{"id":9430,"date":"2020-05-26T17:08:25","date_gmt":"2020-05-26T11:38:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=9430"},"modified":"2023-04-11T11:23:52","modified_gmt":"2023-04-11T05:53:52","slug":"job-work-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/","title":{"rendered":"A Complete Outlook on Job Work under GST Regime"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Job work under GST means any treatment or process initiated by an individual on goods belonging to a registered entity. Thus, we can say that job worker is the registered or unregistered person whose job responsibility is managing or processing the goods of a registered entity whereas the principal is that registered person on whose behalf undertaking of job work takes place. As mentioned in <strong>Section 19 of the CGST Act, 2017<\/strong>, any person that supplies goods to the job-worker is the principal.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Concept_of_Job_Work_under_GST_Act\" >Concept of Job Work under GST\nAct<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Job_Work_under_GST-_Procedure\" >Job Work under GST- Procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Responsibilities_of_the_Principal\" >Responsibilities of the\nPrincipal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#E-way_Bill_for_Job_Work_under_GST_Provisions\" >E-way Bill for Job Work under\nGST Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#GST_Rate_on_Job_Work\" >GST Rate on Job Work<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Return_of_Goods_to_Principal\" >Return of Goods to Principal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Exemptions_of_GST_on_Job_Work\" >Exemptions of GST on Job Work<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Waste_Generated_at_the_Premises\" >Waste Generated at the Premises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Cases_in_Which_Principal_Manufacturer_can_Avail_Credit\" >Cases in Which Principal\nManufacturer can Avail Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/#Bottom_Line\" >Bottom Line<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Job_Work_under_GST_Act\"><\/span>Concept of Job Work under GST\nAct<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Job workers have a significant role to play in the economy of India due to their engagement in the input or unfinished goods processing. In four points, we are explaining the concept of job work under GST-<\/p>\n\n\n\n<ul><li>The principal manufacturer would perform its duty by <strong>sending input or capital goods<\/strong>.<\/li><li>Input or capital goods get sent without <strong>tax payment<\/strong> to a job worker and beneath intimation.<\/li><li>In case of any requirement, goods would reach into the hands of another job worker from one job worker.<\/li><li>Finally, after the job work gets over, the <strong>principal manufacturer<\/strong> would receive back the goods without tax payment.<\/li><\/ul>\n\n\n\n<p>The GST law has boosted this sector in growing vigorously and claiming tax credit on job work supplies has become convenient with the GST law. Let&#8217;s understand the things by an example-<\/p>\n\n\n\n<p><strong>Example: &#8211;<\/strong> Job workers are the small manufacturers involved in manufacturing bottle bodies along with their caps in the plastic bottle industry. Job worker obtains the raw material from the principal manufacturer, and job worker transfers the finished goods to the principal manufacturer after completion of the processing process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Job_Work_under_GST-_Procedure\"><\/span>Job Work under GST- Procedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The principal manufacturer needs to construct a <strong>&#8216;Delivery Challan&#8217;<\/strong> by following the prescribed format. The motive behind this is to send semi-finished goods or inputs without payment of duty and also <strong>without ITC reversal<\/strong> to a job worker. The Delivery Challan must hold the following information. <\/p>\n\n\n\n<p><strong>The information\u2019s are as follows- <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"575\" height=\"373\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-127-e1590493460884.png\" alt=\"Job Work under GST- Procedure\" class=\"wp-image-9451\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-127-e1590493460884.png 575w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-127-e1590493460884-300x195.png 300w\" sizes=\"(max-width: 575px) 100vw, 575px\" \/><\/figure>\n\n\n\n<ul><li>GSTIN of the consignor along with the consignees&#8217; GSTIN<\/li><li>Form GSTR-1 represents the details concerning the challans.<\/li><li>With the help of Form GST ITC-04, details of challans should get filed.<\/li><li>On a quarterly basis, Form GST ITC-04 requires submission until the 25th day of the month.<\/li><\/ul>\n\n\n\n<p><strong>The Form GST Input Tax Credit- 04 carries the following details-<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"521\" height=\"250\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-128.png\" alt=\"Form GST Input Tax Credit\" class=\"wp-image-9435\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-128.png 521w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-128-300x144.png 300w\" sizes=\"(max-width: 521px) 100vw, 521px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Responsibilities_of_the_Principal\"><\/span>Responsibilities of the\nPrincipal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Account maintenance of input as well as credit goods<\/li><li>As per the invoice rules <strong>(Rule 10<\/strong>) under the Goods and Services Tax Act, the principal is the flag bearer of issuing the challan to the job-worker for the capital goods and inputs<\/li><li>Making a declaration that the additional place of Job workers&#8217; conducting his business is his premise in case of direct export of goods to the <strong>third party person<\/strong> and the job worker has not gone through the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>process of GST registration<\/strong><\/a><\/li><li>The jurisdictional officer must get <strong>intimated for maintaining<\/strong> the details of proposed input goods. Besides this, the job worker delivers the processing nature.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"E-way_Bill_for_Job_Work_under_GST_Provisions\"><\/span>E-way Bill for Job Work under\nGST Provisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>GST provisions on the e-way bill give an implication that all the registered persons who are responsible for the movement of goods having consignment value surpassing the <strong>amount of Rs 50,000<\/strong> even in those cases where movement takes place for reasons other than supply must generate e-way bill. Thus, the e-way bill gets generated even in the case of goods movement for job work.<\/li><li>Irrespective of the consignment value, <strong>e-way bill<\/strong> would get generated either by the job worker who is registered or by the principal manufacturer in the matter of inter-territorial movement of goods.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-on-food-services-and-food-items\/\">GST on Food Services and Food Items: All that you need to Know\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Rate_on_Job_Work\"><\/span>GST Rate on Job Work<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The GST council has brought a reduction in the goods and service tax rate on the engineering job work. Earlier, the GST rate was <strong>18%,<\/strong> and now the GST rate stands at <strong>12%.<\/strong><\/li><li>In the case of diamond supply job work, the GST rate was <strong>5%,<\/strong> and now the GST rate is <strong>below 1.5%.<\/strong><\/li><li>Clarifications in the latest <strong>GST circular 126\/45\/2019<\/strong> confirms that every registered taxpayer under job work would get imposed with <strong>12% goods and service tax<\/strong> and consequently the taxpayers under GST job work who are yet not registered would have to give <strong>18% GST rate<\/strong> as well.<\/li><li>In the case of job work on Agriculture, animal husbandry, fishing, and forestry, the <strong>GST rate is 0%.<\/strong><\/li><li>In the case of job work on animal rearing and cultivation related services, the <strong>GST rate is 0%.<\/strong><\/li><li>In the case of job work on the processing of leather, skins, and hides, the <strong>GST rate is 5%.<\/strong><\/li><li>In the case of job work on the Textile along with the textile products and job work on newspaper printing, the <strong>GST rate is 5%.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_of_Goods_to_Principal\"><\/span>Return of Goods to Principal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ngoods send out must get received back by the principal manufacturer within the\ntime frame-<\/p>\n\n\n\n<ul><li>Input Goods- 1 Year<\/li><li>Capital Goods- 3 Years<\/li><\/ul>\n\n\n\n<p>Under job work, the return of goods to the principal is one of the most crucial aspects.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemptions_of_GST_on_Job_Work\"><\/span>Exemptions of GST on Job Work<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Under\nthe Ministry of Agriculture, Cooperation and Family Welfare, services rendered\nby the National Centre for Cold Chain Development<\/li><li>Services\nby means of retail packing, pre-cooling, waxing, ripening, labeling of fruits,\nand pre-conditioning<\/li><li>Slaughtering\nof animals<\/li><li>Cultivation\nof plants as well as the rearing of many life forms of animals, an exception is\nthe horse rearing for fuel, food, raw material, or other same kinds of products<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Waste_Generated_at_the_Premises\"><\/span>Waste Generated at the Premises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As stated under<strong> Section 143(5) of the CGST Act, 2017<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/15689\/1\/A2017-12.pdf\"><strong>[1]<\/strong><\/a><\/sup>, the registered job worker might have to supply the waste generated at the job worker premises from his business site on payment of tax, in this case, job worker will pay the tax.<\/li><li>On the other hand, if a job worker is unregistered, then the principal manufacturer would go on clearing waste of such kind, and the goods and service tax would be payable from the principal manufacturer end.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cases_in_Which_Principal_Manufacturer_can_Avail_Credit\"><\/span>Cases in Which Principal\nManufacturer can Avail Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nprincipal manufacturer can avail credit on-<\/p>\n\n\n\n<ul><li>Goods directly supplied to job worker<\/li><li>Input tax paid on inputs given to job worker<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bottom_Line\"><\/span><strong>Bottom Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Through this blog, you might have understood the concept of job work under GST Act. We have covered procedures related to job work under GST to make you know about those essential details that Challan must hold. Our Experts at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> would make you GST ready and simplify the process for you as well.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/elucidation-on-gst-refund-issues\/\">Elucidation on GST Refund Issues \u2013 Recent Updates\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Job work under GST means any treatment or process initiated by an individual on goods belonging to a registered entity. Thus, we can say that job worker is the registered or unregistered person whose job responsibility is managing or processing the goods of a registered entity whereas the principal is that registered person on whose [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":9445,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[600],"acf":{"service_id":"68"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":6299,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9430"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=9430"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9430\/revisions"}],"predecessor-version":[{"id":54854,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9430\/revisions\/54854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9445"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=9430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=9430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=9430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}