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