This circular provides comprehensive clarifications on procedural, compliance, and tax-related issues concerning job work under the GST regime, in order to remove practical difficulties and ensure uniform implementation of the law.

It clarifies the scope of job work, stating that job work involves any treatment or process carried out on goods belonging to another registered person, and the job worker may also use his own inputs while providing such services. Only a registered person can send goods for job work under the special provisions of section 143, though availing these provisions is optional for the principal.

The circular explains that a job worker is required to obtain GST registration only if his aggregate turnover exceeds the prescribed threshold, irrespective of whether the principal and job worker are located in the same State or different States. It also clarifies that goods supplied from the job worker’s premises after job work are treated as supplies made by the principal, not the job worker.

Detailed guidance is provided on movement of goods, issuance and endorsement of challans, e-way bill requirements, and filing of FORM GST ITC-04 by the principal as intimation for goods sent to or received from job workers. It also addresses scenarios involving direct dispatch to job workers, multiple job workers, and piecemeal returns.

Further, the circular clarifies invoicing, time and place of supply, valuation of job work services, treatment of waste and scrap, consequences of non-return of goods within prescribed timelines, and availability of input tax credit to both the principal and the job worker, subject to conditions under the GST law.