Ans. Section 2(62) of the MGL provides that “job-work” means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job-worker” shall be construed accordingly.
This definition is much wider than the one given in Notification No. 214/86 – CE dated 23rd March, 1986 as amended, wherein job-work has been defined in such a manner so as to ensure that the activity of job-work must amount to manufacture. Thus the definition of jobwork itself reflects the change in basic scheme of taxation relating to job-work in the proposed GST regime.
Ans. No. It will not be treated as a supply. In terms of
proviso to Para 5 of Schedule I of the MGL the supply of
goods by a registered taxable person (principal) to jobworker,
in terms of Section 43A, shall not be regarded as
supply of goods. Therefore, it can be inferred that no GST
shall be applicable on the goods supplied by the registered
principal to a job-worker.
Yes. Section 43A of the MGL provides that the
registered taxable person (principal) can send the taxable
goods to a job-worker for job-work without payment of
tax. He can further send the goods from one job-worker to
another job-worker and so on subject to certain condition.
It may be noted that provisions of Section 43A are not
applicable if non-taxable or exempted goods are proposed
to be sent for job-work.
Ans. Yes, as a Job-worker would be a supplier of services,
he would be required to obtain registration if his aggregate
turnover exceeds the prescribed threshold
Ans. No. It will be included in the aggregate turnover of
Ans. Yes but with a rider that the principal should have
declared the premises of such job-worker as his additional
place of business or where the job-worker is a registered
person or where the goods have been notified.
Ans. The goods can be supplied directly from the place of
business of job-worker without declaring it as additional
place of business in two circumstances namely where the
job-worker is a registered taxable person or where the
principal is engaged in supply of such goods as may be
notified in this behalf.
Ans. In the MGL, aspects relating to taking input tax credit
in respect of inputs/capital goods sent for job-work have
been specifically dealt in Section 16A, which provides that
the credit of taxes paid on inputs or capital goods can be
taken in the following manner:
Principal shall be entitled to take credit of inputs sent to a
job-worker if the said inputs, after completion of job-work
are received back in 180 days from the date of being sent
out. In case the inputs are sent directly to the job-worker,
the date shall be counted from the date of receipt of inputs
by job-worker. Further an amount equivalent to the input
tax credit availed on such inputs has to be paid along with
interest, in case the inputs are not received back within the
specified time. The credit can be reclaimed when the inputs
are actually received back.
Ans. No. The provisions relating to job-work are applicable
only when registered taxable person intends to send taxable
goods. In other words, these provisions are not applicable
to exempted or non-taxable goods or when the sender is a
person other than registered taxable person.