As per the GST Act job work under GST means any treatment or process undertaken by a person on goods belonging to another registered person.

Example of job work under gst. 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. In the case of job work on the Textile along with the textile products and job work on newspaper printing the GST rate is 5. Recent Circular issued by CBEC - Clarification made on issues related to Job Work with various Procedure and Compliances Vide Circular No - 38122018 dated.

If he is not registered the same would be supplied by the principal on payment of tax. 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.

For example big shoe manufacturers principal send out the half-made shoes upper part to smaller manufacturers job worker to fit. Return of Goods to Principal. Now let us take an example for the application of GST E-way bill for job work in our everyday life.

It is processing of goods supplied by the principal. The GST law defines job work as any treatment or process undertaken by a person on goods belonging to another registered person Say you make decorative pillows. When goods are sent by Principal to Job Worker for the purpose of job work or return of goods from job worker to principal.

The person doing the job work is called job worker. In other words these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered taxable person. For instance Q of Aurangabad send goods for job work to P Jaipur of and the value of consignment is Rupees 20000 therefore an e-way bill is generated by Q as the cities are situated in two different states.

The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business on payment of tax if he is registered. Section 143 requires from the Principal to intimate each supply made to Job Worker supply made to another Job Worker and goods returned by Job Worker. In such a case the job.