Section 143 of the CGST Act prescribes the procedure for sending inputs and capital goods to a job worker without payment of GST. Job work is a common business practice where a manufacturer (principal) sends goods to another person (job worker) for processing, treatment, assembly, repair, testing, or any other operation. This section facilitates such movement of goods without creating an immediate tax liability, thereby reducing working capital blockage and compliance burden.

Under this provision, a registered person may send inputs or capital goods to a job worker without payment of tax and subsequently receive them back after processing. Inputs sent for job work must generally be returned within one year, while capital goods must be returned within three years from the date of dispatch. The Commissioner may extend these periods in deserving cases. Alternatively, the principal may supply the processed goods directly from the premises of the job worker, subject to prescribed conditions and registration requirements.

If the inputs or capital goods are not returned within the specified period, they are deemed to have been supplied by the principal to the job worker on the date they were originally sent. Consequently, GST along with applicable interest may become payable. Certain goods such as moulds, dies, jigs, fixtures, and tools are excluded from the prescribed time limits.

The objective of this section is to support manufacturing and processing industries by allowing tax-free movement of goods for job work while ensuring proper tracking and accountability. It enables businesses to utilize specialized processing facilities without facing unnecessary GST costs.

Example:
A furniture manufacturer sends timber to a job worker for cutting and polishing. The processed timber is returned within one year. No GST is payable merely because the goods were sent for job work.

Key Point:
Inputs and capital goods can be sent for job work without payment of GST, subject to prescribed conditions.

In One Line:
Section 143 enables tax-free movement of goods for job work within specified time limits.