Provision for Supply of Goods to Job Worker under Revised GST Law

Under the revised Goods and Services Tax (GST) law, the government has made provisions for the supply of goods to job workers. These provisions have been put in place to ensure that the job workers have access to the necessary goods to carry out their work without any hindrances or delays. In this article, we will be discussing the provisions related to the supply of goods to job workers under the revised GST law.

Definition of Job Worker

Before we delve into the provisions related to the supply of goods to job workers, let us first understand who a job worker is. A job worker is a person who undertakes any job or process on behalf of the registered person. The job worker may or may not use the materials supplied to them by the registered person to carry out the said job or process. This definition of job worker is in line with the definition provided under the earlier GST law.

Provisions Related to Supply of Goods to Job Workers

Under the revised GST law, the government has made provisions for the supply of goods to job workers. The provisions are as follows:

The registered person can send any inputs or capital goods to the job worker without paying any tax.
If the job worker is a registered person, they can receive the inputs or capital goods from the registered person without paying any tax.
If the job worker is an unregistered person, the registered person will be required to pay tax on the supply of inputs or capital goods to the job worker. The job worker can then claim the input tax credit for the tax paid by the registered person on the supply of inputs or capital goods.
The inputs or capital goods supplied to the job worker should be used only for the job work and not for any other purpose.
If the inputs or capital goods are not returned by the job worker within the stipulated time, the registered person will be required to pay tax on the same.

Time Limit for Return of Inputs or Capital Goods

The job worker is required to return the inputs or capital goods within a period of one year from the date of their receipt. If the inputs or capital goods are not returned within this period, the registered person will be required to pay tax on the same.

Conclusion

The provisions related to the supply of goods to job workers under the revised GST law have been put in place to ensure that the job workers have access to the necessary goods to carry out their work without any hindrances or delays. The provisions are simple and straightforward and provide clarity on the tax implications of the supply of goods to job workers. As a registered person, it is important to understand these provisions to ensure compliance with the revised GST law.