Question : Whether goods sent by a taxable person to a job worker be treated as supply and will they be liable to GST?
Answer: No, the goods sent by a registered person to a job worker is not a supply, as there is no transfer of
title and no consideration for the goods is involved. In terms of section 143 of the CGST Act, 2017 a registered
taxable person (the principal), after following the prescribed procedure,may send any inputs or capital
goods, without payment of GST, to a job worker for job work and the principal shall either
(i) bring back such inputs or capital goods after completion of job work or otherwise within the
prescribed period i.e. 1 year in case of inputs and 3 years in case of capital goods, or
(ii) supply such inputs or capital goods, within such prescribed period, on payment of tax within India,
or with or without payment of tax for export, as the case may be.
If the goods or, capital goods, as the case may be, are not returned to the principal within the time specified
above, the same shall be deemed to have been supplied by the principal to the job worker on the date the goods
were sent out to the job worker and the principal shall be required to pay tax accordingly on such supplies.
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