Gst on job worker

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ATUL ANAND

ATUL ANAND (Querist)
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27 May 2017 job work is carried out by job worker, whether GST charged by job worker at the time of returning of goods

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 May 2017 GST law allows principal to send taxable goods, without payment of tax, to a job worker. There can be further movement of such goods from one job worker to another. However such goods must be brought back to principal’s place of business and must be removed after payment of tax thereon.

In simple words, a principal can remove goods without payment of tax, provided such goods are sent for job work and intended to bring back for a taxable supply. Such removal of goods is allowed only on declaration basis.