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When should a Job Worker get GST Registration?

Author: Mudit Handa
by Mudit Handa
Posted: Feb 14, 2019

The Goods and Services Tax (GST ) regime has, in fact, made the whole situation of indirect taxation very systematic. All parts of the everyday business are legitimately secured and regulated under GST, and thus, GST has brought about incredible simplicity of working together.

There are clear arrangements for GST registration under GST laws for each sort of business activity.

  • As of late, GST office has marginally altered the arrangements for GST registration for Job workers. According to the new arrangement, a Job worker has is required to get GST registration just if his total turnover, in a financial year surpasses the threshold furthest reaches of?20 Lacs.

Presently, we should understand the idea of Job work.

#1. What is implied by Job work?
  • Job work essentially implies that an individual embraces a treatment or handling of the goods having a place with another broker who is having GST registration.
  • Here, the individual who has attempted treatment or further preparing of the goods is called 'principal'.
  • The individual to whom actually the goods have a place is called 'job worker'.
#2. How is Job work characterized by GST laws?
  • According to the Section 2(68) of the CGST Act 2017, 'Job work' relates to any kind of treatment or procedure attempted by an individual ( who is a job worker) on goods of someone else having GST registration, who is also known as Principal.
  • While the individual who is dispatching the goods for the job work (Principal) needs to get a GST registration, the guidelines for GST registration restrictively apply on the job worker.
#3. When carries out a job worker require GST?
  • From 1st February 2019, a Job worker is required to acquire GST registration just on the off chance that his total turnover in a specific financial year is past the threshold furthest reaches of?20 Lakh.

This is independent of the fact whether the principal and the job worker are working from a similar State or in other States.

#4. What were prior arrangements for the job worker?
  • Prior, a Job-worker should get mandatory GST Registration just if his principal is situated in another state, regardless of the threshold limit.
  • Already, arrangements of section 24(i) of the CGST Act 2017 had connected, which accommodates the necessary registration of providers making any inter-State supply of services.
  • After 1st February 2019, a Job worker needs to get GST registration just in the event that his total turnover in a specific financial year is over as far as possible.
#5. How shall goods sent by a principal to job worker treated under GST?
  • It will be treated as a supply as supply incorporates all types of supply, for example, deal, exchange, and so on.
  • Be that as it may, the enrolled taxable individual (the principal), under prior notice and subject to such conditions as might be recommended can send any inputs and capital goods, without the payment of GST tax, to a job worker for purpose of job work and from that point consequently to other job workers.
  • However, in case he either brings back such inputs or capital goods after finishing the job work generally before 1 year or 3 years of their being sent such input or capital goods after fulfillment of job work.
  • He has to generally send inside 1 year or 3 years of their being conveyed, from the address of his business of the job workers on the payment of GST tax within India, or with or without the installment of GST for the purpose of export.
About the Author

Mr.Handa has a keen intellect on a wide range of fields including economy, politics, Indian taxation and finance, culture and history.Being a student of economics and political science,

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Author: Mudit Handa

Mudit Handa

Member since: Jun 04, 2018
Published articles: 2

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