prpri Job work under GST Job work under GST

Unlike earlier days, the manufacturing entities instead of carrying out entire operations themselves, outsource few processes to job workers. This helps the manufacturers to get the job done faster and more efficiently. Few other advantages are discussed below:

♦ Reduction and to keep check of operational costs

♦ Improves focus on core business of manufacturers

♦ Gain access to efficient facilities

♦ Streamlining and increasing efficiency for time-consuming processes

Job work under GST

This article is intended to clarify the current issues faced by the manufacturers and job workers under GST law and covers the following aspects:

a) Meaning & nature of job work

b) Registration under GST

c) Job work procedure

d) ITC claim on goods sent for job work

e) Valuation under job work

f) Time limit for returning goods sent for job work

g) Consequence when goods not returned within time

h) Waste and Scrap

i) Various rates in job work

j) Documents to be issued by manufacturer or job worker

k) Filing of ITC-04

l) E- Way bill

m) FAQ’s on job work

a) Meaning & Nature of job work:

The definition of job work has been defined in the Section 2(68) of CGST Act which means any treatment or process under taken by a person on goods belonging to another registered person. ‘Principal’ would be the registered person who sends the goods for job work. Treatment or process include packing, labelling, testing, re-conditioning, re-packing, inspection etc.,

In terms of clause 3 of Schedule II to CGST Act 2017, any treatment or process applied to another person goods is to be treated as supply of services.

b) Registration under GST

Where a job worker provides service of value greater than Rs. 20 lakh, he is required to register under section 22 of CGST Act 2017. To avail the benefits under GST, a job worker may also voluntarily register as provided under section 25(3) of CGST Act 2017. When there is inter-State supply of goods or services, the registration under GST is mandatory. However, the government has provided exemption from registration for job workers making inter-state supply of services unless they are covered under the following:

  • Job worker is registered under GST voluntarily/ or is registered as limit of 20 lakh is crossed, or;
  • Job worker provides services in relation to goods such as – Jewellery, goldsmiths and silversmiths wares and other articles of Chapter 71 of Customs Tariff.

 c) Job work procedure

According to Section 143(1) of CGST Act read with CGST Rule 45, principal can under intimation to the department through Form ITC-04 (based on Circular 38/2018), send any inputs or capital goods, without payment of tax, to a job worker for job work. Movement of goods without payment of tax from job worker to another job worker and likewise is permitted. The principal shall: –

a) Bring back inputs or capital goods from job worker premises within specified time limit, or;

b) Supply inputs or capital goods after completion of job work directly from the job worker premises within the specified time limit with payment of tax, or without payment of tax for zero-rated supplies. To supply goods directly from job worker premises, the following needs to be complied with:

i. Job worker has to be registered under GST.

ii. Supply of such goods are notified by Commissioner.

iii. If not covered under (i) & (ii), principal to include as additional place of business

According to Section 143(2), the responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.

 d) Availment of ITC on goods sent for job work

According to Section 19(2) of CGST Act, the principal can avail the ITC where goods are sent to job worker premises directly from the vendor location without coming to the principal’s premises.


Principal can avail ITC on such goods sent to job worker, provided the vendor mentions -customer as the principal and consignee as the job worker on the face of the invoice. In case of goods imported and directly sent to the job worker from the custom station, the principal requires to raise a delivery challan under Rule 55. Note principal would be eligible for the ITC on imported goods.

Valuation under Job Work

Generally, valuation under GST would be the transaction value, and such price would be considered as the sole consideration for the purpose of GST.

Although, practically, there are many expenses which are borne on behalf of the job worker by the principal. Any job worker liabilities borne by the principal on his behalf would have to be included as part of the transaction value u/S 15(2)(b) of CGST Act.

The key elements to identify such expenses are:

  • Whether it is a liability of the supplier (job worker)?
  • Has the recipient (principal) borne such expenses on behalf of the supplier? 

Although, the concept of ‘sole consideration’ having various Hon’ble Supreme Court decisions (erstwhile laws) summaries that any expenses which influence the value of the transactions must be included in the transaction value. Thus, Section 15(1) and that price is the sole consideration may be questioned.

Although, in the authors opinion, where the agreement between the job worker and principal clearly lays out various liabilities, and is in compliance with the requirements of Pure Agency (Rule 33), the price could be considered to be the sole consideration and transaction value under GST. 

e) Time limit for returning goods sent for job work

According to Section 19(3) read with 143(3) of CGST Act, when inputs (goods) are sent for job work without payment of tax and neither received back within 1 year nor supplied from the job worker premises, it shall be deemed to be supplied by the principal to job worker as on the date when the goods were sent out for job work.

According to Section 19(6) read with 143(4) of CGST Act, when capital goods are sent for job work without payment of tax and neither received back with in a period of 3 years nor supplied from the premises, it shall be deemed to be supplied by the principal to job worker as on the date when the goods were sent out for job work.

Provided where inputs/capital goods sent directly to job worker, the period will be counted from date of receipt of inputs/capital goods by the job worker.

Section 19(7) of CGST Act, extends the benefit that the time limit of 1/3 years will not be applicable for moulds, dies, jigs and fixture or tools sent out to a job worker.

Through amendment of CGST act with effect from 1st February 2019, the commissioner has been empowered to extend the time limit for return of goods sent on job work for a further period as given below:

  • Inputs – additional period of 1 year (totally 2 years)
  • Capital goods – additional period of 2 years (totally 5 years)

f) Consequence when goods not returned within time

If the inputs or capital goods are not returned within time limit specified, the principal is liable to pay tax along with interest @18% from the day goods sent out by deeming the activity as an outward supply. The department would earn interest on the following non-compliance.

Corresponding disclosure under GSTR-3B & GSTR-1.

Practically, unless job worker makes payment against invoice to the principal, he would not be eligible for credit u/s 16 of CGST Act. Therefore, suggest job worker to make payments, claim the credit, and include the same as part of valuation for services rendered. However other implications on financial statements needs to be considered.

To avoid disputes from department, ensure the extension of time limit to 2/5 years is availed. Also, option to return and receive back such inputs/capital goods could be explored.

g) Waste and Scrap

In case of supply of scrap:

a) If job worker is registered – Job worker may supply the scrap along with payment under GST.

b) If job worker is unregistered – the job worker should return scarp to the principal/ principal may supply the scrap directly from job worker premises under his invoice. (Note: Such premises to be an additional place of business of principal).

h) Various rates in job work

There is a common misunderstanding in the market that the GST rate for job work services would always be @18%. We have listed few of such exceptions, and recent updates in GST w.r.t job work rates:

  1. GST exempt:

a) Slaughtering of animals

b) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits.

c) Cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products/agricultural produce

d) Services provided by the National Centre for Cold Chain Development under the Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination

2) GST rate @ 5%:

a) Printing of newspaper, books, journals etc.

b) Textiles and textile products falling under chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)

c) Printing of all goods falling under chapter 48 or 49 falling under 5%.

d) Tailoring services

e) All products falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (Ex: Jewellery)

3) GST rate @12%:

a) Manufacture of umbrella

b) Printing of all goods falling under chapter 48 or 49 falling under 12%.

4) Through notification 20/2019 – Central Tax(rate) from 1st October 2019, the GST is reduced to 12% from 18% for job work other than those specifically covered above. Circular 126/45/2019-GST provides clarity on the same:

Where job work activity is not specifically covered under entry 26 (i), (ia), (ib), (ic), (id), (ii) (iia), (iii) of notification 11/2017-CT(R), i.e. not covered under serial 1 to 3 above –

  • Where the principal supplier is registered under GST – registered job worker would require to charge 12%
  • Where the principal supplier is unregistered under GST – registered job worker would require to charge 18%

i. Documents to be issued by manufacturer or Job worker

The principal has to raise triplicate challan when sending goods to job work, one challan should be retained and remaining two challan will be sent to the job worker. One copy of challan for outward movement (principal to job worker) and the other copy of challan for return (job worker to principal). Note: The challan reference would remain the same. 

Other types of Documentation:

a) One job worker to another job worker:

Goods may move under the cover of challan issued either by job worker or principal.

b) In piecemeal by job worker:

Goods returned by job worker in installments cannot be endorsed in the delivery challan issued by the principal, job worker requires to raise a fresh challan.

Delivery Challan under GST has been provided under Rule 55, contents are listed below:

> Date & number of delivery challan,

>  Name, Address & GSIN of consigner & consignee,

>  HSN code & description of goods,

>  Quantity,

>  Taxable value,

>  Tax rate & Tax amount,

>  Place of supply and

> Signature 

j) Filing of ITC-04:

When principal sends inputs or capital goods for job work, he is required to file ITC-04, it will act as a timely intimation to the department of goods sent for job work. Note, the job worker need not file ITC-04. Following are the contents of the form:

Table 4: Details of inputs or capital goods sent for job work

GSTIN / State in  case of unre gist ered job worker Ch allan no. Ch allan date Desc ri ption of goods UQC Qu antity Tax able value Type of goods (in puts/capital goods) Rate of tax (%)
C G S T S G S T I G S T C e s s
1 2 3 4 5 6 7 8 9

Table 5: Detail of inputs/capital goods received back from job worker / goods sent out to another job worker or supplied from job worker

GSTIN / State  of job wo rker if un registered Cha llan no. iss ued by the job worker ## Challan date is sued by job worker


De scr  ip tion of go ods U Q C Qu antity Original challan no. iss ued by prin cipal Original challan date iss ued by job w orker Nature of job work issued by job wo rker **Lo sses & Was tes
1 2 3 4 5 6 7 8 9 10

## In case of inputs/capital goods supplied directly from the job worker premises read as – ‘Invoice no. incase supplied from job worker premises issued by principal’. (Table 5C)

## In case of inputs/capital goods supplied sent out to another job worker – (Table 5B)

### In case of goods supplied directly from the job worker premises read as – ‘Invoice date incase supplied from job worker premises issued by principal’.

** Loss & wastes are included in the format of CGST Rules, although the same does not reflect in the GST portal. Hopefully, this anomaly is rectified at the earliest.

Path to download & file ITC-04 in GST portal:

GST Home page > Downloads > Offline Tools > ITC-04 (in excel).

GST Home page > Login > Dashboard > Returns > ITC forms > File ITC-04

Due date per quarter: 25th of subsequent month of the said quarter.


  • For the period July 2017 – March 2019 the ITC-04 filing has been waived off.
  • For April to June 2019 the due date was extended to 31st August 2019.

Note: Rule 45 read with notification 14/2018-CT & 74/2018-CT, challan may be issued for goods sent from one job worker to another by the principal or the job worker. The principal is required to update these details while filing ITC-04 under Table 4B.

Illustration on how to file ITC-04:

Mr. A (principal) is sending product ‘X’ of quantity 100kgs for processing or converting (job work) into product ‘Y’. The conversion ratio of product X to Y will be 0.5 (2X=1Y)

How Mr. A will disclose in ITC-04?

When goods to send to job worker Mr. A will disclose under table 4 with the quantity 100kgs of product X

While goods returned from job worker after completion of job work, Mr. A will disclose under table 5 of ITC-04 with the quantity of 100kgs of product X.

The above disclosure, is not uniformly being adopted across the industry. Some persons are filing the returned goods as Product ‘Y’ of 50 quantity. No Circular/Trade notices received from the department as yet.

To be able to track whether the inputs/capital goods have been received back within 1/3 years, the details of goods received may be filled in terms of the goods sent. Although, this is not mandatory but considered as best practice, Next question arises, how do we provide for this in our inventory?

In the inventory software the conversion ratio can be filled in, wherein, for the inventory it would disclose as Product Y – 50 quantity, but for the purpose of ITC 04 – it would disclose Product X – 100 quantity. 

k) E- Way bill:

In terms of Rule 138 of CGST Rules, where principal and job worker are located in the different States, E-way bill must be generated for inter-State movement without considering threshold limit of Rs. 50,000. For intra-State movement, the threshold limit of Rs. 50,000 limit (in Karnataka) or any other limit as applicable in such State would apply. In many States, there are higher limits or completely exempt.

While returning goods after completion of job work to principal’s premises, either the principal or job worker or transporter can raise E- way bill. It is to be noted that the waybill is required for “every movement” and not “every supply”.

l) FAQ’s on Job work:

Q 1. What is the turnover limit to file ITC-04?

Ans. ITC-04 to be filed by the principal. Applicable to all registered under GST, conducting job work procedure without any turnover limit.

Q 2. Whether treatment or process done for unregistered person’s goods would be considered as job work?

Ans. No, according to Section 2(68) of CGST Act, only in the case any treatment or process done for goods relating to registered person is treated as job work

Q 3. Whether Job worker need to issue delivery challan while returning the goods after job work?

Ans. No, not required to issue new delivery challan. Job worker can endorse the goods through delivery challan issued by the principal. Ensure contents are as per Rule 55.

Q 4. My job worker has high accumulated ITC balance on purchase of capital goods, rent expenses, etc. How do I, as the principal optimize tax cost here?

Ans. In such cases, cost benefit analysis could be performed to verify whether the activity could be converted into a sale and purchase transaction where he would be able to avail credit on the purchases and pass on the ITC along with margin on job work services.

Q 5. Whether goods imported for the purpose of Job work and re-exported would be liable under GST in India?

Ans. Upto 31st January 2019, as there was no specific provision to exclude such job work activity, GST was said to be liable on such transactions, and not as a zero-rated supply. This was in contrast to the erstwhile Excise and Service tax law, which provided exemption for such activity.

From 1st February 2019 onwards (based on recent IGST Amendment Act), GST not liable on such job work activity, could be covered under Export of Services (zero-rated supply). Proviso to section 13(3)(a) of IGST Act has been amended which prescribes the place of supply would not be the location where services are performed. This ensures that the place of supply would be the location of the recipient (outside India).

Q 6. We are located in Ahmedabad and we are sending goods for job work to Mumbai. After completion of job work we will export goods directly from Mumbai. Will there be any GST liability?

Ans. There would be no GST liability. Refer Circular 38/2018-CGST – Expert from the same:

Section 143 of the CGST Act provides that the principal may supply, from the place of business / premises of a job worker, inputs after completion of job work or otherwise or capital goods (other than moulds and dies, jigs and fixtures or tools) within one year or three years respectively of their being sent out, on payment of tax within India, or with or without payment of tax for exports, as the case may be. This facility is available to the principal only if he declares the job worker’s place of business / premises as his additional place of business or if the job worker is registered.

Q 7. The job worker has not sent the inputs/capital goods to the principal within the time limits prescribed? What is the impact?

Ans. The principal is liable to pay the tax on goods not returned. Note, he would be able to raise an invoice on which job worker would be eligible for credit. Although, the time of supply would be the date of sending the goods to the job worker, for which interest would require to be paid for delay in tax payments.

Practically, unless job worker makes payment against invoice to the principal, he would not be eligible for credit u/s 16 of CGST Act. Therefore, suggest job worker to make payments, claim the credit, and include the same as part of valuation for services rendered. However other implications on financial statements needs to be considered.

Q 8. Will goods sent for repairs & maintenance be considered as job work?

Ans. No, repairs & maintenance and job work are two different concepts under GST. The intention of the customer/principal, and the activity itself should define whether it is to ‘repair’ such goods, or to undertake any ‘process or treatment’ on such goods. Also, another indicator could be –

  • Repairs & maintenance – do not change the nature of the goods.
  • Job work – may result in a change of nature of the goods.

Repairs & maintenance falls under HSN code 9987, whereas job work falls under HSN code 9988, which also indicates, there is a difference between the two.

Concept behind repairs / job work services has been brought out in the West Bengal AAR M/s. Bhanuka enterprises (No. 47/WBAAR/2018-19 dated 26th Mar 2019).

Q 9. Whether Delivery challan is required if job work is done at principal manufacturer premises?

Ans. Although the activity is a job work under GST, there is no requirement of delivery challan as principal’s inputs/capital goods are not being moved. Therefore, ITC-04 also is not required. The nature of service of job worker to be clearly understood based on agreement.

Q 10. If the job worker is purchasing few raw materials, can he use such raw materials and supply the finished goods to the principal as a job work activity?

Ans. The concept of composite supply gets attracted. It is to be confirmed if the principal supply is job work services. Value of raw materials used must be included in job worker tax invoice. Although, this may require an understanding of terms of the contract and other intricacies, suggest a legal opinion if tax exposure is high.

Q 11. When goods sent to job worker and same has been lost / destroyed at job worker premises, will it be considered as deemed supply?

Ans. a. Scenario 1When goods are destroyed after receipt of goods by job worker:

In this case principal needs to treat it as a deemed supply and raise tax invoice for the same as the goods cannot be returned within time limit prescribed.

b. Scenario 2When goods destroyed before receipt of goods to job worker (goods in transit):

In this case principal need to reverse ITC according to Section 17(5)(h), as the goods are destroyed in the transit where possession of goods are not yet transferred to the job worker.

 Q 12. Who is responsible for maintain proper books of accounts in lieu of inputs and capital goods sent for job work and filing of ITC-04?

Ans. a. According to Section 143(2) of CGST Act, the responsibility of maintaining proper books of accounts lies with the principal.

b. Responsibility of filing ITC-04 also lies with the principal.

Q 13. What value is to be provided in the E-way bill while returning goods from job worker after completion of job work?

Ans. a. Considering Rule 138 of CGST Rules, 2017 read with explanation 2, EWB is required for movement of goods of consignment value more than Rs.50,000 which requires to disclose the value of goods during movement.

b. The consignment value will be transaction value determined u/s 15 of CGST Act, the transaction value includes the job work charges, therefore the consignment will be the value of goods + job work charges (including taxes).

ICAI publications on E-way bill (Feb 2019 issue) supports the above view.

Q 14. Goods received by unregistered job worker from an unregistered principal for the purpose of job work, what will be the impact under GST?

Ans. The situation would not be covered under the scope of job work under GST.

Q 15. Whether job worker has to include the amortization cost of moulds, jigs, fixtures and tools sent by the principal to the job worker in the value of job work services?

Ans. Amortization cost of moulds, jigs, fixtures and tools sent by principal to job worker shall be included in the value of job worker services only when the responsibility/ liability of procuring moulds, jigs, fixtures and tools is of job worker but supplied by principal as per section 15(2)(b) of CGST Act. (Refer Circular 47/2018)

Q 16. Whether loss and wastage generated in job worker premises be disclosed in ITC-04?

Ans. According to ITC-04 format provided in CGST Rules, principal has to disclose loss and wastage incurred in the job worker premises. Returnable delivery challan could include the job worker to include such details to help Principal maintain track & information.

Presently GST portal has been updated to include loss/wastage details.

Q 17. I am a principal manufacturer located in Karnataka only. I have unregistered job workers located in Maharashtra. My client is located in Delhi. Can I send the goods directly from job work premises(MH) to the client (DEL)?

Ans. No. As the job workers are unregistered, manufacturer must be able to add such location as ‘additional place of business’, Therefore, either the manufacturer must get registered in Maharashtra and add such location as additional place of business, or ensure the job worker is registered under GST.

Q 18. When goods sent outside the India for the purpose of job work, do we need to disclose in the ITC-04?

Ans. There is no exception for the said case. It should be disclosed in ITC-04.

Article written by CA Akshay Hiregange & Kishore B and vetted by CA Mahadev R. The author can be reached at

(Republished after updation with Amendment since last Publication)

Author Bio

Qualification: CA in Practice
Company: Hiregange & Associates
Location: Bangalore, Karnataka, India
Member Since: 01 Feb 2019 | Total Posts: 12
Qualified as Chartered Accountant in 2016. Currently, I am a Partner of Audit and Assistance in Hiregange and Associates (BLR). View Full Profile

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  1. shareef says:

    Let us know the Documents & procedure related to the supply of material directly from the supplier to Job worker premises (ie.. Material not reaching the principals godown ) .

  2. Sharan says:

    Hi sir,
    We receive raw materials for Job work with Delivery Challan(DC) and Eway bill. we make semifinished goods and send it back to our client for packaging.
    At the time of return:
    1) Do we have to raise a Delivery note of our own?
    2) On the Eway portal when we opt for the Jobwork option the Invoice no section changes automatically to delivery challan no. Do we fill in the DC no of the goods received by us here? Or do we just enter our invoice no instead.
    3) In case our Jobwork charges exceeds Rs. 50000, Do we have to fill a separate eWay bill for the same.
    4) Do we have to send back the Original Eway bill sent by our client at the time of Delivery.
    5) In the Eway bill do we put value of goods only or do we put the value of our jobwork charges or do we have to put both.
    6) Do we have to send any other Document at the time of delivery?

  3. pravin kisan waybhase says:

    Dear Sir,
    We have some doubt against Itc04 return,
    Yesterday, we have to uploaded our previous period data from April to june2020 due to lockdown, but today we have to uploded our current year data from july to sept2020 in that file some error is coming like original challan no. does not exist in your current or previous database.

    i think, if i have uploaded our previous data in on current month that’s why this error system have show to us

  4. pravin says:

    Dear Sir,

    yesterday, we have try to uploaded our Itc04 from July to Sept 2020, but that time some error is coming and i have to see the problem, problem is our last itc04 return not submitted, in that time we have to uploded our last itc04 data april to june, after that again we have uploded our currant return filed but system also showing same error.

    So you please confirm me if we have uploaded the itc04 data in portal today, how many days system accepted our file.(Error is- original challan no. .so&so…does not exist in database, current & previous

  5. sunny shetgaonkar says:

    Dear Sir,
    I have one query, if we purchase good from Maharashtra, i m from goa its interstate purchase the goods the part of good were no use for me and destroyed now i have to reverse ITC on that much part of good, please tell me can i reverse that itc as a igst or sgst and cgst?

  6. Sankarsan Tripathi says:

    I sent some electrical panel for integration to a job worker. I want two panel return back to my office premises for testing(FAT) and after testing will return the panel to job work and finally panel will be sold/dispatched to final customer from job worker premises.
    What are the provisions available in this case??

  7. Raman Singla says:

    Should Value of Goods sent for the Job Work form a part of Aggregate turnover under Deemed Export ???
    if yes
    Is it compulsory to give details in GSTR1 under Deemed export ???
    If yes
    Consequences of not disclosing in GSTR1 ???

  8. SITA RAM GUPTA says:

    sir.. i am doing some job work for a textile company. principal has send me only fabric running yardage to do quilting on that and now i have to put some foam and lining at the back of that fabric and have to do some quilting. Foam and lining will be arranged by me.After job work product will in the shape of running yardage . pls. advise can i send that material back to the principal on job work invoice.

  9. Kishor pandya says:

    I want to start only packing job of other party can I have to register under gst if so what is my tax responsibility my work is inter state one please reply


    DELIVERY CHALLAN FOR SENDING GOODS FOR JOB WORK in this delivery challan under GST act 2017 under rule 55(B) Material prize is included or not

  11. Anirban Sinha says:

    How the goods is sent from one state to another if both the principal and the job workers are unregistered?
    What is the e-waybill procedure??

  12. Nikhil says:

    Whether Delivery challan is required if job work is done at principal manufacturer premises by the labors of registered job worker has installed its machinery required for job workers at principal manufacturer premises?
    Kindly let me know the proper treatment in that case.

  13. Sanjay Jawalkar says:

    Dear Akshay
    Good artical on job work. However I have two queries
    1. Job work also include material going out on challan for repair,inspection, testing & processing. because taxable material is going out from factory if any authority verify the material then it should be recorded in job work register. Hence any material taxable material movement should capture in job work register.
    2.ITC-04 return has to filed even if there is no transaction in that particular Quarter

  14. Sanjay Jawalkar says:

    Dear Akshay
    Good artical on job work. However I have two quires.
    1.Term job work is adopted from Excise and in excise era job work include testing, processing,repair and inspection. any material taxable material movement without tax invoice will be routed through job work challan. Same is expected in GST era. If such material varify by authority then it should be recoreded in Job work register.
    2. If there is no job work transaction still taxpayer payer has to submit Nil ITC-04 return in view of Section 47 of CGST

  15. Arif Nazar says:

    In ITC-04 Table 5, How can we enter ‘multiple’ Delivery challan issued by the principal against the ‘Single’ delivery challan issued by the job worker?

  16. AkshayH says:

    For updates in GST rates, waivers of ITC-04, due dates, etc. in relation to Job work – refer article -

  17. Srinivasa says:

    Dear Sir
    Tax has to be payable along with interest by the Principal for more than one year delay in bringing back the goods from Jobworker premises – Job worker has also required to return back goods by paying tax with tax invoice if it is more than one year – WHETHER JOB WORKER IS ALSO REQUIRED TO PAY INTEREST WHEN HE RETURNED THE GOODS AFTER ONE YEAR ?

  18. ANIL KUMAR says:

    we won one of the project for Defence with one line item as a solution. We placed an order with OEM for the project with one line item. Now OEM has raised the invoice with multiple line items for the PO shared. We are not able to process the invoice as our Finance is asking for amendment of invoice as per PO. Here vendor is denying to amend the invoice and he will go as per his GST rules. Kindly suggest the way forward and we want to take GST input also on sales as an SI. Thanks

  19. Rahul Jain says:

    Very good & infomative article. I have one query:

    We are located in Ahmedabad and we are sending goods for job work to Mumbai. After completion of job work we will export goods directly from Mumbai.
    Wll there be any issue in that?
    What are things to be taken care in this scenario?

  20. Sandeep says:

    Dear Sir, Please tell me what is the GST Rate on agriculture product Job work like produce moong dall and churi from moong, moth dall and churi from moth, guar dall and korma and churi from guar

  21. Akshay Hiregange says:

    Please note notification 38/2019-CT has waived off the requirement to file ITC-04 for the period July 2017 to March 2019 with a condition:
    i) To provide details of inputs dispatched but not received back within 1 year from job worker premises; or
    ii) To provide details of inputs dispatched but not supplied from JW location within 1 year.

    This helps reduce burden on the assessees. Hope this is helpful.

  22. Rahul Agarwal says:

    In case inputs are not received within 1 year from a registered JW then principal has to issue a tax invoice and show such supplies as deemed supply in GSTR 1. As per my understanding in such cases ITC is not reversed in such cases.
    What will happen if the Job worker is unregistered and inputs have been not received within 1 year. Please also clarify whether Job worker pays the amount mentioned in Tax invoice or it is borne by the principal itself?
    Thanks in advance.

  23. PIYUSH PATEL says:

    sir i am sending my goods for further processing or for job work to my other place of business which is also included on GST portal and also within same city. so in this case do i need to consider this movement as job work and weather it need to be reported because both unit having common GST number.
    please provide guidance in this case as earliy possible.
    thank u in advance.

  24. vamsi says:

    hi sir we are sending goods to the job worker. every we have a number of challans will be generated and of that a bunch of stock will be exported then how to enter the challan no against the invoice no and date in table 5c

  25. rrkothapally says:

    Excellent article on job work procedure. Mr Akshay deserves appreciation for explaining various issues on job work duly supported by the provisions.

    However, many readers raised queries on the applicability of RCM under Section 9(4) in case of services received from unregistered job worker. Please note that Government issued Notification No.7/2019-CT(Rate) dt 29.3.2019 in exercise of new Section 9(4) of CGST Act,2017 specifying construction related goods like cement and other services procured from the unregistered supplier by the builder for the purpose of paying tax on RCM basis. Therefore all goods and services procured from unregistered suppliers other than those specified in the above notification are not covered for levy on RCM basis when procured from the unregistered supplier. Best Wishes.

  26. akash agarwal says:

    nice article sir,
    but I have a doubt in job worker is registered(because his turnover is more than 20 lakh) in one state(say in Rajasthan) and principle is registered in another state (Delhi), now job worker goes to principle person register to place(Delhi) and perform his job.
    is job worker had to mandatory to take registration in Delhi ?

  27. Nimish Suchak says:

    what is the hsn code and tax rate for JOB WORK DYEING ON READY MADE COTTON CLOTH?
    Sir please reply asap as it is very urgent.

  28. ASHOK GARG says:

    If the job worker is dealing with raw material of same specification for his own production and job work, can he mix the raw material and supply the finished goods to jobwork customer out of it . Can GST authorities can take objections to it, if observed from production records.

  29. Sudesh Kumar says:

    We (Registered person) pay to Job work charges ( un-registered person) for drafting of drawings in computers for Structure of Buildings, Airports, hospitals. Are we cover under RCM. We have not deposited GST under RCM for period 01.07.2017 to 12.10.2017. Plz suggestion

  30. Sudesh Kumar says:

    We (Registered person) pay to Job work charges ( un-registered person) for drafting of drawings in computers for Structure of Buildings, Airports, hospitals. Are we cover under RCM. We have not deposited GST under RCM for period 01.07.2017 to 12.10.2017. Plz suggestion

  31. naveen says:

    what is gst rate for job work of stitching of surgical items and making of surgical wheel chair and other patrs of surgical items.

  32. Raj Khair says:

    Principal have sent goods to Job worker who is located in other state and can job worker instead of returning to principal job worker sells in jobworker’s state itself on command of principal and what will be the tax implicability in the hands of principal and jobworker.

  33. aanchal ganeriwal says:

    sir do u have any short of ppt on jobworker with all the details and updates of gst for
    1 challan to be issued
    2 way bill to be raised
    3 piecemel transfer from one jw to another /manufacturer
    4 itc -04
    5 waste and scrap
    6 valuation of total preocess
    please do share if u have i totally believe your details would be really halpful for me to understand the whole concept clearlt thank you in advance

  34. Raghupathy says:

    Sir, Our Company Giving Jobwork to make Wallets/purse outside & inside the state. We raise Delivery challan for various Raw materials to jobworker to make a wallets. We are not filed ITC-04 as of Now. It is difficult for us to File the return as the Product sent is Different from Product Received. In our case, We send leather, Lining, fittings to make one final product Wallet. we receive full wallet from jobworker and we recheck the quality and Raise a sales invoice to Our Buyer wit Tax. Can you please Help how to file ITC04 with these kind of Transactions. ( Output 10 to 15 items- raw material ) ( input only 1 item- wallet ). How the value will match in ITC-04. We are putting Nominal Value. Please Explain

  35. ANTONY K.V. says:


  36. prakash chand jain says:

    This is an excellant presentation and i am thankful to the authors of this article.
    In case i need any clarification is it possible to contact by mail.

  37. RAJENDAR says:

    clearly explained, all my doubts are cleared with regard to job work. pls. send link or mail alert if new article published by you.

  38. CA ROSHAN RANA says:

    Excellent Sir
    Is there registered job worker send goods to further job work on his own account, then the job worker liable to file ITC-04?

  39. Vinayaka says:

    Good Article by each and every aspects of job work. one query is there, If principal manufacturer (incase of Jewellers) given jobwork to goldsmith. then he has to pay RCM charges and need to be declared in GSTR-04 by principal Jewellers. Let Me clarify

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August 2021