Job work
In India, sending inputs or semi-finished goods to another business for processing, such as plating or machining, without transferring ownership.
Goods go to the job worker under a delivery challan, and the principal stays the owner. Under section 143 of the CGST Act, inputs must come back within a year and most capital goods within three, or they are treated as supplied on the day they left.
Principals report movements to and from job workers in Form ITC-04.
Where it goes wrong
Returns, scrap and work in progress are reported by phone, so the challan register shows material out that nobody can account for.
What Spurby does
Builds a balance for every challan from photos, e-way bills and messages, and warns stores and tax before the limit.
Spurby for manufacturingOn our roadmap