In our previous article we discussed about the implication of Goods and Services Tax on Job Workers and the tax liability of principal. To continue it further, we are putting all the conditions that you must keep yourself aware during transition. These are the scenario when, as a manufacturer/ principal you have sent goods for job work under current tax regime and receiving it under GST regime.
Raw Material/ Inputs Removed for Job Work and Returned on or after GST Roll-Out
Where goods have been removed from a factory for further processing to a job worker prior to the GST applicable date, i.e. goods were removed under current tax regime however received back after GST roll-out;
Similarly in case of Semi-finished or Finished goods, a job worker is not required to pay tax under GST, if such goods are returned to original manufacturer’s place of business within a period of 6 months from the GST applicable date.
Click Here to read further on the taxation provisions on job work under current tax regime and corresponding law under GST law.