Job work means any treatment or process undertaken by a person on goods belonging to another registered person. So registered person need to send inputs/capital goods to job worker to do job work. To send these inputs/capital goods without payment of tax only on challan basis – Job Work provision under #GST comes into force.
Conditions to be fulfilled by principal to take benefits:
1. Need to maintain records as per section 143 & rule 45
2. Furnish the required details on quarterly basis in ITC-04
3. Take back the inputs/capital goods within undermentioned time limit:
Consequences to be kept in mind if inputs/capital goods are not “received back/supplied/exported from job worker’s place” within prescribed time limit
1. Such Inputs/capital goods would be deemed to be supply and liable to tax from the under mentioned date:
2. Supply need to be mentioned accordingly in the GSTR1
3. Need to pay the tax and interest on tax from date of deemed supply to the date of actual payment.
Some special points
About the Author
Author is Modhu Khyalia, Partner with S C Bhagat & Co. a leading chartered accountancy firm rendering comprehensive professional services with its office in Karol Bagh. Modhu Khyalia, with an experience of more than 5 years who is an expert in providing tax and statutory compliance services & advisory services related to GST, Income Tax, TDS, Corporate Tax, Foreign Taxation, PF, ESI, helping start-ups in incorporation formalities, FDI, Implementation of ERP and designing various types of management reports for better decision making.