What is Job Work under GST?

What is Job Work

• Job work is defined under section 2(68) of the CGST Act, 2017.
• According the section 2(68), Job work means any treatment or process undertaken by a person on goods belonging to another registered person.
• The one who does the said job would be termed as ‘job-worker’.
• The ownership of the goods is not transferred to the job-worker but it rests with the principal. The job-worker is required to carry out the process specified by the principal, on the goods.
• As per the Clause-3 of Schedule-I to CGST Act, 2017, “Supply of goods by a principal to his agent or by an agent to his principal” shall also be treated as supply and thus GST is leviable on such supply. However, Section 143 of CGST Act permits supply of goods by a registered person (principal) to job-worker without payment of GST.