Smooth implementation of GST urge for clarifying certain issues for transparent and tax compliant structure in India. Realising the need of hour, the Government has unveiled the intention of ease and pervasive adherence of GST by clarifying on ambiguities pertaining to job work. Clarity on transaction, some of which are use of own goods by job worker, registration of job worker, document for movement of goods to and from job worker, value of job work services, direct supply of goods from job worker premises etc. have been provided lately.
Considering the on-going developments to simplify the GST law and to drive the growth of job work activities, ICAI has come up with the revised E Handbook on “Job-work under GST”. This handbook is designed to provide an in depth knowledge about detailed and thorough study of the procedure, conditions and restriction for supplying goods to job worker, provisions relating to removal of inputs / semi-finished goods/capital goods by principal to a job worker, duration within which goods to be returned by job worker, and disposal of waste & scrap generated during job work, input tax credits/ on inputs/capital goods procured, place of supply, invoice, delivery challan, generation of e-way bill in case of inter-state supply etc. including the aspects clarified by Circular No. 38/12/2018 dated March 26, 2018 with respect to job work transactions. It is the pertinent to mention that this circular specifically mentions that the principal is not obligated to follow the job work provisions and it is his choice whether or not to avail the benefit of this special provision.