Job work under GST explained

Sending goods without tax

Under Section 143, a principal can send inputs and capital goods to a job worker without paying tax, on a delivery challan. The principal can claim ITC on those goods even though they are at the job worker's premises.

• Inputs must be brought back, or supplied from the job worker's premises, within 1 year
• Capital goods must come back within 3 years
• Moulds, dies, jigs, fixtures and tools have no time limit
• If the limit is missed, the goods are treated as supplied on the date they were sent, with tax and interest

Reporting through ITC-04

The principal reports goods sent to and received from job workers in Form ITC-04. Principals with aggregate turnover above Rs. 5 crore file it half-yearly, and others annually. Waste and scrap at the job worker's premises can be supplied by the job worker if registered, or by the principal.

The job worker's side

The job worker charges GST on the job work charges, which is a supply of services. A job worker needs registration only if its own turnover crosses the threshold, though some notified cases differ. Inter-state movement of goods to a job worker needs an e-way bill regardless of value.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.