Treatment or processes include packing labelling testing re-conditioning re-packing inspection etc.

Example of job work under gst. The person who is treating or processing the goods belonging to other person is called job. In such a case the job. The term inputs for the purpose of job work includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or job.

If he is not registered the same would be supplied by the principal on payment of tax. As per GST Law in India if the goods of principal directly supplied from the job-workers premises the amount of such supply will be included in. Section 2 68 Definition of Job Work job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly.

For example big shoe manufacturers principal send out the half-made shoes upper part to smaller manufacturers job worker to fit in the soles. In that case you might send the front panels to artisans for hand-beading before stuffing the pillows in house. For example big shoe manufacturers principal send out the half-made shoes upper part to smaller manufacturers job worker to fit.

It includes outsourced activities that may or may not culminate into manufacture. It is also pertinent to add here that the provisions relating to job work are applicable only when registered taxable person intends to send taxable goods for job work to the job worker. Job work happens when you outsource part of your production.

In the above example the aggregate turnover of such transaction under job work is included in principals account here in As account. Now let us take an example for the application of GST E-way bill for job work in our everyday life. Therefore job-worker is the person registered or unregistered who is processing or treating the goods of another registered person and the owner of the goods is called the Principal in this respect.

The person doing the job work is called job worker. This hand-beading which is done in a different location by someone other than. The term Job-work itself explains the meaning.