gst on garment job work

Principal may send the goods to Job work without payment of GST provided such goods are returned back to principal within 1 year from the date of its dispatch.

If the job worker fails to return the goods within above specified time period, then Initial supply made to job worker by principal would become chargeable to GST from the original date of dispatch of goods for JW. Principal is liable to pay GST along with interest. The Delivery challan issued earlier will be treated as invoice and Tax will be charged as per the value shown in the delivery challan on the date of dispatch of inputs/CG to JW.