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.




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saundaria: I'm looking to start a clothing business in the US, with job work being done in India. I've been reading through the amazing website you've created and learning a lot. My situation is slightly unique and I was wondering if you could help point me in the right direction. I would highly appreciate your assistance. I'd like to send about 50kgs of used, vintage garments from the US to India for job work (embroidery, block print, etc). Once the job work is done, we want to export it out of India, back to the US as samples. Some questions: 1) Is the HS code different for used garments? (Or same as described in Chapter 62) 2) Do you know the process of getting the import duty back, as we'll be exporting the same garments out of India? 3) Does the assessed value need to be different from the invoice value?

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