Tuesday, 10 January 2017

JOB WORK UNDER GST (Section-55 Special procedure for removal of goods for certain purposes under Model GST Law)

               JOB WORK UNDER GST

                       Section-55.                           Special procedure for removal of goods for certain purposes under Model GST Law


(1) A registered taxable person (hereinafter referred to in this section as the
“principal”) may, under intimation and subject to such conditions as may be
prescribed, send any inputs and/or capital goods, without payment of tax, to a
job worker for job-work and from there subsequently send to another job worker
and likewise, and shall -

(a) bring back inputs, after completion of job-work or otherwise, and/or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year
and three years, respectively, of their being sent out, to any of his place of
business, without payment of tax;

(b) supply such inputs, after completion of job-work or otherwise, and/or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year
and three years, respectively, of their being sent out from the place of business
of a job-worker on payment of tax within India, or with or without payment of
tax for export, as the case may be:

PROVIDED that the principalshall not supply the goods from the place of
business of a job worker in terms of clause (b) unless the said “principal”
declares the place of business of the job-worker as his additional place of
business except in a case-

(i) where the job worker is registered under section 23 ; or
(ii) where the “principal” is engaged in the supply of such goods as may be
notified by the Commissioner in this behalf.

(2) The responsibility for accountability of the inputs and/or capital goods shall lie
with the “principal”.

(3) Where the inputs sent for job-work are not received back by the “principal” after
completion of job-work or otherwise in accordance with clause(a) of sub-section(1) 
or are not supplied from the place of business of the job worker in accordance
with clause (b) of sub-section (1) within a period of one year of their being sent
out, it shall be deemed that such inputs had been supplied by the principal to the
job-worker on the day when the said inputs were sent out.

(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools,
sent for job-work are not received back by the “principal” in accordance with
clause(a) of sub-section (1) or are not supplied from the place of business of the
job worker in accordance with clause (b) of sub-section (1) within a period of
three years of their being sent out, it shall be deemed that such capital goods
had been supplied by the principal to the job-worker on the day when the said
capital goods were sent out.

(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and
scrap generated during the job work may be supplied by the job worker directly
from his place of business on payment of tax if such job worker is registered, or

by the principal, if the job worker is not registered.

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