Must Read eWay Bill Requirements if You Are a Manufacturer

As far as manufacturers are concerned, introduction of e-Way bill has eased the work. Most of the manufacturers in India use job work to complete their manufacturing process. Here we shall be discussing how e-Way bill compliance needs to be taken care of by manufacturers. But before this, let’s first understand job work clearly.

What is Job Work?

Job work is a part of manufacturing process where the manufacturer outsources a part of manufacturing process. This process can relate to any of the following:

  • initial processing of the product
  • intermediate processing of the product
  • finishing of the product
  • packing of the product
  • assembling of the product
  • any other form of work which directly assist the process of manufacturing.

Cases where e-Way bill generation is required during job work

Case 1 – Where principal sends inputs to a job worker or vice-versa

There may be a situation where the principal sends inputs to a job worker for completing a part of manufacturing process. Under this case, if the job worker is located in some other state then e-Way bill is compulsory. There is no minimum limit on the amount. Even if the value of input is less than ₹50,000 an e-Way bill is mandatory.

On the other hand, if the job worker is sending inputs to the principal, e-Way bill is still mandatory. If the job worker has not registered himself on the e-Way bill website then the principal will be required to generate the e-Way bill.

Case 2 – Job worker supplying goods directly to consumer

There may be a case where job worker has the responsibility to complete the product and deliver it directly to the final consumer. In that case, the job worker’s registration is required under Section 25 or principal’s declaration is required where he mentions job worker’s work place as his additional business place. If the job worker is registered on e-Way bill website, then he needs to generate an e-Way bill.

Checklist for sending inputs to Job Worker

By now it has become clear to us that in case of job work, a manufacture must raise an e-Way bill. Here is a checklist that will help a manufacturer to obtain a Delivery Challan:

Sr. NoRequirement
1Delivery Challan number, with date
2Name, GSTIN and address of the principal and the job worker
3HSN Code
4Quantity of goods that is being supplied
5Taxable value of the consigned goods
6Rate of tax on such goods
7Location of the job worker

Thus, we find that a manufacturer needs to generate e-Way bills while sending inputs for job work to any other state. In case the job worker is returning the inputs back to the manufacturer, then another e-Way bill needs to be generated. On the other hand, if the job worker is directly supplying the goods to the end customer, then the principal needs to show the job worker’s place as his additional workplace and generate an e-Way bill.

You can read more about eway bill on job work here – Complete Guidance of eway Bill on Job Work

Have questions? Feel free to ask them in the comments section.

 

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