Question 2 - Whether goods sent by a taxable person to a job-worker will be treated as supply and liable to GST? Why? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 2. Whether goods sent by a taxable person to a job-worker will be treated as supply and liable to GST? Why? Ans. No. It will not be treated as a supply. In terms of proviso to Para 5 of Schedule I of the MGL the supply of goods by a registered taxable person (principal) to jobworker, in terms of Section 43A, shall not be regarded as supply of goods. Therefore, it can be inferred that no GST shall be applicable on the goods supplied by the registered principal to a job-worker.