1. What does ‘job work’ mean?
Ans: ‘Job work’ means undertaking any treatment or process by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly, as defined in Section 2(68) of CGST Act 2017.
2. For the purposes of job work what does the term ‘input’ include
Ans: For the purposes of job work, the term ‘input’ includes intermediate goods arising from any treatment or process carried out on the inputs by the Principal or the job worker.
3. What kind of goods can be sent at another place for job work?
Ans: Goods on which Input Tax Credit (ITC) is taken can be sent at another place for job work as per provisions of Section 143 of CGST Act 2017.
4.Is there a requirement to intimate the concerned tax authorities about sending goods for job work?
Ans: Intimation is required to be given for sending goods for job work.This can be done by filling details in the monthly returns.
5.What kind of goods can be sent for job work purpose?
Ans: Inputs and semi-finished goods can be sent for job work.
6.What is the time limit within which inputs should return to the Principal?
Ans: Inputs sent for job work must return to the Principal within one year.
7. What is the time limit within which Capital goods have to be returned to the Principal?
Ans: Capital goods must return to Principal within three years. This time limit is not applicable for sending moulds, dies, jigs, fixtures and tools to the place of job worker.
8. Can a job worker dispatch goods directly from his place of business?
Ans: Any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax if such job worker is registered, or by the principal, if the job worker is not registered, as per Section 143(5) of CGST Act 2017.
9.What documentation are required when materials are being sent for job work?
Ans: When material is sent for job work, Delivery Challan should be prepared in triplicate containing details specified in Rule No.8 (1) of Invoice Rules.
10.Are details of challans in respect of goods dispatched from a job worker be reflected in Returns?
Ans: Yes. Details of challan in respect of goods dispatched to a job worker shall be included in Return Form GSTR-1.
11.What will happen if inputs/capital goods are not received from a job worker during prescribed period?
Ans: If inputs/capital goods are not received during prescribed period, GST will be payable for which challan issued will be considered as ‘invoice’.
12.What will happen to the inputs or semi-finished goods sent by Principal to job worker before 01.07.2017?
Ans: If inputs or semi-finished goods sent by Principal are lying with job worker on 01.07.2017, Principal should submit stock statement as on 01.07.2017 and then he can take input tax credit of Central excise duty or State VAT paid on those goods, as per section 141 of CGST Act 2017.
13.Can goods be supplied from job worker’s place
Ans: Yes, this provision allows supply of goods from job workers premises but only on payment of taxes within India and without payment of taxes for export.
14. Whether any time period has been prescribed within which goods have to be returned to principal?
Ans: Yes, inputs are to be returned to Principal or supplied from the place of business of job worker within one year of their being set up.
15. Whether there is any time limit for capital goods also?
Ans: Yes, capital goods, other than moulds and dies, jigs and fixtures, or tools sent for job work, are to be returned to Principal or supplied from the place of business of job worker within three years of their being sent out.
16.Who will undertake responsibility and accountability for any contravention under the Law during job work?
Ans: Principal will undertake responsibility and accountability for any contravention under the law during job-work.
17. What is the tax treatment under GST for inputs removed for job work before the appointed day?
Ans: Where any inputs received in a factory had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, re-conditioning or any other purpose in accordance with the provisions of earlier law prior to the appointed day and such inputs, after completion of the job work, are returned to the said factory on or after the appointed day, no tax shall be payable if such inputs are returned to the said factory within six months from the appointed day.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018