JOB WORK 
Job - work means ' any treatment or process undertaken by a person on goods belonging to another registered person. The one who does the said job would be termed as 'job worker' The ownership of the goods does not transfer to the job- worker is required to carry out the process specified by the principal on the goods.
Registration of a job worker: Job work is a service. Job worker is required to obtain registration if his aggregate turnover exceeds Rs. 20 lakhs.
Procedural aspects for job work: 1. A registered person under intimation can send/receive inputs or capital goods without payment of tax, provided the inputs or capital goods are brought back within one year (for inputs) and three years (for capital goods) of their being send out.
2. The principal is allowed to do so. the tax paid on input or capital goods (ITC) can be claimed by the principal provided the inputs or capital goods are received back within one year and three years respectively.
(Provided the principal had declared the unregistered job worker's premises as his additional place of business or if the job worker is a registered person or if supply of such goods is notified by the commissioner)
3. If the input or capital goods are not received back or are not supplied from the place of business of the job worker within the prescribed time limit, it would be treated as supply and the principal would be treated as supply and the principal would be liable to pay tax
Input Tax credit on goods supplied to job worker: The principal (a person supplying taxable goods to the job worker) shall be entitled to take the credit of input tax paid on inputs sent to the job-worker for the job-work, Further, the proviso also provided that the principal can take the credit even when the goods have been directly supplied to the job-worker without being brought into the premises of the principal. The principal need not wait till the inputs are first brought to his place of business.
Time Limits for the return of processed goods: Inputs and Capital goods after processing shall be returned back to principal within one year or three years respectively of their being sent out. further, the provision of return of goods is not applicable in case of Moulds and dies, Jigs and fixtures or tools supplied by the principal to job- worker.
Maintenance of books of accounts: It is completely the responsibility of the principal to maintain proper accounts of job work related to inputs and capital goods.
The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax.
Transitional provisions: Input as such, or partially input which are sent to a job-worker prior to introduction of GST under the provisions of existing law (central Excise) and if such goods are returned within 6 months from the
day (i.e. the date of implementation of GST) no tax would be payable. If such goods are not returned within prescribed time, the input tax credit availed on such goods will be liable to be recovered. If the manufactured goods are removed, prior to the appointed day, without payment of duty for testing or any other process which does not amount to manufacture, and such goods are returned within 6 months from the appointed day, then no tax will be payable. For the purpose of these provisions during the transitional period, the manufacturer and the job-worker are required to declare the details of such goods sent/received for job-work in prescribed format GST TRAN - 1, within 90
The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax.
Transitional provisions: Input as such, or partially input which are sent to a job-worker prior to introduction of GST under the provisions of existing law (central Excise) and if such goods are returned within 6 months from the
day (i.e. the date of implementation of GST) no tax would be payable. If such goods are not returned within prescribed time, the input tax credit availed on such goods will be liable to be recovered. If the manufactured goods are removed, prior to the appointed day, without payment of duty for testing or any other process which does not amount to manufacture, and such goods are returned within 6 months from the appointed day, then no tax will be payable. For the purpose of these provisions during the transitional period, the manufacturer and the job-worker are required to declare the details of such goods sent/received for job-work in prescribed format GST TRAN - 1, within 90
days of the introduction of GSST.
