No, because there is no transfer of title and no consideration for the items, products sent by a GST registered person to a job worker is not a supply. According to Section 143 of the Central Goods and Service Tax Act, a registered taxable person (the principal) may, after following the authorized procedure, deliver any inputs or capital goods to a job worker for job work without paying tax, and the principal shall either
- Return such GST inputs or capital goods after completion of the activity or otherwise within the stipulated period, which is one year for GST inputs and three years for capital goods, or
- Supply such (ITC) inputs or capital goods within the stipulated time frame, on payment of tax within India, or with or without payment of GST for export, as applicable.
If the goods or capital goods are not returned to the principle within the time stated above, they will be regarded to have been supplied by the principal to the job worker on the date the goods were sent out to the job worker, and the principal will be required to pay GST on such supplies.