worker needs to generate the e-way bill.
We are an MSME unit working from Barwala dist. Panchkula and this place is app 20 Km from main town Panchkula. We get a lot of job work done by parties who are in Panchkula.
We do issue challan for transfer of material and receive the bill as per the job orders etc. under GST haw do we account this and also what will be the E-way bill formation.
REgards
You can claim I.T.C. of inputs & capital goods sent to job worker provided the conditions related to ‘time limit for return of goods’ are satisfied. After receiving back the goods from job-worker, you can normally prepare tax invoice when such goods are sold. If goods are sent for job work or received back from the job worker, the e-way bill has to be issued.
Refer http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-15112017.pdf;jsessionid=33E3F4FDC66FE3DA07CA38CC5C251B69
I have parts received from a domestic supplier, which is rejected, can I send it back to the supplier for Rework and Return under Job-Work vide a Delivery Challan without payment of GST? Would appreciate your immediate response. Thanks.
The registered supplier would issue a credit note in this case to the buyer for goods returned. When the defects are removed and sent back to the buyer, a fresh invoice would be issued.
Sir/ Madam Please need your valuable advice, We have two units on same PAN & same location name & nearby. one unit is mfg. & in the second unit, we want to do a job work. which job work challan we have to issue to the second unit? and after completion of job work from the second unit should we need to raise tax invoice or challan? what is section 143 says?
Please help.
PLEASE SPECIFY WHERE WE HAVE to FILL THE JOBWORK CHALLAN DETAIL IN GSTR 1 FORM STILL, WE HAVE NOT FILED ITC 04 NOW WE CAN FILE ANY PENALTY
Yes, you can file but with late fees.
I would like to know the impact of GST when the jobworker is working in the premises of the principal it sold while it is an ongoing process where the jobworker performs various process on the goods of the principal in the premises of the principal itself?
Although it satisfies the definition of job-work under section 2(68) of the CGST Act, 2017, it is evident that the procedure prescribed involves the movement of goods, issue of challans, filing an ITC-4 return and other aspects. In case the person does any work in the premises of the principal on goods belonging to the principal, it should be treated as a supply of service other than job-work.
I WANT FRANCHISE