Section 143 lets a manufacturer send inputs and capital goods to a job worker without paying tax, on condition that they come back — or are supplied onward — within fixed periods. If they do not, the dispatch is treated as a supply on the day it left.
Key points
- Under section 143(1) of the CGST Act, 2017 a principal may send inputs or capital goods to a job worker without payment of tax, and bring them back, or supply them from the job worker's premises if declared as an additional place of business (or if the job worker is registered or the goods are notified).
- Inputs must return within one year and capital goods within three years; the Commissioner may extend these by up to one and two years respectively (proviso, from 01.02.2019).
- If not returned in time, the goods are deemed supplied by the principal on the day they were sent (section 143(3)–(4)); moulds, dies, jigs, fixtures and tools are excluded from the time limit.
- The principal is responsible for accounts (section 143(2)); waste and scrap may be supplied by the job worker directly if registered, or by the principal otherwise (section 143(5)).
The provisions
143(1)–(5)Job work procedure
Statutory text
(1) A registered person (hereafter in this section referred to as the "principal") may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,-
(a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;
(b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case -
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner:
1[Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.]
(2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.
(3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out.
(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered.
Explanation.-For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker.
*Enforced w.e.f. 1st July, 2017.
1. Inserted by s.29 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) -Brought into force w.e.f. 01st February, 2019.
- Rule 45, CGST Rules; Form GST ITC-04
- Circular 38/12/2018-GST
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- How long can goods stay with a job worker without GST?
- One year for inputs and three years for capital goods, extendable by one and two years respectively; moulds, dies, jigs, fixtures and tools have no limit (section 143 CGST).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Movements are reported in Form ITC-04 — half-yearly or annually depending on turnover (Rule 45). Circular 38/12/2018-GST explains the procedure. "Input" includes intermediate goods arising during processing (Explanation).