Scribd Logo
Upload

Welcome to Scribd!

  • 18-Job Work Provisions

    Uploaded by

    nisho tyagi
    6 views8 pages
    This document discusses job work provisions under GST. It defines job work as any process undertaken on goods belonging to another person. The job work provision was introduced to treat the transfer of goods from principal to job worker as a supply, to avoid misuse of input tax credit. Job work is treated as a supply of services, whether or not it amounts to manufacturing. Goods must be returned within one year, otherwise it will be deemed as a supply from the date they were originally sent. Capital goods must be returned within three years, otherwise it will be deemed as a supply from the date sent. The document provides procedures and timelines for job work to control the movement of goods and avoid permanent transfer.

    Original Description:

    Original Title

    18-Job work provisions

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses job work provisions under GST. It defines job work as any process undertaken on goods belonging to another person. The job work provision was introduced to treat the transfer of goods from principal to job worker as a supply, to avoid misuse of input tax credit. Job work is treated as a supply of services, whether or not it amounts to manufacturing. Goods must be returned within one year, otherwise it will be deemed as a supply from the date they were originally sent. Capital goods must be returned within three years, otherwise it will be deemed as a supply from the date sent. The document provides procedures and timelines for job work to control the movement of goods and avoid permanent transfer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views8 pages

    18-Job Work Provisions

    Uploaded by

    nisho tyagi
    This document discusses job work provisions under GST. It defines job work as any process undertaken on goods belonging to another person. The job work provision was introduced to treat the transfer of goods from principal to job worker as a supply, to avoid misuse of input tax credit. Job work is treated as a supply of services, whether or not it amounts to manufacturing. Goods must be returned within one year, otherwise it will be deemed as a supply from the date they were originally sent. Capital goods must be returned within three years, otherwise it will be deemed as a supply from the date sent. The document provides procedures and timelines for job work to control the movement of goods and avoid permanent transfer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Job Work

    Job Work Provisions

     Definition of Job work


     Origin of job work provision
     Treatment of job work
     Procedure of job work
     ITC of goods sent on Job work
     Job worker’s turnover as clarified under section 22.
    Meaning of Job work

    Job work means any process undertaken by the person on the


    goods belonging to another person.
    Origin of Job work provision

     As per Sch. 1 of cgst act- entry 1 , if there is permanent transfer


    of business assets without consideration where input tax credit
    has been availed- it will be treated as supply.
     Incase of principal transferring goods to job-worker for job work
    ,In the eye of law , it is a kind of permanent t/f of goods because
    Inputs/goods sent to job worker are not returned back to
    principal in the same form , so it can be proved as Permanent t/f
    of goods to Job worker in absence of any controlling measures ,
    hence Sec 143 inserted by the govt. to lay down time lines to
    bring back such goods.
    Treatment of Job work

     As per Sch. 2 of cgst act- para 3 , Job work will be treated as


    supply of Services irrespective such job work amounts to
    manufacturing activity or not.
    Procedure of Job work (Sec 143)

    Job work Procedure

    Input Sent for Job Capital goods sent for job


    work work

    Bring Back with in


    one Year After 1 Year Bring back in time 3 After 3 years
    Years
    Deemed as Supply Deemed as Supply from the
    No Tax from date when it was date it was sent
    sent
    No Tax Liable to Pay
    Liable to pay (Tax
    +Interest) ( Tax + Interest)
    No Time limit to receive back
    To Control
    motion of
    another
    Tool

    To
    support
    another
    Tool

    Moulds & dies Jigs & Fixtures Tools


    Thank You
    Presented by:

    Compiled by:
    CA Rahul Jain
    Faculty of ICAI
    FCA Gurjit Singhfor GST
    Bhullar
    (M) +9999413882
    Email: gs.bhullar@rediffmail.com

    getcarahuljain@gmail.com

    You might also like