<p><span>In Circular No. 38/12/2018, dated March 26, 2018, the Ministry of Finance, Government of India, provides essential clarifications regarding the procedures for sending goods for job work and related compliance requirements under the GST regime. This circular addresses various issues faced by taxpayers, ensuring a uniform approach to the implementation of job work provisions.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>Scope of Job Work</strong>: The circular defines job work as any treatment or process undertaken by a person on goods belonging to another registered person. Job workers can use their own goods in addition to those received from the principal.</span></li><li><span><strong>Registration Requirement</strong>: Job workers are required to register only if their aggregate turnover exceeds the specified threshold, irrespective of whether the principal and job worker are in the same State or different States.</span></li><li><span><strong>Supply from Job Worker's Premises</strong>: The principal can supply goods directly from the job worker's place of business. Such supply will be regarded as made by the principal.</span></li><li><span><strong>Documentary Requirements</strong>: Goods sent for job work must be accompanied by a challan, and an e-way bill must be generated if the consignment value exceeds ₹50,000. FORM GST ITC-04 must be filed quarterly.</span></li><li><span><strong>Invoice and GST Payment</strong>: The job worker must issue an invoice for job work services and pay GST if liable. The principal must issue invoices for supplies from the job worker's premises.</span></li><li><span><strong>Input Tax Credit (ITC)</strong>: The principal can avail ITC on inputs or capital goods sent to job workers. The job worker can also avail ITC on inputs used in supplying job work services if registered.</span></li></ol><p><span>This circular provides much-needed clarity on job work procedures, facilitating smoother operations and compliance under the GST framework.</span> <a href="https://cms.plasament.com/storage/jobwork-circular-38-of-2018.pdf">jobwork_circular_38_of_2018</a><br> </p>