Whether a job worker is required to take registration under GST depends on the following factors:
- Aggregate turnover: A job worker is required to register under GST if their aggregate turnover in a financial year exceeds the threshold limit of Rs. 20 lakh in case of other states and Rs. 10 lakh in case of special category states.
- Nature of business: A job worker who provides services in relation to goods such as jewellery, goldsmiths and silversmiths wares and other articles of Chapter 71 of Customs Tariff is required to register under GST irrespective of their aggregate turnover.
- Inter-state supply: A job worker who makes inter-state supply of goods or services is required to register under GST irrespective of their aggregate turnover.
If a job worker is required to register under GST, they can do so by filing an application with the GST authorities in their state. The application must be accompanied by the requisite documents, such as a PAN card, Aadhaar card, and proof of address.
Once a job worker is registered under GST, they are required to follow all the rules and regulations of GST, such as filing returns, paying taxes, and maintaining records.
Here are some of the benefits of registering under GST for job workers:
- Input tax credit: Job workers can avail input tax credit (ITC) on the goods and services that they purchase for job work.
- Simplified returns: Job workers can file simplified returns under GST.
- E-way bill: Job workers are not required to generate e-way bills for the movement of goods for job work.
- Composition scheme: Job workers can opt for the composition scheme under GST, which will reduce their compliance burden.
If you are a job worker, it is important to understand the GST registration requirements and the benefits of registering under GST. You can consult with a tax expert to get more information about GST registration and compliance requirements.