TMI BlogJob WorkX X X X Extracts X X X X X X X X Extracts X X X X ..... goods, without payment of tax, to a job worker for job work and from there subsequently to another job worker(s) and shall either bring back such inputs/capital goods after completion of job work or otherwise within 1 year/3years of their being sent out or supply such inputs/capital goods after completion of job work or otherwise within 1 year / 3 years of their being sent out, from the place of business of a job worker on payment of tax within India or with or without payment of tax for export. Q 3. Is a job worker required to take registration? Ans. Yes, as job work is a service, the job worker would be required to obtain registration if his aggregate turnover exceeds the prescribed threshold. Q 4. Whether the goods of principal directly supplied from the job worker s premises will be included in the aggregate turnover of the job worker? Ans. No. It will be included in the aggregate turnover of the principal. However, the value of goods or services used by the job worker for carrying out the job work will be included in the value of services supplied by the job worker. Q 5. Can a principal send inputs and capital goods directly to the premises of job worker w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er within the prescribed time limit, it would be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out by the principal (or on the date of receipt by the job worker where the inputs or capital goods were sent directly to the place of business of job worker). Thus the principal would be liable to pay tax accordingly. Q 10. Some capital goods like jigs and fixtures are non-usable after their use and normally sold as scrap. What is the treatment of such items in job work provisions? Ans. The condition of bringing back capital goods within three years is not applicable to moulds, dies, jigs and fixtures or tools. Q 11. What would be treatment of the waste and scrap generated during the job work? Ans. 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. Q 12. Whether intermediate goods can also be sent for job work? Ans. Yes. The term inputs, for the purpose of job work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are applicable to a registered person. Thus, it is only a registered person who can send the goods for job work under the said provisions. Q 19. In case the principal and job worker are located in different states, is it necessary for the job worker to obtain compulsory registration? Ans. No. Where the principal and the job worker are located in different States, the requirement for registration flows from section 24(i) of the CGST Act which provides for compulsory registration of suppliers making any inter-State supply of services. However, exemption from registration has been granted in case the aggregate turnover of the inter-state supply of taxable services does not exceed ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu Kashmir in a financial year vide n otification No. 10/2017 Integrated Tax dated 13.10.2017 . Therefore, a job worker is required to obtain registration only in cases where his aggregate turnover, to be computed on all India. Q 20. In case of inter-state movement of goods for job work, is generation of e-way bill necessary? If so by whom? Ans. Yes. The third proviso to rule 138(1) of the CGST Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly from the customs station of import, the goods may move from the customs station of import to the place of business/premises of the job worker with a copy of the Bill of Entry and the principal shall issue the challan under rule 45 of the CGST Rules and send the same to the job worker directly. Q 25. What are the legal/documentary requirements where goods are returned in piecemeal by the job worker? Ans. In case the goods after carrying out the job work, are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker. Q 26. What is the mode and manner in which the principal is required to intimate the details of goods sent for job work? Ans. Rule 45(3) of the CGST Rules provides that the principal is required to furnish the details of challans in respect of goods sent to a job worker or received from a job worker or sent from one job worker to another job worker during a quarter in FORM GST ITC-04 by the 25th day of the month succeeding the quarter or within such period as may be extended by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . How would be the time and place of supply be determined, where the supply is made by the principal from the premises of the job worker? Ans. Since the supply is being made by the principal, the time, value and place of supply would have to be determined in the hands of the principal irrespective of the location of the job worker s place of business/premises. Further, the invoice would have to be issued by the principal. Q 31. Whether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the CGST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017? Ans. Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the CGST Act shall not be allowed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies of such goods. However, in cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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