E-way bill is a document which has details like name of consignor and consignee, their GSTIN numbers (if they are registered), description and value of goods in the consignment and transport details.

E-way bill has to be generated before initiating the movement of goods, and the transporter needs to carry it along with invoice during the movement of goods.

Cases where e-way bill has to be issued

E-way bill has to be issued in case of –

  1. Supply
  2. Reasons other than supply (including job work)

Thus, if goods are sent for job work or received back from the job worker, the e-way bill has to be issued. Our today’s blog throws some light on the concept of job work, e-way bill issuance, and documents to be carried during movement of goods.

What is job work?

Job work is an integral part of several sectors since many businesses outsource a part of their manufacturing activities. Job work can include initial processing, further processing, assembling, packing or any other completion process.

Section 2(68) of CGST Act describes job work as a treatment or process undertaken by a person on goods belonging to another registered person.

GST on Job Work: Scenarios that may arise

The principal can claim the input tax credit of goods or materials sent to the job worker.

If the goods or materials are directly sent to the job worker from the vendor. then also the principal can claim the input tax credit on such goods or materials.

Issuing e-way bills in case of job work

If the principal is located in a different state, and he is sending the goods to job worker who is located in another state, the principal has to generate the e-way bill compulsorily.

Threshold limit of Rs. 50,000 doesn’t apply in this case, hence even if the value of goods sent to job worker is less than Rs. 50,000, the principal has to generate the e-way bill.

E-way bill for goods returned after job work

Once the job work has been completed on goods, the principal can either receive back the goods or can ask the job worker to supply the goods directly to the customers.

If the job worker is registered on e-way bill portal, he will generate the e-way bill for the movement of goods, and if he isn’t registered, the principal has to generate the e-way bill.

For supplying the goods directly from the place of job worker to the customers, it is necessary that –

  1. Job worker should be registered u/s 25 or,
  2. The principal should declare the place of job worker as his additional place of business.

In this case also, if the job worker is registered, he will issue the e-way bill otherwise the principal has to issue the e-way bill and provide it the transporter.

Document to be issued before sending goods for Job Work

If goods are sent for job work, there is no need to issue any tax invoice. Instead, a delivery challan can be issued for the goods. Delivery challan will contain following details –

  1. Date and number of the delivery challan,
  2. Name, address, and GSTIN of the consignor (principal) and the consignee (Job Worker). GSTIN has to be mentioned if the consignor/ consignee is registered under GST.
  3. HSN code and description of the goods,
  4. Quantity
  5. Taxable Value
  6. Tax rate and tax amount
  7. Place of supply, if there is inter-state movement of goods,
  8. Signature

Documents to be carried by the transporter during movement

During the movement of goods, the transporter needs to carry following documents –

  • E-way bill copy
  • Delivery Challan
  • Invoice Copy (if the goods are directly sent to the job worker from the vendor’s place

This article was originally written for Masters India, and the content herein shouldn’t be reproduced without the due permission from the author or the company. 

Author Bio

Qualification: Graduate
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Location: Jaipur, Rajasthan, IN
Member Since: 31 Oct 2017 | Total Posts: 13
A CA aspirant by profession, Hardik is also a passionate content writer who has worked with reputed media houses and start-ups, magnifying on topics like Direct Taxation, GST and social issues through his writings. Besides this, he has been a paper presenter at various CA National Conferences and is View Full Profile

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14 responses to “E-Waybill Provisions for Job Work under GST Regime”

  1. San says:

    Who will prepare eway bill when goods purchased from supplier are directly sent to job worker premises?

  2. J RAMESH says:

    iam an job worker of iron grills and windows. i have no gst registration since my turnover will not exceed 20 lakhs. how should i move the goods given to me for job work.. should i also prepare E way bill, or my labour charges bill is enough. please advice.

  3. Bighnesh says:

    Finished goods sent by the job worker to the customer from another state on behalf of the principal, in this case how to make the GST way bill.

    • Hardik Lashkari says:

      Hi Bighnesh,

      For goods to be directly supplied from the place of job worker to the customer, it is important that either job worker must be registered under GST or the principal must have disclosed job worker’s place as additional place of business. If it is the case, job worker can generate e-way bill and directly supply the goods to the customer by charging IGST.

      • Bighnesh says:

        Thank you,
        I am job worker located in Telengana, Principal is from Maharastra & customer is from West Bengal/Karnataka. And we all are registered. Presently I make a job work invoice & way bill and sent it Principal. But in actual the movements of goods to another state. Now in this case suppose I have to generate a way bill for the customer in which value I should make the way bill, is it as per the principal invoice value or my job work invoice value.

  4. Pawan Kumar Shukla says:

    Thanks for your useful notifications sir

  5. shyam says:

    we should disclose value of Goods plus job work charges in e way bill

  6. shyam says:

    We should disclose value of Goods plus job work charges in e way bill.

  7. Nayan vaghela says:

    Whether Form ITC 04 is require to file by Jobworker or only require by the Manufacturer?

    Form ITC 04 is for Goods sent for jobwork & return back after jobwork

  8. Rajesh Mehta says:

    The value of Service provided by the Jobworker to the Principal.

  9. pukhraj jain says:

    good article.
    pl confirm e way bill is applicable for items sent for repairing.

  10. Sumit says:

    What value should be disclosed in eway bill when goods are returning back to principal?

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