Raj Jaggi
Quick Summary
The Job Work Framework under GST - A Legislative Overview Within the expansive GST framework, certain provisions are designed not merely to levy tax but to facilitate genuine business movement. Section 143 of the CGST Act, 2017, is one such carefully crafted provision. It recognises a core commerci
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FAQ :
The main purpose of Section 143 is to facilitate genuine business movement by allowing principals to send inputs or capital goods for job work without immediate tax incidence, while embedding timelines and accountability safeguards.
Inputs must generally be returned within one year of dispatch, and capital goods (excluding certain tools) within three years. These timelines can be extended by the Commissioner in specific circumstances.
Yes, Section 143(1)(b) allows principals to supply processed goods directly from the job worker's location, either for domestic supply or export, provided statutory timelines are met.
The principal is legally responsible for maintaining accurate records of inputs and capital goods sent for job work, even if they are physically handled by the job worker.
If inputs are not returned or supplied from the job worker's premises within one year of dispatch, they are deemed to have been supplied by the principal to the job worker on the original dispatch date, attracting GST and interest.
Waste and scrap can be supplied directly from the job worker's premises on payment of tax if the job worker is registered. If the job worker is unregistered, the principal is responsible for the tax.
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