Tax Liability under GST Regime

The GST law has exclusive provisions on Job Work and related activities. The GST law allows the principal to send taxable goods, without payment of tax, to a job worker. There can be further movement of such goods from one job worker to another. However, such goods must be brought back to principal’s place of business and must be removed after payment of tax thereon.

In simple words, a principal can remove goods from the place of supply without payment of tax, provided such goods are sent for job work and are intended to be brought back for a taxable supply. Such removal of goods is allowed only after a declaration stating the same is made.