The term Job-work itself explains the meaning. It is the processing of goods supplied by the principal manufacturer to the job worker. The person who sent the goods for job work is called the principal and the one who does the said job is known as ‘job worker. As per section 2(68) of the CGST Act 2017, "job work" means any treatment or process undertaken by a person on goods belonging to another registered person. Eg.- Packing, Fitting, etc. Further, it is clarified that supply of goods by the principal from the job worker premises will be regarded as supply by the principal and not by the job worker. Therefore, while ascertaining the requirement of GST registration, value of such goods supplied will be added in the aggregate turnover of the principal and not job worker. Job work procedure under GST 1. Sending goods from principal's premises to job worker's premises • A principal can send input/capital goods without payment of tax to a job worker. • Goods will be removed under intimation to the proper officer and subject to certain conditions. • Principal is not required to reverse the input tax credit (ITC) availed on input/capital goods dispatched to job-worker. 2. Sending goods directly to job worker's premises A principal can send inputs or capital goods directly to the job worker without bringing them to his premises. Credit of tax paid on such inputs or capital goods can be claimed. 3. Removal of goods from job worker's place After processing of goods, the job worker may clear the goods to- (i) Another job worker for further processing; (ii) Dispatch the goods to any of the place of business of the principal without payment of tax; (iii) Remove the goods on payment of tax within India or without payment of tax for export outside India on fulfillment of conditions. Read more: https://www.taxgyata.com/ap/job-work-under-gst/