Page 239 - CA Final GST

Badlani Classes

Chapter : 22

Job Work

Sec 2(68) Definition of job-work
“Job work” means any treatment or process undertaken by a person on goods
belonging to another registered person and the expression “job worker” shall
be construed accordingly.
Sec 22 Registration
Threshold for registration: Every supplier shall be liable to be registered
under CGST Act in the State or Union territory, from where he makes a taxable
supply of goods or services or both, if his aggregate turnover in a FY exceeds
Rs. 20 lacs(Rs. 10lacs in Special Category States).
Exclusion from aggregate turnover: The supply of goods, after completion
of job-work, by a registered job worker shall be treated as the supply of goods
by the principal referred to in S. 143, and the value of such goods shall not be
included in the aggregate turnover of the registered job worker.
Exemption notification: Job-workers making inter-State supply of services to
a registered person are exempted from obtaining registration vide NN-07/2017
–Integrated Tax, dated 14-Sep-2017.
Sec143 Job – work procedure
(a) Goods sent to a job-worker: The principal may send any inputs or capital
goods, without payment of tax, to a job worker for job-work and from there
subsequently send to another job worker and likewise, and shall:
(i) Bring back to place of business: Bring back after completion of job
work or otherwise, without payment of tax within following period of
their being sent out:
Inputs 1 year
Capital goods other than moulds and dies, jigs and 3 years
fixtures or tools

(ii) Supply of inputs or capital goods: Supply after completion of job
work or otherwise, of their being sent out from the place of business
of a job worker on payment of tax within India or with/without
payment of tax for export, as the case may be within the following
period:
Inputs 1 year
Capital goods other than moulds and dies, jigs and 3 years
fixtures or tools

(b) Supply of goods from place of business of job-worker: The principal
may supply the goods from the lace of business of a job worker if he
declares the place of business of the job-worker as his additional place of
business except in a case:
(i) where the job worker is registered under S. 25; or
(ii) where the principal is engaged in the supply of such goods as may be
notified by the Commissioner.
(c) Supply of waste or scrap generate: Any waste and scrap generated Page238
during the job work may be supplied by a registered job worker directly

Central Goods & Services Tax Act, 2017