Calendars lying on the desks have flipped to welcome the February month. E-way bill system will be rolled out from 1st February, making the life for tax evaders even more difficult. In this article we'll explain e way bill for job work limit, e-way bill for goods returned after job work and how to generate e way bill for job work return as well.
E-way bill is a document which has details like name of consigner and consignee, their GSTIN numbers (if they are registered), description and value of goods in the consignment and transport details in Eway Bill for Job Work. Next you'll come to know about job work HSN code for e way bill as well and is e way bill required for job work?
E-way bill has to be generated before initiating the movement of goods, and the transporter needs to carry it along with the invoice during the movement of goods in e way bill for job work within state.
Job work E way bill has to be issued in case of –
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.
Job work is an integral part of several sectors since many businesses outsource a part of their manufacturing activities. Eway bill for job work material 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.
There are certain scenarios that may happen related to job work –
The principal is eligible to claim input tax credit of (semi-finished goods/ raw materials) for job work. He can claim the input tax credit of the inputs even if they are sent to the job worker directly from the place of the vendor.
In both the cases, inputs must be received back by the principal within 1 year, else the input tax credit will be reversed.
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.
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 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 –
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.
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 –
During the movement of goods, the transporter needs to carry following documents –