Important Points of Job Workers in GST

What is the Job Workers?

A Job Workers is the person who manufactures goods on behalf of some other person.

Example:-

Suppose i have a factory. It is not necessary that all the manufacturing or processing is done by me. Some of it may be outsourced to some other person, like coloring, dyeing, repairing. This person is called Job Workers.

What is meant by Goods Sent Directly to Job worker?

Suppose manufacturer purchases the goods from A LTD 

He ask A LTD not to delivered to goods to him, but sent directly to the Job worker, this is called goods sent directly to Job Worker.

In GST, Can the Manufacturer take input on Goods Received directly by Job worker?

What are the time period of Return of Goods?

What is statutory compliance to be made in case of goods sent to Job worker

In GST,Can the Manufacturer take input on Goods Received directly by Job worker?

Input can be taken by Manufacturer on the Date Goods are Received by Job Worker

However,it should be received by Factory or Sold from Job Worker premised within 1 year of Receipt of Goods

If not received back or sold within 1 year,then it will be Deemed that Goods were sold to Job worker and duty will be paid on it to gather with interest

This interest shall be calculated from date of receipt of goods

this period is 3 years in case of Capital Goods

Example - 1

Goods are Received at Job Worker premises on 19 Sep 2017 for manufacturing

After manufacturing,goods are receipt in factory on 29 Oct 2017

Sale of goods was made on 31 Oct 2017 as follows

On What Date,Input will be Available

Prepare GST Computation for September and October

What is last date till which Goods should be received back in factory