Whether products sent by a taxable person to a job worker be treated as supply and will they be liable to GST?

Whether products sent by a taxable person to a job worker be treated as supply and will they be liable to GST?

No, the products sent by a taxable person to a job worker is not a supply, as there is no transfer of title and no consideration for the products is involved. In terms of section 143 of the CGST Act, 2017 a registered taxable person (the principal), after following the prescribed procedure, may send any inputs or capital goods, without payment of GST, to a job worker for job work and the principal shall either (i) bring back such inputs or capital goods after completion of job work or otherwise within the prescribed period i.e. 1 year in case of inputs and 3years in case of capital goods, or (ii) supply such inputs or capital goods, within such prescribed period, on payment of tax within India, or with or without payment of tax for export, as the case may be.

If the goods or, capital goods, as the case may be, are not returned to the principal within the time specified above, the same shall be deemed to have been supplied by the principal to the job worker on the date the goods were sent out to the job worker and the principal shall be required to pay tax accordingly on such supplies.

 

 

 

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

Export procedure changes after GST implementation

Factory stuffing procedures after GST implementation

Import of goods attracts IGST but not CVD under GST regime

Import goods attracts IGST and CVD under GST regime

Import Goods attract IGST, CVD and Compensation Cess under GST regime

Safeguard duty and Anti-dumping duty after GST implementation

Section 1 of UTGST Act 2017       

Section 172 of CGST Act, 2017 Removal of difficulties

Section 170 Rounding off of tax, CGST Act, 2017

Sec 168 of CGST Act, 2017 Power to issue instructions or directions

Liability in case of amalgamation or merger of Companies under CGST Means

Term Levy and Collection of Tax Under IGST

Meaning of term Letter of Undertaking(LUT) under GST

Meaning of Laws governing Goods and Services Tax

Kashmir State Goods Service Act Means

What is Job work procedure under GST

Meaning of ITC Ledger of Tax Payer under GST

Register with Export Promotion Council

How to Choose a product for export business

Excise and Customs - Click here to read complete notification under Budget 2014

How to get Export Orders?

How to settle dispute in Exports and Imports?

Click here to know India Trade Classification(ITC)

Pre shipment bank finance to suppliers for exports through other agencies

Types of export containers

Measurement of export containers

Export Import Policy of India 2015-2020

Documents required for Export from Paraguay

Customs procedures for Paraguay Export

Registration required to export from Paraguay

Documents needed for Paraguay import

Import Customs processes in Paraguay

Import Registration and import Licence procedures in Paraguay

How to export from Papua New Guinea?

 


Discussion Forum

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