Hi , If I get into a contract with a job worker to manufacture garments for my brand , what are the compliances I need abide by . 1). Do I necessarily need to declare the premises of the job worker as an additional place of business ? 2). What are the other job work provisions that I need to take care of . 3). I'd appreciate if a sample template for contract be shared , or where can find one . Please don't say google . Thanks
1. Yes, that is beneficial for many reasons. It's is not mandatory.
2. Majorly, the GST and TDS provisions are of utmost importance while working with job workers. There are so many things to be taken care of in this regard and it is very difficult to jot down so many points all together here.
Regards,
Lakshita Bhandari
Hi,
You need to disclose job worker's place as an additional place of business if you satisfy the following condition.
For supplying inputs or capital goods from the job worker’s place of business, the principal has to declare the job worker’s place of business as his additional place of business, unless-
The job worker is registered OR
The supply is of notified goods
Further, there are lots of things which one should keep in mind while dealing with job worker under Gst such as RCM , deemed supply, TDS etc.
You would appreciate that everything can't be explain here.
Please feel free to take a phone consultation.
Thanks and regards
Abhishek Dugar
CA CS B.Com
As already told the scenario is pertaining principal giving fabrics to a worker to convert it into wearable garments . 1). I have not yet registered for GTIN , because the business has not yet started and I am informed once GTIN is procured , one has to file GST irrespective of the sales or business taking place . So , I wanted to know in this case can i still create a challan for the job work ? 2). If i am personally dropping the raw materials at the job workers , do I still need to attain a delivery challan ? In case of receiving the finished goods from the job worker , the delivery challan will be created by the job worker ? 3).RCM would be taken into account only in case where the job worker is unregistered ? Right ? So , in such a case how would i pay GSTto the government ?
1) If you are unregistered and Job worker is also unregistered, then why you will pay tax? Is your job worker is registered. Please clarify?
I would appreciate answers : SAC code - 998822 . 1). I wish to know if I can send input goods to a job worker before I attain a business GST registration ? 2). In order to send my input goods , do i necessarily require to inform the jurisdictional officer ? 3) . Need a confirmation on this , I learnt there won't be any GST applicable when I send input goods to a job worker and receive back the input goods within 180 days . Does this mean , I won't have to pay GST on the services lend by the job worker ? 4). What is the simplest way to initiate the job work with minimal compliances . i hope to get my queries answered . I understand its a vast topic to literally discuss everything , but I hope my questions would be answered , unlike the last time when my queries were left unanswered .
Hello,
1. Yes, you very well can since your turnover is below the threshold limit and you are not liable for GST.
2. If you are not registered under GST, then how can you inform the JO.
3. It is not about the job work, what they mean is in case the goods are not returned back then it will be considered as Sale of goods and GST will have to be paid on the value of goods.
4. The simplest way is to not get registered if you fall below the threshold and your buyers are ready to purchase from you without having a GST number.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello,
The answer to your questions totally depends if you are registered under GST or not. If you are not then you should not worry about either of them.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
If you are registered or planning to take a registration then the replies are as follows:
1. Yes, you very well can send goods within your state if you are an unregistered person.
2. No.
3. RCM is payable eitherwise. But if the goods are not returned within 180 days then it will be termed as sold and gst shall be payable on the sale amount.
4. Obviously, not being registered is the simplest way.
I appreciate you understanding that its a vast topics with so much to discuss plus so much on our part to understand what the clients intends to say. So it will be better if approach any professional and have a telephonic or personal discussion to clarify your points in a better manner than the question answer way.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP