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E-Way Bill Provisions for Job Work

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.

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.

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

There are certain scenarios that may happen related to job work –

  1. Inputs are sent by principal to the job worker
  2. Inputs are sent to the job worker directly from the vendor
  3. Inputs are received back by the principal after job work completion
  4. Finished goods are directly supplied to the customer from the job worker

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.

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 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

Comments 32

Ranjit singh

February 12, 2018

Who will make e way bill when material directly supplied to the job worker from supplier?

CA Ruchika Tulsyan

February 19, 2018

Supplier will prepare

yogesh Kumar

February 18, 2018

My question is in this value fills in e way bill between principal value or job work value

Vishal S

February 18, 2018

While sending the goods for job work the eway bill has to be for the amt of material sent…. say 1,00,000.

Post finishing say the jobwork amounted to 5000.

Who should generate the eway bill and for what amt when both are registered dealers

PRATEEK KHURANA

March 16, 2018

WHILE SENDING THE GOODS BACK TO THE PRINCIPAL, AFTER JOB WORK
1- WHICH TRANSACTION TYPE WILL JOB WORK CHOOSE IN EWB?
2- WHICH DOCUMENT TYPE WILL HE CHOOSE, INVOICE OR DELIVERY CHALLAN? IF HE CHOOSES INVOICE, THEN THE VALUE OF INVOICE WILL ONLY CONTAINS THE JOB WORK CHARGES AND NOT THE VALUE OF GOODS AND IF HE CHOOSES DELIVERY CHALLAN THEN JOB WORK CHARGES WILL NOT COVER IT.
3- WHAT SHOULD BE COVERED IN ITEM DETAILS? GOODS WHICH HE IS SENDING BACK TO ITS PRINCIPAL OR THE AMOUNT OF JOB WORK?

Rasonn

April 4, 2018

I am supplier from Bangalore – Customer is from Kerala – Customer has instructed us to supply fabric in bangalore (job worker) on behalf of them.
How will the e-way bill be generated ?? It has caused a lot of confusion

Rahul Behl

April 6, 2018

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.

G.R Rao

April 6, 2018

I have to send my Equipments for Geotechnical work and under this we have to send our drilling equipments for drilling at site and get the samples and all the equipments will be brought back to our store in Haryana. How to generate the eway bill for this .

RAMKUMAR

April 13, 2018

PLEASE SEND JOB UNDER GST RETURN GOODS TO PARTY WHAT IS EWAY BILL

JITESH MADEKA

April 13, 2018

I am unregistered electric repairing unit I which to get jobs to repair capacitors which interstate job workers , can the jobworkerissue the way bill for bothways for me

Sandeep Sharma

April 21, 2018

I have sent a machine at project site at Delhi from my warehouse in Himachal Pradesh and have generated proper E-Way bill & Retrunable Delivery Challan for the same. Now, the work has been completed at that site and I have another site at Faridabad where same machine is required.
Do I need to bring machine back to Himachal Pradesh before I could send it to Fardibad or is there any provision by which I can directly transfer the machine to new site at Faridabad.
What will be the implication of E-Way Bill & Delivery Challan in this case?

SACHIN CHAWLA

April 26, 2018

Fine, we received goods for job work by e-way bill (mentioning on way bill is for job work) but when we return the goods to principal after job work we have to generate way bill that is also ok. but my question is which amount is to be entered (job work charges or product description which we received) and which option is to choose on top of way bill generation form as supply or job work option.

kindly comment

Aman

May 1, 2018

Pls tell intra state job work rules regarding e way bill.
For amount say 25000rs will we need to make EWB when sending job work within same state (haryana)?

SONI

May 19, 2018

Hello,
IN JOB WORK, SHOULD WE HAVE TO GENRATE EWAY BILL OF LESS THEN 50000??

Bablu

May 21, 2018

is e way bill is apicable for good transfer between two godown over 250km

A.V. HUDDAR

May 25, 2018

we are authorized dealer of a company supplying industrial machine to varies clients, if we have to send machine for repairing to principal manufacturer then will it be a JOB WORK ? If not then what is the procedure for sending a machine for repairing to generate e-way bill.

manoj kumar

May 26, 2018

if material provide by us on site then job work amount exceed Rs.50000/- when e-way bill applicable on job work amount yes or not. please suggested.

KULBEER SINGH

June 2, 2018

what are the changes needed in e way bill generated for receiving goods back from job worker (is the value of goods should be changed or as it is considered while sending goods to the job worker)

Santanu

June 4, 2018

If 4 numbers of unregistered party sending their goods costing Rs.25000 @ each to other unregistered recipients, in a single goods carrier (lorry/ truck), the carrier owner is also a unregistered person. Now the question is who will generate e-way bill?

RAJINDER KUMAR

June 5, 2018

If A send goods worth Rs. 150000 to B (Job Worker) for job work within state. B done job work & make invoice of his job value i.e. Rs. 10000. A received his goods back in his own vehicle or by transport. Now whether B is responsible to issue E Way Bill or not.

Pankaj singla

June 6, 2018

Hello Rajinder Kumar, Yes B is liable to generate eWay bill as the value of goods is Rs.1,50,000 even the service charges is Rs.10,000. The value of the goods will be consider Rs.1,50,000/- Source: http://www.alerttax.in/

Kanishk Garg

June 7, 2018

Plz Guide for the following scenario.
1.principal sends goods to Job Worker-A for job work.
2. Job Worker-A sends goods to Job Worker-B for the next process
3. Job Worker-B sends back goods to the Principal.

Doubts-
1.job worker A will issue eway bill in whose name..? the principal or Job worker B..?
2. eway bill to be made is decided on which value ..? value of job or value of goods..?

Rajesh

June 23, 2018

What would be the value of taxable supply to be made in the eway bill by the job worker. Will the principal also provide eway bill at the time of sending the materials to the job worker

Kartikey Jain

July 2, 2018

Hello sir ,
We are in the business of printing and dyeing of fabric for various exporters. I have certain doubts regarding E-Way bill generation when goods are sent back to principal after job work –

a) What should be the sub-type – Supply/ for jobwork/ others ?

b) What should be entered in the taxable value column – The value of the fabric with fabric’s HSN code only or jobwork service charges with its SAC should also be entered?

c) On value of fabric, should no tax be calculated in the E-Way bill as we are not selling the fabric and only returning it back.

dharmesh

July 12, 2018

our job worker is near within 10 kilometre from our company, then ewaybill is required or not – please confirm

Netra

July 19, 2018

We have our own welding machine of high cost and want to send to site @ Varanasi for project installation work how we prepare E way Bill please guide us

ashok

July 31, 2018

I am publisher and my business printed books jo ki emempted hai and maine exempted goods job work ke liye inter – state bheja and jab printed books ready ho gaya now mujhe inter – state se printed books lani hai
kya mujhe e way bill generate karne ki jaroorat hai

kvl

July 31, 2018

goods procured from supplier A and send to Job work 1 , now from Job work 1 having some problem as to and to avoid delay company decided to send to Job work 2 collecting all raw material form job work 1 . after getting goods ready in job work 2, it needs to be dispatched from job work 2 to customer.

Now delivery challan needs to be prepare between job work 1 to job work 2. Please guide the procedure for the same

APEX DIE CASTERS

August 1, 2018

We have issue e way bill on job work with delivery challen & job work invoice applicable CGST & SGST @ 9% for service, we put value/taxable value in e way bill our principal manufacturer raw material value + our job work value (without GST @18%) our procedure is ok or kindly help us to how to value put in e way bill after
process job work

APEX DIE CASTERS

September 25, 2018

we have sent the clarification on 1st Aug-2018 how to raise E-way bill after process of Job work
kindly confirm

for APEX DIE CASTERS

RAKESH KUMAR KAPAHI

August 20, 2018

WHILE SENDING THE GOODS BACK TO THE PRINCIPAL, AFTER JOB WORK
1- WHICH TRANSACTION TYPE WILL JOB WORK CHOOSE IN EWB?
2- WHICH DOCUMENT TYPE WILL HE CHOOSE, INVOICE OR DELIVERY CHALLAN? IF HE CHOOSES INVOICE, THEN THE VALUE OF INVOICE WILL ONLY CONTAINS THE JOB WORK CHARGES AND NOT THE VALUE OF GOODS AND IF HE CHOOSES DELIVERY CHALLAN THEN JOB WORK CHARGES WILL NOT COVER IT.
3- WHAT SHOULD BE COVERED IN ITEM DETAILS? GOODS WHICH HE IS SENDING BACK TO ITS PRINCIPAL OR THE AMOUNT OF JOB WORK?

ram sharan gupta

September 13, 2018

i receive goods for job work. after job work i returns to the party. job charges rs 10000, cost of raw material was rs 50000. we both are in haryana. what will be the applicability of e way bill? secondly, job charges rs 1000, cost of material was rs 5000. we both are belonging to haryana. what will be the applicability of e way bill in this case ?