Section 143(1)(b) of the CGST Act allows the principal to supply goods directly from the job worker’s premises to the customer without bringing them back to the principal’s place of business. This provision simplifies logistics but requires strict compliance.
This article explains the direct dispatch mechanism and the compliance requirements.
Conditions for Direct Dispatch
- The goods must be returned or supplied within the prescribed time limit (1 year for inputs, 3 years for capital goods).
- The principal must issue a tax invoice for the supply.
- The principal must declare the job worker’s premises as an additional place of business, unless the job worker is registered.
- The e-way bill must reflect the job worker’s address as the place of dispatch.
Invoicing
The principal issues the invoice to the customer. The invoice must reference the job worker’s premises as the place of dispatch.
E-Way Bill Requirements
The e-way bill must be generated by the principal, with the job worker’s address as the place of dispatch and the customer’s address as the place of delivery.
Compliance Checklist
- Maintain a register of goods dispatched directly from job worker premises.
- Ensure that the time limit is not exceeded.
- Issue proper invoices and e-way bills.
- Report the supply in GSTR-1.
Conclusion
Direct dispatch from job worker premises is a permitted and efficient arrangement. However, it requires careful compliance with invoicing, e-way bill, and time limit requirements.
At Anuj Desai & Associates, we provide expert advisory services on GST job work compliance, including direct dispatch arrangements. Our team can help you structure your logistics efficiently.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.