2. WHAT IS JOB WORK?
SECTION 2(68) OF CGST
ACT:
JOB WORK MEANS ANY
TREATMENT OR PROCESS
BY A PERSON ON GOODS
BELONGING TO ANOTHER
REGISTERED PERSON AND
THE EXPRESSION ‘JOB
WORKER’ SHALL BE
CONSTRUED ACCORDINGLY.
3. PRESTIGE ENGG INDIA LTD [1994 (73) ELT 467 SC]
Hon’ble SUPREME COURT:“We must
hasten to add that addition or
application of minor items by the
job-worker would not detract from
the nature and character of his work.
For example, a tailor entrusted with
a cloth piece and asked to stitch a
shirt, a pant or a suit piece may add
his own thread, buttons and lining
cloth. Similarly, a factory may be
supplied the shoe uppers, soles etc.
by the customer and the factory
applies its own thread or bonding
material and manufactures shoes
therefrom and supplies them back to
the customer, charging only for its
work. The nature of its work does
not cease to be job-work.”
4. SECTION 19 OF CGST ACT
THE PRINCIPAL SHALL,
SUBJECT TO SUCH
CONDITIONS AND
RESTRICTIONS AS MAY
BE PRESCRIBED, BE
ALLOWED INPUT TAX
CREDIT ON INPUTS
SENT TO A JOB-
WORKER FOR JOB-
WORK.
5. DELIVERY OF INPUTS
PRINCIPAL SHALL TAKE
CREDIT ON INPUTS /
CAPITAL GOODS EVEN
IF THEY ARE SENT
DIRECTLY TO JOB
WORKER WITHOUT
BEING BROUGHT TO
THE PREMISES OF THE
PRINCIPAL.
6. SECTION 143 OF CGST ACT
REGISTERED PERSON
CAN SEND ANY
INPUTS OR CAPITAL
GOODS (on which he
has taken ITC) TO A
JOB WORKER,
WITHOUT PAYMENT
OF TAX .
7. INPUT INCLUDES…
For the purposes of job
work, input includes
intermediate goods
arising from any
treatment or process
carried out on the
inputs by the principal
or the job worker.
8. ON COMPLETION OF JOB WORK OR
OTHERWISE…
SUCH REGISTERED
PERSON CAN
BRING BACK THE
INPUTS WITHOUT
PAYMENT OF TAX,
WITHIN ONE
YEAR.
9. ON COMPLETION OF JOB WORK OR
OTHERWISE …
SUCH REGISTERED
PERSON CAN BRING
BACK THE CAPITAL
GOODS (other than
moulds, dies, jigs &
fixtures, tools)
WITHOUT PAYMENT
OF TAX, WITHIN 3
YEARS.
10. NO TIME LIMIT….
IN RESPECT OF
MOULDS & DIES, JIGS
& FIXTURES, AND
TOOLS, THERE IS NO
TIME LIMIT FOR THE
REGISTERED PERSON
TO GET THEM BACK
FROM THE JOB
WORKER.
11. FROM ONE JOBWORKER TO ANOTHER
INPUTS AND CAPITAL
GOODS SENT TO ONE
JOBWORKER CAN BE
SENT TO ANOTHER
JOBWORKER DIRECTLY,
WITHOUT BEING
BROUGHT BACK TO THE
PREMISES OF THE
REGISTERED PERSON.
12. SUPPLY FROM JW’S PREMISES…
AFTER COMPLETION
OF JOB WORK, GOODS
CAN BE REMOVED
FROM THE
JOBWORKER’S
PREMISES DIRECTLY,
WITHIN INDIA, ON
PAYMENT OF TAX … OR
EXPORTED WITHOUT
PAYMENT OF TAX.
CONDITION:
• PRINCIPAL SHOULD
DECLARE THE PLACE OF JOB
WORKER AS HIS
ADDITIONAL PLACE OF
BUSINESS (OR)
• JOB WORKER SHOULD BE A
REGISTERED PERSON (OR)
• PRINCIPAL IS ENGAGED IN
SUPPLY OF SUCH GOODS AS
MAY BE NOTIFIED BY
COMMISSIONER.
14. IF TIME LIMIT IS NOT ADHERED TO…
IF INPUTS ARE NOT
RECEIVED BACK WITHIN
ONE YEAR AFTER
JOBWORK, IT SHALL BE
DEEMED THAT SUCH
INPUTS WERE SUPPLIED
BY THE PRINCIPAL TO THE
JOB WORKER ON THE DAY
WHEN THE SAID INPUTS
WERE SENT OUT.
15. CAPITAL GOODS NOT RETURNED…
IF CAPITAL GOODS (except
moulds & dies, jigs &
fixtures and tools) ARE NOT
RETURNED WITHIN THREE
YEARS TO THE PRINCIPAL, IT
SHALL BE DEEMED THAT
SUCH CAPITAL GOODS
WERE SUPPLIED BY THE
PRINCIPAL TO THE JOB
WORKER ON THE DAY
WHEN THEY WERE SENT
OUT.
16. WASTE & SCRAP
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
17. RATE OF TAX FOR JOB WORK
(i) Services by way of job work in relation to-
(a) Printing of newspapers;
(b) Textile yarns (other than of man-made fibres)
and textile fabrics;
(c) Cut and polished diamonds; precious and semi-
precious stones; or plain and studded jewellery
of gold and other precious metals, falling under
Chapter 71 in the First Schedule to the Customs
Tariff Act, 1975 (51of 1975);
(d) Printing of books (including Braille books),
journals and periodicals;
(e) Processing of hides, skins and leather falling
under Chapter 41 in the First Schedule to the
Customs Tariff Act, 1975 (51of 1975).
5% ON
JOB
CHARGES
WITH
FULL ITC.
19. EXEMPTION FROM TAX
Carrying out an
intermediate production
process as job work in
relation to 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 or agricultural
produce.