eWay Bill on Job Work – All Confusion Cleared!

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We are receiving queries regarding e-way bill generation in case of job work transactions. The clarification on job work transaction is as under.

Eway Bill Applicability on Job Work

For inter-state movement of goods, e-way bill is mandatory since 01.04.2018.
For intra-state movement of goods within state, e-way bill has been implemented w.e.f. 01.06.2018.

#1 When Goods Send by Registered Principal to Job Worker

The registered Principal/Owner will issues delivery challan (for job work) and mention value of goods send for job work. There is no need to mention GST rate and amount in the challan as sending goods for job work is not considered as supply.

Intra State Movement of Job Work: If the value of goods send for job work within state/intra-state exceeds Rs. 50,000/-, then the principal will issue e-way bill based on delivery challan.
He will issue e-way bill by selecting as follow:

Eway Bill Column Fill
Transaction TypeOutword
Sub TypeJob Work
Document TypeDelivery Challan
GST RateZero
GST AmountZero
As o GST is involved in the transaction.

Inter-State Movement of Goods: However, in case of inter-state job work, e-way bill is required to be issued for each transaction i.e. even in cases where value of goods is up to Rs. 50,000/-.

Eway Bill Column Fill
Transaction TypeOutword
Sub TypeJob Work
Document TypeDelivery Challan
GST RateZero
GST AmountZero
As o GST is involved in the transaction.

#2 When Job Worker Will Return The Goods After Job Work

When the job worker will return the goods after job work, it is advised that job worker will issue his delivery challan by giving reference of delivery challan of principal. In the delivery challan issued by the job worker, he will mention value of goods as value declared by principal plus job charges.

For example, if the value of goods send by principal is Rs. 1,00,000/- and job charges are Rs. 10,000/-, the job worker will mention value as Rs. 1,10,000/- by showing bifurcation in his delivery challan.

The job-worker will issue e-way bill based on delivery Challan. He will issue e-way bill by selecting:

Eway Bill Column Fill
Transaction TypeOutword
Sub TypeJob Work Return
Document TypeDelivery Challan
GST RateZero
GST AmountZero
As o GST is involved in the transaction.

The invoice for job charges plus GST can be send either with challan or a consolidated invoice can be issued afterwards. There is no need to issue e-way bill along with invoice of job charges as job work is a service and no e-way bill is required in case of services.

Recommended Read: How to Register for eWay Bill under GST? Step by Step Procedure

Summary

TransactionEway Bill
Inter-State Movement of Job Work (Value Even Below Rs.50,000/-)Eway Bill is Mandatory
Intra State/With-in Statement Movement of Job Work (Value Below or Equal to Rs.50,000/-)Eway Bill is Optional

#3 Eway Bill When Job Worker is Unregistered

Where the job worker is unregistered, in that case, job worker will issue delivery challan and e- way can be generated by principal based on details of delivery challan of job worker.
The principal will issue e-way bill by selecting

Eway Bill Column Fill
Transaction TypeOutword
Sub TypeJob Work Return
Document TypeDelivery Challan
GST RateZero
GST AmountZero
As o GST is involved in the transaction.
  • As no GST is involved in the transaction. This e-way bill will be sent to the transporter for bringing back the goods after job work.
  • In case of delivery of goods from the premises of job worker on tax invoice by the principal, the e- way bill will be generated by the principal.
  • The new columns of “Bill From” and “Dispatch From” has been created in e-way bill. In the column of “Bill From” the principal will fill name, GSTIN and State of seller. In the column of “Dispatch From”, the principal will fill “Name and Address of Job Worker” in address column along with PIN and State of job worker.
  • Provided also that where goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment.

Recently Asked Questions for Eway Bill on Job Work

Question: Intra State Movement of Goods/Within State Movement of Goods for Job work – Value is below Rs.50,000/- Is an eway bill applicable?

Answer: No eway bill is required for the value of Rs.50,000 for intra state movement of goods. If the movement of goods is inter state then eway bill is required even the value of goods is below Rs.50,000.

Question: What should be the Value of Goods in Eway Bill When Goods Send by Job Worker Back to Principal?

The job worker is required to generate eway bill with the same value as mentioned in the eway bill generated by principal. If it is zero then it will be zero. If it has value then you have to enter the same value.
The job worker should not add the service charges in the eway bill.
The job worker should send the invoice copy of his service charges along with delivery challan received from the principal.

Question: What will be the HSN Code When Sending Back The Goods by Job Worker to Principal?

Answer: If the final product changed its shape or nature after completion of job work then it may be different HSN code. So Job worker will mention new HSN code in the eWay bill not old HSN code as mentioned by the principal.

Questions: How GSTR-1 will is auto populated in case of job work. In case of job work only services charges received by job workers. How will GSTR-1 will be reconciled?

Answer: In case where goods are transported by job worker, the e-way bill will be generated on the basis of Delivery Challan not on the basis of tax invoice issued by job worker for job work charges. As we understand that the value of goods moved on the basis of delivery challan is not to be reported in GSTR-1 and neither there is mention of Tax Invoice issued by job worker for job work charges in E-way bill, no data would be auto populated in the GSTR-1 of the job worker.

Question: Whether Job worker will be liable to issue E-way bill along with goods sent after job work. Whereas job worker is sending goods along with his tax invoice of Jobwork charges only both in case of Inter-state and Intra-state.

Ans: Yes, Job worker will be liable to issue E-way Bill with respect to the goods sent after completion of his job work. Such goods have to be delivered on the basis of Delivery challan. These cannot be moved merely on the basis of job work invoice as such invoice covered only job work charges not the value of goods.

Questions: How eWay bill be generated when goods not send from the premises of principal to job worker?

Where goods are directly sent from the premises of supplier to job worker without receiving goods in the premise of principal, since e-way bill will be issued by supplier by mentioning “Bill to —- Principal” and “Ship to —– Job Worker”, there is no need to issue e-way bill at the time of issuance of delivery challan by the principal. However, principal will mention on the delivery challan that “Goods are Directly Delivered from the Supplier vide Invoice No. __________ dated ____________”.

Other Recommended Material to Read

eHandbook on Job work by ICAI – Download Here

 

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8 thoughts on “eWay Bill on Job Work – All Confusion Cleared!

  1. HELLO SIR
    SIR, MY QUERY IS: IF THE BUYER TAKEN THE MATERIAL BY MOTORCYCLE AND HIS PERSONAL CAR THEN EWAY IS MUST WHEN INVOICE VALUE IS MORE THEN 50000.

  2. We are principal company and sending goods directly from job work Factory to our Buyer. My question is what value we should mention in e way bill ?
    We have supplied 5 different commodity to Job work and all are utilized and generated into one item and we are sending to Buyer directly. Job work will prepare all 5 item in his delivery challan good returns to us . So In e way bill 5 item to mention or finished goods item, because goods r delivered directly from job work site.

    • Hello Ravinder Singh Chandok, As you are principal company and sending goods after job work to the buyer. You should mention only finished good item name and HSN Code. The value of the goods will be of invoice value. Feel free to ask if you have any further query! We will clear all your confusion.

  3. IF THE MATERIAL IS IN INTRA STATE AND THE JOB WORKER IS ALSO IN INTRA STATE . SO HOW TO MAKE EWAY BILL IN THIS SITTUATION

    • Hello Dhiraj, If the goods are moving for job work instr state for the value less than Rs.50,000 then you don’t need to generate eway bill.

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