Article on Job Work relating to Printing Industry under GST

Article on Job Work relating to Printing Industry under GST Scenario:

Dear professional colleagues, Good morning to all of you. I have received suggestions from our friends on services relating to “ Job Work relating to Printing Industry “under GST Scenario. I am preparing an article on the above subject with my little bit knowledge under GST Scenario and share to all of you.
Dear Colleagues before going to subject we have to refer meaning of the following words under GST Scenario.

1. Meaning of Job Work and Job Worker :

As per Section 2(68) of the CGST Act,2017, the meaning of word “ Job Work ,that under taking any treatment or processes by a person on goods belonging to another register person and the expression” job worker” shall be constructed accordingly.

2. Meaning of Goods :

As per Section2(52) of the CGST Act,2017, goods means every kind of movable property other than money and securities, Thus, the term job work is confined to the process undertaken by the job worker on movable goods only.

3. Meaning of Principal:

As per Section 143(1) of the CGST Act,2017,The term “Principal” means a registered person sending taxable goods for job work.

4. Treatment of job work as “service”:

As per clause 3 of Schedule II of the GST Law,2017, any treatment or process which is being applied to another person’s goods is considered as “supply of services”.

5. Dispatch of consumable goods to the job worker:

It was held that the meaning attributed to Inputs in the Explanation to Section 143 takes care of the difference between the inputs sent to job worker and the goods returned after some intermediate treatment/process like galvanization that may exhaust some of the inputs sent out. Thus, the Zinc, etc. exhausted in the process of galvanizing need not be physically returned. If the galvanized structures are returned, that will be sufficient compliance of section 143(1)(a) of the CGST Act,2017.

6. Whether the term “Job worker” includes “own unit”:

When the goods are sent for job work to another unit of the same person , an interesting question arises, whether the transfer would be considered as ‘Stock Transfer” or “transfer for job work” .In my opinion, since various units of the same person have been treated as distinct persons under the GST Law,2017, Transfer to own units would be considered as transfer to job worker. It is important to mention here that goods may be transferred to job worker without payment of tax, subject to other conditions like intimation to GST authorities, return within 1 year etc., whereas, it is not possible in case of stock transfer.

7. Can the person also use his own goods during the process:

It is significant to note that activities involving two or more taxable goods and / or services (other than in relation to immovable property) have been considered as composite
contracts under GST Law,2017. Further, in general, no process or treatment can be completed without adding some incidental goods. Even in case of bleaching process, some chemicals are involved. However, the law says that process must be is applied to another person’s goods. However, if the job worker uses material in a manner so
that the goods used by hi become the principal supply, it would not be covered under this clause.

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