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?
View answer
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 premises 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
What are the time period of Return of Goods?
View answer
| Time Period for Return of Goods | |
| Inputs | One Year |
| Capital Gods | Three Years |
| Mould/Dies | Not applicable as these are consumed in Production |
What is statutory compliance to be made in case of goods sent to Job worker
View answer
The Manufacturer has to fill ITC-04 Form at GST Portal
This form contains details of
Goods Sent to Job worker
Goods Received from Job worker
Goods Sent from one Jobwoker to another job worker
Direct Sale of goods from Job worker premises
Offline utility of form can be downloaded from
https://www.gst.gov.in/download/itc04
The return form is to be filed Quarterly
Due date is
July-Sep 2017 31 Dec
Oct-Dec 25 Jan
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
| A Ltd | |
| Invoice Date :17 Sep 2017 | |
| Purchase of Raw Materials | 15000 |
| CGST 9% | 1350 |
| SGST 9% | 1350 |
| Total | 17700 |
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
| My CO | |
| Invoice Date :31 Oct 2017 | |
| Sale of Finished Goods | 24000 |
| CGST 9% | 2160 |
| SGST 9% | 2160 |
| Total | 28320 |
On What Date,Input will be Available
View answer
9/19/2017 September
Input is Available
Prepare GST Computation for September and October
View answer
SEPTEMBER
| PARTICULARS | CGST | SGST | TOTAL |
| OUTPUT | 0 | 0 | 0 |
| INPUT | 1350 | 1350 | 2700 |
| GST CREDIT | 1350 | 1350 | 2700 |
OCTOBER
| PARTICULARS | CGST | SGST | TOTAL |
| OUTPUT | 2160 | 2160 | 4320 |
| INPUT | 0 | 0 | 0 |
| ADD :OPENING INPUT | 1350 | 1350 | 2700 |
| TOTAL INPUT | 1350 | 1350 | 2700 |
| GST PAYABLE | 810 | 810 | 1620 |
What is last date till which Goods should be received back in factory
View answer
9/19/2018