GST under movement of Goods from a Job worker to customer in India

GST under movement of Goods from a Job worker to customer in India

GST under movement of Goods from a Job worker to customer in IndiaWe supply goods for Job work. After completion of Job work, can we sell such goods directly from job work place to our customer under GST Law. How to account GST if the final product of sale moves from Job worker’s place to our buyer directly? The amount of such job work is included by Principal supplier or Job worker for calculation of Aggregate Turnover.

Let us clarify GST mechanism as per GST Law in India about Job work and GST payment with a simple and easy understanding:

B undertake job work from A. A sells final product to C. Instead of bringing back those goods to A’s premises, he moves the goods directly to C’s premise.

In the example given, how to account Aggregate Turnover under GST Law in India?

In the above example, the aggregate turnover of such transaction under job work is included in principal’s account, here in A’s account. As per GST Law in India, if the goods of principal directly supplied from the job-worker’s premises, the amount of such supply will be included in the aggregate turnover of the principal.

Can ‘A’ supply goods directly from B’s premise to C’s required place without bringing the goods back to A’s own premise?

A can move goods directly to C from B’s premise with a condition that A should have declared the premises of such Job worker as his additional place of business or where B is a registered person or where the goods have been notified.

As per GST Law, principal has to declare the premises of such job-worker as his additional place of business or where the job-worker is a registered person or where the goods have been notified.

Circumstances where A can directly supply goods from B’s premise to C’s premise

The goods can be supplied directly from B’s premise without declaring it as additional place of business in two circumstance: 1) B is a registered taxable person 2) A is engaged in supply of such goods as may be notified in this behalf.

As per GST Law of India, the goods can be supplied directly from the place of business of job-worker without declaring it as additional place of business in two circumstances namely where the job-worker is a registered taxable person or where the principal is engaged in supply of such goods as may be notified in this behalf.

The above information is about GST Tax liability under Job work and movement of goods under Job work. The details also explain the treatment of aggregate turnover of principal and Job worker, registration requirements of job worker, principal supplier etc. You may share your thoughts about this post, ‘Accounting GST under movement of Goods from a Job worker directly to customer in India’

 

Relation Information links:

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

Contents of GST Tax invoice 

Endorsement in GST Tax Invoice under Exports 

Maximum allowed time to issue Tax Invoice after supply of Goods or/and Services 

Manner of Issuing GST Invoice

 How to obtain Invoice Reference Number of GST? 

Debit Invoice (Debit Note) to original Invoice under GST Invoice 

Can a GST Invoice be changed after issuing? 

How to issue Credit Invoice under GST in India? 

Contents of GST Tax Invoice of ISD 

GST Tax invoice of Banks and financial institutions 

GST Tax Invoice of Transport Company 

GST Invoice of Passenger Transporter

Advantages of GST registration in India 
Who has to obtain GST registration in India?      
Does GST registration number of my firm change time to time in India? 
Is GST registration required for a public sector undertaking? 
Is amendment of GST registration allowed in India? 
Cancellation of GST registration in India 
Centralized GST registration of services permitted in India? 
Retired from business ownership. Fresh GST registration in India? 
GST Registration for Job workers in India 
GST registration mechanism in India 
Pre-registration of credit card necessary for GST payment in India 
Is GST Registration required for a Job worker in India?

How to get exemption of Sales Tax under exports.

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

How to get export order from foreign buyers?

How to get RCMC from Export Promotion Councils

How to hide invoice value of original contract under high sea sale transactions

How to know the quality, quantity or contents of goods before import customs clearance

How to know volume of LCL cargo if not measured at factory

Transferability of Bill of Lading



Comments


anil shah: i am purchasing goods from A , can i directly deliver the good to my buyers B to his place from my supplier A

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers