{"id":604,"date":"2020-05-11T12:43:32","date_gmt":"2020-05-11T07:13:32","guid":{"rendered":"https:\/\/vdtc.co.in\/?p=604"},"modified":"2020-05-11T12:43:33","modified_gmt":"2020-05-11T07:13:33","slug":"gst-on-job-work","status":"publish","type":"post","link":"https:\/\/vdtc.co.in\/?p=604","title":{"rendered":"GST on job work"},"content":{"rendered":"\n<p>Job work means processing or working on raw materials or semi-finished goods supplied by the principal producer to the job worker. This is to complete a part or whole of the process which results in the manufacture or finishing of an item or any other essential operation.<\/p>\n\n\n\n<p>For example, big shoe manufacturers send out the half-made shoes to smaller manufacturers to fit in the soles. Then the job workers send back the shoes to the principal manufacturer.<\/p>\n\n\n\n<p>According to the GST Act, job work means any treatment or process undertaken by a person on goods belonging to another registered person. The person doing this kind of job is called a job worker.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>ITC on goods sent for job work<\/strong><\/h3>\n\n\n\n<p><strong>A tax credit will be allowed to the Principal manufacturer on the goods sent for job work.<\/strong><\/p>\n\n\n\n<p><strong>However, there are certain conditions to be fulfilled.<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Goods can be sent to job worker:<\/strong><ul><li>From the principal\u2019s place of business<\/li><li>Directly from the place of supply of the supplier of such goods<\/li><li>ITC will be allowed in both cases.<\/li><\/ul><\/li><li><strong>The effective date for goods sent depends on the place of business:<\/strong><ul><li>Sent from principal\u2019s place of business- Date on which goods send<\/li><li>Sent directly from the place of supply of the supplier of such goods- Date of receipt by the job worker<\/li><li>The effective date is important because it will help to determine the point of taxation if the goods are not returned back within the specified time (see point C below)<\/li><\/ul><\/li><\/ol>\n\n\n\n<p><strong>The Principal manufacturer must receive the goods back within the following period:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Capital Goods-&nbsp; three years<\/li><li>Input Goods- one year<\/li><\/ul>\n\n\n\n<p>Such goods will be treated as supply from the effective date if they are not received back with the period mentioned above and tax will be payable by the principal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Challan<\/strong><\/h3>\n\n\n\n<p>All the goods sent for job work must be accompanied by a challan.<\/p>\n\n\n\n<p>The challan will be issued by the principal.<\/p>\n\n\n\n<p>It will be issued even for the inputs or capital goods sent directly to the job-worker.<\/p>\n\n\n\n<p>The details of challans must be shown in\u00a0FORM GSTR-1.<\/p>\n\n\n\n<p>Details of challans must also be filed through Form GST ITC \u2013 04.<\/p>\n\n\n\n<p><strong>The challan I shall be issued containing the following Details:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Date and number of the delivery challan<\/li><li>Name, address, and GSTIN of the consignor and consignee<\/li><li>HSN code, description, and quantity of goods<\/li><li>Taxable value, tax rate, tax amount- CGST, SGST, IGST, UTGST separately<\/li><li>Place of supply and signature<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Form ITC-04<\/strong><\/h3>\n\n\n\n<p>Every Quarter FORM GST ITC-04 must be submitted by the principal<\/p>\n\n\n\n<p><strong>. He must include all the details of challans in respect of the following-<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Goods dispatched to a job worker or<\/li><li>Received from a job worker or<\/li><li>Sent from one job worker to another<\/li><\/ul>\n\n\n\n<p>All of these must be furnished on or before the 25th&nbsp;day of the month succeeding in the quarter. For example, for the Apr-Jun quarter, the due date is 25th&nbsp;Jul.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FORM GST TRAN-1<\/strong><\/h3>\n\n\n\n<p>The job worker and the principal manufacturer have to submit a <strong>FORM GST TRAN-1<\/strong> and mention following required details of stock held by job worker for principal\/ with job worker\/by job<\/p>\n\n\n\n<p>The due date for FORM GST TRAN-1 is 30<sup>th<\/sup>&nbsp;November 2017<\/p>\n\n\n\n<p>There is a need to specify the stock of the inputs, semi-finished goods or finished goods held by them on 1<sup>st<\/sup>&nbsp;July 2017.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>GST Rates on Job work<\/strong><\/h3>\n\n\n\n<p>Job work and GST Rate<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Agriculture, fishing, forestry, animal husbandry&nbsp; = 0%<\/li><li>Intermediary services related to cultivation and animal rearing = 0%<\/li><li>Printing of Newspapers = 5%<\/li><li>Textile and textile product = 5%<\/li><li>Jewellery = 5%<\/li><li>Printing of books including Braille books, journals, and periodicals = 5%<\/li><li>Processing of hides leather and skin = 5%<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Job work means processing or working on raw materials or semi-finished goods supplied by the principal producer to the job worker. This is to complete a part or whole of the process which results in the manufacture or finishing of an item or any other essential operation. For example, big shoe manufacturers send out the<\/p>\n<p><span class=\"more-wrapper\"><a class=\"more-link button\" href=\"https:\/\/vdtc.co.in\/?p=604\">Continue reading<\/a><\/span><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":["post-604","post","type-post","status-publish","format-standard","hentry","category-gst"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/604"}],"collection":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=604"}],"version-history":[{"count":1,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/604\/revisions"}],"predecessor-version":[{"id":605,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/604\/revisions\/605"}],"wp:attachment":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}