Job Work under GST-Advance Ruling Compilation

As per section 2(68) of the CGST Act, 2017, "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. As per section 143 of the CGST Act, 2017, a registered person may send any inputs or capital goods, without payment of tax, to a job worker for job work. However, there are certain conditions to be fulfilled to do so. They are as follows:

A) Bring back inputs, after completion of job work or otherwise, or capital goods, within one year and three years, respectively, of their being sent out, to any of his places of business.

B) Supply such inputs, after completion of job work or otherwise, or capital goods, within one year and three years, respectively, of their being sent out from the place of business of a job worker.

However, GST is charged by the job worker on his job work charges to be recovered from the principal. Following are the GST rates applicable for job work:

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There are plenty of Advance Rulings on Job work and GST implications thereon. We have compiled it for you!

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Conclusion

Taxpayers should analyze provisions of the GST Act and Rules and also check various advance rulings on the subject to understand the exact taxability of the service with job work.

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