Should job worker and principal be located in same State or Union territory?

No, it is not necessary for the job worker and principal to be located in the same state or union territory. The job work provisions under GST are applicable to all job workers and principals, irrespective of their location. However, there are some specific rules and regulations that apply to job work that is done across state or union territory borders.

For example, if the job worker and principal are located in different states or union territories, then the job worker must be registered under GST in the state or union territory where the principal is located. Additionally, the job worker must obtain an e-way bill for the goods that are being sent for job work.

The following are some of the key rules and regulations that apply to job work that is done across state or union territory borders:

• The job worker must be registered under GST in the state or union territory where the principal is located.
• The job worker must obtain an e-way bill for the goods that are being sent for job work.
• The job worker must account for the input tax credit on the goods that are sent for job work.
• The principal must account for the output tax on the goods that are received back from the job worker.

If you are considering sending goods for job work to a job worker that is located in a different state or union territory, it is important to be aware of the specific rules and regulations that apply. You should also consult with a tax professional to ensure that you are complying with all applicable GST laws.