Arjun (Fictional Character): Krishna, E-Way is now been fully implemented on inter as well as intra state transportation of goods, Taxpayers are aware of generation of E-Way  bill on Normal Sale and Purchase transactions but still they have a confusion regarding generation of E-Way bill on other transactions.

Krishna (Fictional Character):Arjuna, Correctly said.  Apart from normal sale and purchase transactions there are other transactions such as free samples, Job-Work, Supply to unknown recipient etc which take place in normal course of business. Hence provisions of E-Way bill must be known to taxpayers else they will land in trouble.

Arjun:Krishna,Is E-Way bill required for Goods sent on Job-Work?

Krishna:Arjuna, E-Way bill is required to be generated by any person who causes movement of goods of consignment value exceeding Rs 50,000-

1. In relation to supply

2. Reasons other than supply

3. Due to inward supply from unregistered person.

Reason other than supply includes job work hence E-Way bill will be required to be generated on the basis of Delivery Challan given by the principle to the job-worker and vice versa.

Arjun:Krishna,E-way bill is not required if consignment value is less than Rs 50000 does this apply for job work also?

Krishna:Arjuna there are two cases for goods sent on job work basis-

1. Inter state

If goods are sent from one state to another state e-way bill has to be generated by principal irrespective of value of consignment

Example – A of Aurangabad send goods for job work to B of Indore and the value of consignment is Rupees 10,000 e-waybill has to be generated by A compulsorily.

2. Intra state

If goods are sent on job work from one place to another place in the same state, e-waybill has to be generated only if value of goods is above Rs 50000 irrespective of the distance travelled

For example-Ifgoods are sent toNashik from Aurangabad of consignment value rupees 20,000 the E-Way bill is not to be generated as the value of the consignment does not exceed Rs 50000.

Arjun:Krishna how will the principal generate e waybill?

Krishna:Arjuna, for generating e waybill the principal

1. Must login on the E-Way Bill portal with his username and password

2. Click on generate new e-way bill

3. Select transaction type as job work

4. Select document type as delivery challan, provide date of challan

5. Mention GSTNof the job worker in the BILL TO Section, if the job worker is unregistered then mention as URP (unregistered person)

6. Provide value of goods, Description of product, HSN code, Tax amount, Rate Based on delivery challan.

After that Part-B must be filled.

Arjuna:Krishna what value should be provided while generating e way bill in case of goods sent on job work?

Krishna:Arjuna, e waybill is generated on the basis of delivery challan; the value mentioned in delivery challan must be mentioned in Part A of E way bill

For example A (Principle) sends goods of value Rs 200000 to B(job worker), then A should prepare a delivery challan and generate e-way bill on the basis of delivery challan and The value entered will be Rs 2 lakh

Now, When B(job worker) sends the goods back to a principal he issues Invoice ofRs 50000 as job work charges, in this case E-Way bill must be generated of Value Rs 2,00,000 only.

How to determine the value of rs.200000 is a big question in itself for this one needs to refer Valuation Rules.

Arjuna:Krishna, what will happen if goods are transported directly from job worker’s premises to the customer?

Krishna:Arjuna two cases might arise here-

1. Job worker is unregistered-

If goods are directly sent from job workers premises to the customer and job worker is unregistered then e-way bill must be generated by the principal

2. If job worker is registered

If goods are directly sent from job worker premises to customer and Job worker is registered in GST then the job worker must generate e way bill by collecting invoice from the principal.

Arjun: Krishna, How will the department keep an eye on the goods sent on job-work and received back ?

Krishna: Arjuna, A person sending goods on job-work basis has to file Return ITC-04 on quarterly basis. Here delivery challan wise details of goods sent on Job worker and received back needs to be given.

For Ex- A (Principle) sends 100 TV sets to B(Job Worker) and receives back only 80 TV sets from Job worker B, 15 sets were sent to another Job worker and 5 sets were directly sold from job worker’s premises. Then while filing ITC-04 –the in details of goods sent to job worker (100 sets) and Goods received from Job worker (80 sets), goods sent to another  job worker (15 sets) as well as goods supplied by job worker (5sets) all such details would be required to be given. Hence Goods sent out and Received back would be matched.

Arjuna:Krishna, what lesson must be learnt by the taxpayer?

Krishna: Arjuna, Various taxpayers send their goods for job-work. Government will now be able to track movement of goods sent on job work through E-Way bill. If goods are transported without E-Way bill and if caught by the tax officer, goods may be confiscated/seized and penalty shall be levied. Everyone should check the generation of E-Way bill and follow the Law.

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25 Comments

  1. surendra Maurya says:

    Dear Sir
    Please Reply
    Job work Proces.. Complite
    Delevery Challan me Value of Goods Kish Tarah se final Karna
    Mana Ki 5000 KGS ka material rate 100 RS hai
    to ab job work kiya ab mera charges 18 rs Per KG Charges Karna hai
    to
    ab Mai invoice Kitana ka banaunga aur Delevery Challan Per Goos ki value kya hogee
    Please reply
    Mo 7016740749

  2. Jamal says:

    Sir
    We have received back, our material , from our job worker through delivery challans having value less than 50000.00 issued by job worker. and job work charges invoice have been issued by job worker having value more than 100000.00. is eway bill required alongwith job work invoice.

  3. dhanalakshmi says:

    Dear Sir,

    Party A will send the material to party B for job work after the cutting of the material directly sent to party C for bending so my question is what is the value we want to enter in e way bill after the job work of party B.

  4. rajat says:

    in case of job work return, while returning goods to principal who will generate the e way bill and what should be the appropriate transaction type?

  5. VISHAL AGAGRWAL says:

    IF SOMEBODY SEND MATERIAL FOR JOB WORK FROM ONE STATE TO ANOTHER ON REHRI , DO IT STILL NEEDS EWAY BILL EVEN IF VALUE IS MORE THAN 50000

  6. Sandeep says:

    my company – (A) & another company (B) situated in a single premises in maharashtra state and (A) send material to (B) for job work only & after job work (B) return to (A) with charge bill of job work charges only. that case required e-way bill for material sending or not. and how to made such type of transactions.

  7. Ravi Kumar says:

    pls confirm if we send material after the job work to oyr customer & our job work amount is Rs. 5000 & material value from customer is Rs. 10000…. is need to make e way bill either inter or intra state . Also confirm if material value is more than 50k after added both value (customer & our job work )

  8. Rajendra kumar says:

    Dear Sir,

    Kindly throw some light on this issue…
    If we raise a invoice on party B, consider ourselves as Party A and supply the material to party C on request of Party B, and the same has been mentioned in Eway bill by A, that Bill To Party B and ship to Party C and the material is dispatched. Now we do not know whether the material is for Job work or sales. While in transist is another Eway bill is required by party B on Party C, or he can generate it later after unloading the material.

    Very crucial as majority of our delivery are as per above.

  9. Narasimhan V says:

    On process scrap received from job worker with in 15 KM radius amount @ Rs.90,000/- whether job worker has to raise eway bill
    V Narasimhan

  10. Nilesh S K says:

    I have gone through the article. But please let me know what value must be declared in e waybill by the GST IN registered job worker ( inter-state ) at the time of return back the machined product.

  11. Praveen gupta says:

    If job worker sending back good after job work with 4
    Different items each of bill separately raised and value of each bill is less than 50000 and movement of goods is in same vehicle than is e-way bill compulsory. Consolidate value of four bill is more than 50000

  12. Prime Chemarts Pvt. Ltd. says:

    Our unit is located in Gurgaon (Haryana).We are doing job work from other state like Delhi and noida.

    Up to what amount E way bill is not required

  13. Ravi Kumar says:

    Sir,
    I have one question & i want some clarification about generation of E-way bill for Job work return after job work if job work invoice value is 49,000.

  14. SOUSHAM DINGAL says:

    Dear Sir,

    I have gone through your article. But please let me know what value must be declare in e waybill by the GST IN registered job worker ( inter-state ) at the time of return back the assembled product.

    Thanks & regards,
    Sousham Dingal

  15. PRAVEEN says:

    Dear Sir, we have read your article in lokmat there are some queries, we are forging industry we send forge material for MACHINING & HEAT TREATMENT the distance is around 5 KM is create an eway bill necessary ?
    Please give us your valuable guidance

    Thanking you

  16. SANDEEP says:

    We YCP Industries Belgaum (Karnataka) sending goods to job worker based in Satara (Maharashtra) and on receipt of our Invoice the job worker sends goods to our customer who also in Satara. Our job worker is registered person then how he can issue the E way bill on our Invoice. I want to know the procedure of eway bill in the above case. Please guide.

  17. Gurpreet Singh says:

    Sir,
    I have one question & i want some clarification about generation of E-way bill for Job work return.

    My question is :-
    Material come back from job worker to Principal after job work
    In this case who generate the E way bill ?
    and which value comes in E-way Bill.?

  18. Archana says:

    If we dispatched the goods within 40 km and no way bill is generated for this and the goods is deliverd to the customer without way bill then what is the procedure if we not generate the way bill for the consignent above rs 100000

  19. Manoj Jindal says:

    We have Register job worker.
    we have job work processed material send back to Principal which amount should be mentioned in
    E-way bill
    Can service charges Value or actual cost of material
    Please justify

  20. Swapnil Dusane says:

    Dear Sir,
    We have Register job worker.
    we have job work processed material send back to Principal which amount should be mentioned in
    E-way bill
    Can service charges Value or actual cost of material
    Please justify

  21. Amit Kulkarni says:

    Dear Sir, we have read your article in lokmat there are some queries, we are forging industry we send forge material for MACHINING & HEAT TREATMENT the distance is around 5 KM is create an eway bill necessary ?
    Please give us your valuable guidance

    Thanking you

  22. SUMIT GADHAVE says:

    Dear Sir,
    if we have provided repaired material services (job work) and sending back to customer
    then which amount should be mentioned in Eway bill
    service charges of job work or
    actual cost of material.

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