Job Work and GST | GST Meaning
GST meaning Goods and Services Tax which is an indirect tax applied on the goods and service purchased by the customer. This is a simple unified tax applicable all across the nation. The main aim of GST is to remove the different layers of taxation from the system such as entertainment, VAT, purchase tax etc.
GST Meaning – Single unified tax for the entire nation
The tutorial not only aims at providing GST meaning but also providing a brief on the concept of Job Work under GST and special procedure for removal of goods for certain purpose.
The Indian government is taking steps to towards becoming a global manufacturing hub. Today, manufactures are working in an extremely competitive business environment. These manufacturing units are now focusing on their core products and most of the work is outsourced from outsider or Job Workers. These practices ensure cost efficient products and at thereby help accelerates the production cycle.
Job work is understood as the processing or working on goods supplied by the principal to complete a part or whole of the process. The work may be in the initial process, intermediate process, assembly, packing or any other completion process. The goods sent for job work maybe raw material, component parts, semi finished goods and even finished goods. The resultant goods could also be a variation of the same or the complete product.
Section 55. Special procedure for removal of goods for certain purposes
A registered taxable person (hereinafter referred to in this section as the “principal”) may, under intimation and subject to such conditions as may be prescribed, send any inputs and/or capital goods, without payment of tax, to a job worker for job-work and from there subsequently send to another job worker and likewise.
PROVIDED that the “principal” shall not supply the goods from the place of business of a job worker in terms of clause (b) unless the said “principal” declares the place of business of the job-worker as his additional place of business except in a case-
- where the job worker is registered under section 23 ; or
- where the “principal” is engaged in the supply of such goods as may be notified by the Commissioner in this behalf.