TAXATION OF JOB WORK IN GST
| Goods removed under section 43 A | Goods removed other than section 43 A |
| No GST payables on –Supply of material from principal to job worker or vice versa. | GST payables on –Supply of material from principal to job worker or vice versa. |
| GST payable on Job work charges | NO GST payable on Job work charges |
Procedure for Removal of Goods in Job Work
GST will be paid by the Principal manufacturer whether delivery made directly by the JOB worker or by the principal manufacturer to the customer. NO GST on goods supply by the principal to job worker or vice versa.
Section 43(A)
Permission has to be taken from the GST officers. In GST it is still not clear whether permission need to be taken for the every transaction or for every job work.
Definition of Supply in JOB work
Goods supply by principal to job work is not treated as supply of goods
Goods supply by the JOB worker after completion of JOB work by registered job worker shall be treated as supply of goods by the “principal”
Can delivery of the Goods can done by the JOB worker?
Yes, Delivery can be done by the JOB worker provided Principal declares the place of Job work as a additional place of the business.
JOB WORK in GST
Consignment Agent in GST
Where a person acting as an agent for an agreed commission or brokerage either supply or receives any goods /services on behalf of any principal, the transaction between such principal and agent will be treated as supply.
Principal and Agent are different entity in GST.
Principal send the goods to consignment agent has to charged GST on value determined as per valuation rules.
