1. Introduction
The Goods and Services Tax (GST) framework permits a registered principal (manufacturer or supplier) to send inputs and capital goods to a job worker without immediate payment of tax. The concept of “job work” enables outsourcing of processes such as treatment, processing, assembly, or any other activity on goods belonging to the principal. To ensure smooth tax compliance and avoid revenue leakage, GST law prescribes conditions, timelines, documentation, and reporting obligations related to such transactions.
Section 2(68) of the CGST Act, 2017 defines job work as ‘any treatment or process undertaken by a person on goods belonging to another registered person. The one who does the said job would be termed as ‘job worker’. The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods.
2. Legal References
3. Procedure
a. Sending Goods to Job Worker
b. Time Limits for Return of Goods
If the inputs sent for job work are not returned to the principal, or not supplied from the job worker’s premises as allowed under Section 143(1)(a) or (b), within one year from the date they were sent, it will be considered that the principal has supplied those inputs to the job worker on the date they were originally sent.
Note: If the inputs were sent directly to the job worker (without first coming to the principal), the one-year period will be counted from the date the job worker received the inputs
If capital goods sent for job work are not returned to the principal within three years from the date they were sent, it will be treated as if the principal has supplied those capital goods to the job worker on the date of dispatch.
Note: If the capital goods were sent directly to the job worker, the three-year period will be counted from the date the job worker received them.
c. Waste and Scrap
d. Direct Supply from Job Worker Premises
4. Forms
(i) Date and number of the delivery challan;
(ii) name, address and Goods and Services Tax Identification Number of the consigner, if registered;
(iii) name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered;
(iv) Harmonised System of Nomenclature code and description of goods;
(v) Quantity (provisional, where the exact quantity being supplied is not known);
(vi) taxable value;
(vii) Tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess , where the transportation is for supply to the consignee;
(viii) Place of supply, in case of inter-State movement; and
(ix) Signature.
5. Delivery Challan (Rule 45 of CGST Rules):
6. Returns
Aggregate Turnover in the preceding financial year | Filing Frequency | Periods / Deadlines |
More than ₹ 5 Crore | Half-yearly | For April-September → due by 25th October |
Up to ₹ 5 Crore | Annually | Due by 25th April following the end of the financial year |
7. Penalties for Non-Compliance in Return of Goods from Job Worker
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