MATERIAL FOR SENT FOR JOB WORK
This query is : Resolved
Quick Summary
05 September 2025
I am engaged as a job worker under the GST provisions, performing processes on materials supplied by a registered principal. I kindly request clarification on the correct GST compliance procedures applicable to this arrangement from the view of principle and job Worker point of view
Dhirajlal Rambhia
(Expert)
06 September 2025
1. https://rmpsco.com/job-work-under-gst-compliance-documentation-input-tax-credit/
2. https://hnallp.com/assets/articles/b40f6-job-work-procedure-under-gst.pdf
3. https://www.taxtmi.com/article/detailed?id=14802
4. https://www.taxtmi.com/article/detailed?id=7942
2. https://hnallp.com/assets/articles/b40f6-job-work-procedure-under-gst.pdf
3. https://www.taxtmi.com/article/detailed?id=14802
4. https://www.taxtmi.com/article/detailed?id=7942
Dhirajlal Rambhia
(Expert)
06 September 2025
Key Compliance Points
Movement of goods to and from job worker is tracked via delivery challans and (where required) e-way bills—never an invoice for initial movement.
Job work is treated as a supply of service under GST; the job worker collects GST on job work fees.
ITC on inputs and services used for job work is generally available to both principal and job worker, subject to GST provisions.
Non-compliance (such as missing documentation or delays in returning goods) results in penalties, denial of ITC, and GST liability becoming due with interest.
Movement of goods to and from job worker is tracked via delivery challans and (where required) e-way bills—never an invoice for initial movement.
Job work is treated as a supply of service under GST; the job worker collects GST on job work fees.
ITC on inputs and services used for job work is generally available to both principal and job worker, subject to GST provisions.
Non-compliance (such as missing documentation or delays in returning goods) results in penalties, denial of ITC, and GST liability becoming due with interest.
Dhirajlal Rambhia
(Expert)
06 September 2025
Summary Table
Aspect Principal Job Worker
GST Registration Mandatory Mandatory if above threshold
Document for goods sent Delivery Challan, E-way Bill N/A
Tax on job work N/A GST (Usually 18%)
GST Returns File ITC-04, regular returns File GSTR-1, GSTR-3B, etc.
ITC Benefit Available if goods returned timely Available on own inputs/services
Time Limits 1 yr (Inputs), 3 yrs (Capital Goods) N/A
Aspect Principal Job Worker
GST Registration Mandatory Mandatory if above threshold
Document for goods sent Delivery Challan, E-way Bill N/A
Tax on job work N/A GST (Usually 18%)
GST Returns File ITC-04, regular returns File GSTR-1, GSTR-3B, etc.
ITC Benefit Available if goods returned timely Available on own inputs/services
Time Limits 1 yr (Inputs), 3 yrs (Capital Goods) N/A
Dhirajlal Rambhia
(Expert)
06 September 2025
Principal's GST Compliance
The principal must be registered under GST to avail of job work benefits.
Goods sent to a job worker are accompanied by a delivery challan (Rule 45 of CGST Rules), not a tax invoice—this is NOT considered a supply, so no GST is charged at this stage.
If the value of goods moved exceeds ₹50,000, an e-way bill is required.
The principal can claim Input Tax Credit (ITC) for goods sent for job work, as long as the goods are received back within stipulated time limits (1 year for inputs; 3 years for capital goods).
If goods are not returned within the time limit, it is deemed as a supply and GST (with interest) becomes payable by the principal.
The principal must file Form ITC-04 quarterly or half-yearly, detailing the goods sent to and received from the job worker.
Maintain records for goods sent for job work and those returned or supplied from the job worker’s premises.
The principal must be registered under GST to avail of job work benefits.
Goods sent to a job worker are accompanied by a delivery challan (Rule 45 of CGST Rules), not a tax invoice—this is NOT considered a supply, so no GST is charged at this stage.
If the value of goods moved exceeds ₹50,000, an e-way bill is required.
The principal can claim Input Tax Credit (ITC) for goods sent for job work, as long as the goods are received back within stipulated time limits (1 year for inputs; 3 years for capital goods).
If goods are not returned within the time limit, it is deemed as a supply and GST (with interest) becomes payable by the principal.
The principal must file Form ITC-04 quarterly or half-yearly, detailing the goods sent to and received from the job worker.
Maintain records for goods sent for job work and those returned or supplied from the job worker’s premises.
Dhirajlal Rambhia
(Expert)
06 September 2025
Job Worker's GST Compliance
GST registration is required if the job worker's aggregate turnover exceeds prescribed limits; otherwise, the principal may declare the job worker’s premises as an additional place of business.
The job worker must issue an invoice for job work charges—the processing of goods is considered a service and attracts GST (generally 18%, but lower for certain sectors like textiles).
The job worker needs to file GST returns (such as GSTR-1, GSTR-3B, etc.) if registered.
Proper stock and job work process records must be maintained by the job worker.
GST registration is required if the job worker's aggregate turnover exceeds prescribed limits; otherwise, the principal may declare the job worker’s premises as an additional place of business.
The job worker must issue an invoice for job work charges—the processing of goods is considered a service and attracts GST (generally 18%, but lower for certain sectors like textiles).
The job worker needs to file GST returns (such as GSTR-1, GSTR-3B, etc.) if registered.
Proper stock and job work process records must be maintained by the job worker.
Dhirajlal Rambhia
(Expert)
20 September 2025
Good Luck..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- Import of Software Service.
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- GST on Renting godown to KFCSC for Storage of Raagi
- GST Audit whether Govt Companies are exempt?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
