Job work under GST

Job work is a common manufacturing and processing arrangement where one person sends goods to another for treatment, processing or finishing. GST has specific rules because goods move without being sold in the ordinary way.

Two roles

The owner of the goods is the principal. The processor is the job worker. The goods may move to the job worker and back without an immediate sale.

Documentation

These movements are often supported by a delivery challan instead of a tax invoice. Records must show what moved, when it moved, and whether it returned within the allowed time.

Why it matters

If you are in fabrication, printing, tailoring, packaging or subcontract manufacturing, understanding job work rules prevents accidental tax mistakes on routine goods movement.