Section 143 - Job work procedure
Chapter XXI - Miscellaneous
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Finin2min Summary - Section in 2 Minutes
Allows a principal to send inputs or capital goods to a job worker without payment of tax, subject to intimation, records and return/supply within the statutory periods. Failure converts the movement into a deemed supply from the original dispatch date.
Exact operative text
143. Job work procedure.-(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.
[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.
Paragraph-wise decode
Allows a principal to send inputs or capital goods to a job worker without payment of tax, subject to intimation, records and return/supply within the statutory periods. Failure converts the movement into a deemed supply from the original dispatch date.
Section-Rule-Form-Notification bridge
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Inputs sent for job work are not returned or supplied within one year. The principal reports a deemed supply from the original dispatch date with interest consequences.
Professional alert
One year applies to inputs and three years to capital goods, subject to statutory exclusions and extensions. Track challan-wise aging.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does section 143 regulate?
- It regulates job work procedure. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- Rule 45. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.