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 –
- Supply
- 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 –
- Job worker should be registered u/s 25 or,
- 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 –
- Date and number of the delivery challan,
- 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.
- HSN code and description of the goods,
- Quantity
- Taxable Value
- Tax rate and tax amount
- Place of supply, if there is inter-state movement of goods,
- 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.
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if A Faridabad send the material Rs.40000,00 to B Delhi for Job Work and B Delhi send back the after job work, how much amount of Eway bill generate
hi
Please clear is it mandatory to issue eway bill within the distric for jobwork distance less than 50km and value less than Rs. 50000/-
Which value should be considered for job work eway bill
1. Material value
2. Job work cost
If I m reseller and I directly supply goods from manufacturer , no transportation taken place than it is necessary for manufacturer to generate e way bill?
Sir,
If principal and Job worker are situated within the state and the job worker is un-registered in GST, but place of job worker far from 100 Km in same state. Then Principal need to issue e-way bill or not?
Sir, we are manufacturer & we need to move some job to job worker, but want to know the distance criteria for Job work
In my opinion when the job worker is sending the goods back to principal then the job worker should show the value of job work and tax payable thereon and showing the description of good job work on the goods of the principal and they show the value of good equal to the amount as shown in the invoice by which the goods has been sent by the principal under exempted category. Hence there should be two value one value of goods exempted and value of taxable supply
I’m job worker, i want to know when i return the goods to principal then e way bill generated by me, but which values, as like principal value or our service value. I am not sure, but i have registered. Please explain it.
a) What is the format of “Deilvery Challan” when the
(i) job worker is returning the goods after job work to
the principal.
(ii) job worker is sending the goods after job work
to another job worker.
b) How to ascertain Taxable Value, Tax Rate & Tax
Amount when the job worker is issuing a delivery
challan? For ex. Taxable Value of goods is Rs.100000 and the value of Job is just Rs.10000 moreover say tax rate for the goods is 18% and for the job it is 5%.
c) How to create an E-way bill for the above mentioned scenarios.
Thanks in anticipation.
Who will prepare eway bill when goods purchased from supplier are directly sent to job worker premises?
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.
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.
Thanks for your useful notifications sir
we should disclose value of Goods plus job work charges in e way bill
We should disclose value of Goods plus job work charges in e way bill.
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
The value of Service provided by the Jobworker to the Principal.
good article.
pl confirm e way bill is applicable for items sent for repairing.
What value should be disclosed in eway bill when goods are returning back to principal?