ICAI has recently released E-Handbook on Job work under GST-June, 2018
To facilitate India to be a manufacturing hub by providing simplified procedures of job work exhibits the endeavour of Government conduit to accomplish the “Make in India” concept. The clarifications provided on certain pivot issues pertaining to job work will not only provide transparent tax structure but also permeates the adherence of compliances in the desired manner.
ICAI for smooth implementation of GST has always been supporting the Nation with its intellectual resources, expertise and efforts. Being a partner in GST Knowledge Dissemination, the Indirect Taxes Committee of ICAI through its various publications on GST, Certificate Course (Virtual and face to face), Workshop, Seminars, Standardized PPTs, e-learning, webcast, and suggestions provided at the nascent and every stage law etc. has always endeavoured to a part of this major transformational reform for the benefit of all stakeholders and society.
One more step towards this initiative taken by Indirect Taxes Committee of ICAI is revision of E-Handbook on “Job-work under GST”. This handbook provides the provisions relating to job work under one umbrella to enable job workers, manufacturers and consultants to do their SWOT analysis and materialize the benefits of GST as envisaged. In-sight to job work activities through apposite legal provisions, explanations, jurisprudence and flow charts will facilitate better understanding of GST Law.
Smooth implementation of GST urge for clarifying certain issues for transparent and tax compliant structure in India. Realising the need of hour, the Government has unveiled the intention of ease and pervasive adherence of GST by clarifying on ambiguities pertaining to job work. Clarity on transaction, some of which are use of own goods by job worker, registration of job worker, document for movement of goods to and from job worker, value of job work services, direct supply of goods from job worker premises etc. have been provided lately.
Considering the on-going developments to simplify the GST law and to drive the growth of job work activities, ICAI has come up with the revised E-Handbook on “Job-work under GST”. This handbook is designed to provide an in depth knowledge about detailed and thorough study of the procedure, conditions and restriction for supplying goods to job worker, provisions relating to removal of inputs / semi-finished goods/capital goods by principal to a job worker, duration within which goods to be returned by job worker, and disposal of waste & scrap generated during job work, input tax credits/ on inputs/capital goods procured, place of supply, invoice, delivery challan, generation of e-way bill in case of inter-state supply etc. including the aspects clarified by Circular No. 38/12/2018 dated March 26, 2018 with respect to job work transactions. It is the pertinent to mention that this circular specifically mentions that the principal is not obligated to follow the job work provisions and it is his choice whether or not to avail the benefit of this special provision.