2. EGISTRATION U/S 25
Principal
Manufacturer
has not
declared Job
worker’s place
as the
additional
place of
business.
Principal
Manufacturer
has declared
Job Worker’s
place as the
additional
place of
business.
Job worker is
required to get
registered
Job worker is
not required
to get
registered
Job worker shall
mandatorily get
registered if
Aggregate
turnover>20 Lakh
3. IS COMPOSITION SCHEME AVAILABLE TO
JOB WORKER?
Composition scheme is NOT
available to job-workers.
4. RESPONSIBILITY OF PRINCIPAL
MANUFACTURER AFTER
REGISTRATION?
‘Principal
Manufacturer’
Shall submit to Jurisdictional Officer:
i) Details of goods that are sent to the Job
Worker
ii) Details of services provided by the Job
Worker
Shall send goods (including the
intermediate goods) to Job worker along
with the delivery challan (as per the
specified format) without payment of tax.
5. MOVEMENT OF GOODS AND ITS TAX
IMPLICATION U/S 143(1)-
GOODS GOODS GOODS
Principal
Manufacturer
Job worker 1
(registered or
Job worker
2
No GST No GST
Custo
mer
GST
GOODS
GST
6. MOVEMENT OF SERVICES AND ITS TAX
IMPLICATION-
Principal
Manufacturer
(registered)
Job worker 1
(registered)
Job worker
2
(unregistere
d)
GOODS
Tax Invoice at TOS
of
services(valuation
as per section 15)
Invoice for supply
of services
Invoice for supply of
services
JW 1 is liable
under RCM
PM is liable under RCM
JW 1 is liable
7. IS THERE A TIME PERIOD WITHIN WHICH
PROCESSED GOODS SHOULD BE
RETURNED BY JOB WORKER?
‘Return within 1 year’ ‘Return within 3 years’
No
condition to
return these
u/s 19(7).Moulds, dies,
jigs, fixtures,
tools
Principal Manufacturer is responsible to bring back the goods supplied
to job worker.
8. If goods are not sent by job worker after the expiry of
specified tax period
PM is liable to pay tax with interest and he shall disclose the invoice
issued in this regard in GSTR 1
If goods are sent by the job worker after the expiry of
specified tax period
Where JW is registered: JW is liable to pay tax
Where JW is unregistered: PM is liable under RCM
Job
Worker
Principal
Manufacturer
Job Principal
Section 143, sub section 3
and 4 read with section 19(3)
& 19(6)
9. WHAT HAPPENS WHEN MOULD, DIES,
FIXTURES, JIGS ARE DISPOSED OFF AS
SCRAP OR WHEN WASTE GENERATED IS
DISPOSED OFF?
When Job Worker is
registered
Scrap/waste is disposed off
by Job Worker
GST shall be payable by Job
Worker
When Job worker is not
registered
Scrap/waste is disposed off
by Principal Manufacturer
GST shall be payable by
Principal Manufacturer.
Section
143(5):
10. INVOICING BY JOB WORKER
WHEN GOODS ARE SENT IN SMALL
QUATITY: Job worker cannot endorse the
challan received from PM, rather he shall
issue a fresh challan.
WHEN GOODS ARE SENT ALTOGETHER:
Job worker shall give copy of challan
(received from principal manufacturer).
Job Principal
11. CAN PRINCIPAL MANUFACTURER
SELL FINISHED GOODS DIRECTLY
FROM JOB WORKER’S PLACE?
YES
When job worker is not
registered
And Principal has shown
JW’s place as additional
place of business
NO
When job worker
is registered
Or in case of
notified goods.
Proviso to
Section
143(1)
12. E-WAY BILLRULE 138 OF CGST RULES
E-way bill shall be
generated by every
registered person
(principal manufacturer
or job worker) who
causes movement of
goods if the
consignment value
exceeds Rs.50,000.
But in case of interstate
supply, e-way bill shall be
generated by Principal
Manufacturer or
Registered Job Worker
irrespective of
consignment value.
E-way bill shall
be accompanied
by ‘Delivery
Challan’
13. WHO SHALL AVAIL INPUT TAX
CREDIT?
As per section 19,
‘Principal Manufacture’
When goods are sent by Principal
Manufacturer to Job worker.
When goods are sent directly by supplier
of goods to Job Worker.
14. RETURN (FORM ITC 04)
ITC-04 is
submitted by the
principal
manufacturer in
every Quarter
Due date of filing ITC-04
is 25th of the succeeding
month.
Details of challan
must be filed
through ITC-04
15. GST RATES ON JOB WORK
Job Work on GST Rate
Agriculture, forestry, fishing, animal husbandry 0%
Intermediary services related to cultivation and
animal rearing
0%
a) Printing of newspapers
(b) Textile and textile products
(c) Jewellery
(d) Printing of books (including Braille books),
journals and periodicals
(e) Processing of hides, skins and leather
5%
