Meaning

Job Work:- it means under taking of process or further process on goods relating to another registered person.
Job Worker:- the person undertaking the work of processing or further processing of goods belonging to another registered person.

Input tax credit on goods sent to job worker

The principal manufacturer, who send goods to job worker, shall be eligible to take credit of input tax paid on such goods.

Mode of sending of goods to Job worker
• Sending of input by principal manufacturer from his place of business to the place of job worker.
• Delivery of Input directly at the place of business of job worker without first receipt at his place of business

Time limit for receiving back of processed input or capital goods

Input
Input send to job worker shall be received back within 1 year from
Note :- in case goods directly send at the place of Job worker the period of 1 year shall be counted from the day of receipt of goods at job worker place

Capital goods
Capital goods send to job worker for further processing shall be received back by principal manufacturer within 3 year
Note :- in case goods directly send at the place of Job worker the period of 3 year shall be counted from the day of receipt of goods at job worker place

Consequences if goods are not received back from job worker
When the principal manufacturer no received back goods (Input or Capital goods ) within stipulated period then is shall be deemed that input or capital goods had been supplied to job worker and date of supplies shall be the date when input or capital goods were send.
Note:- In case of goods directly send at the place of job worker without first received at his place then date of supplies shall be date of receipt of goods at the place of job worker

Transitional provision

Input

When input send to job worker for further processing, testing reconditioning under existing prior to 1/07/2017 and received back after 01/07/2017 then
no tax payable if goods received within 6 month from 01/07/2017 and in case goods not received back within 6 month then input tax credit taken on such goods shall be payable by principal in accordance with the section 142 (8)
Note:- the period of this 6 month may be further extended by commissioner not exceeding by 2 month on producing with sufficient cause

Semi-finished

When Semi- finished send to job worker for carrying out further processing as per existing law under existing prior to 1/07/2017 and received back after 01/07/2017 then
no tax payable if goods received within 6 month from 01/07/2017 and in case goods not received back within 6 month then input tax credit taken on such goods shall be payable by principal in accordance with the section 142 (8)
Note:- the period of this 6 month may be further extended by commissioner not exceeding by 2 month on producing with sufficient cause

Any Excisable Goods

When Any excisable goods removed without payment of duty for testing or other process which I not amounting to manufacture under existing prior to 1/07/2017 and received back after 01/07/2017 then
no tax payable if goods received within 6 month from 01/07/2017 and in case goods not received back within 6 month then input tax credit taken on such goods shall be payable by principal in accordance with the section 142 (8)
Note:- the period of this 6 month may be further extended by commissioner not exceeding by 2 month on producing with sufficient cause

Note:- In all above 3 circumstances no tax payable if principal manufacturers and job worker declared such goods held as stock on behalf of principal manufacture after 01-07-2017 and within prescribed time in prescribed manner

Job work procedure sec 143 of CGST
Any registered person may send input or capital goods moulds and dies, jigs and fixtures, or tools for further processing, without payment of tax, to job worker
Input or capital goods other than moulds and dies, jigs and fixtures, or tools send to job worker shall bring back within 1 year in case of input and 3 year in case of capital goods.
The registered person may supply such goods within 1 year in case of input and within 3 year in case of capital goods directly from the place of job-worker on payment of tax only when principal person has declared job worker place as his additional place of business. Although if job worker is registered person then principal person need no to declare job worker place as his additional place of business.
The registered person shall maintain and keep the record of input and capital goods send to job worker

In case where input are not received back or not supplied from the place of job worker, after finishing of processing and within 1 year, then after completion of 1 year it shall be deemed that such input had been supplied to job worker on the day when input was sent out to job worker.
In case where Capital Goods are not received back or not supplied from the place of job worker, after finishing of processing and within 1 year, then after completion of 1 year it shall be deemed that such Capital Goods had been supplied to job worker on the day when input was sent out to job worker.

Any scrap or waste arise during the processing of input or capital goods then such wastage or scrap may be supplied by job worker on payment of tax if registered and in case not registered then principal person shall pay tax on such supplies.