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Job work e way bill amounts to be maentioned at various stages of goods movement., Goods and Services Tax - GST

Issue Id: - 116532
Dated: 12-7-2020
By:- Rajat Bakliwal
Job work e way bill amounts to be maentioned at various stages of goods movement.

  • Contents

Suppose A is principal manufacturer who sends goods to B for job work.The value of goods as ascertained by A is ₹ 100000(which already incudes gst as he will come to cost of goods by including gst charges paid).Now A will send goods to be on a Delivery challan and a eway bill.Then gst to be taken on 1 lk in eway bill is to be zero as there is no supply and ownership of goods is not changing.???Now suppose when B does his job work cost comes to 90000.He will charge 90000 + (6% cgst, 6% same state) in his invoice i.e 100800 will be his total invoice value.Now when B is returning goods to A again , then what must be the amt in eway bill?

Option 1: 100000(cost out goods by A)+ 90000=190000 and gst in eway bill to be zero??

Option 2: 100000 plus 90000 plus 10800 gst amt.

Or gst need not be included in eway bill here.

Does B needs to mention the reference of original delivery challan given by A anywhere in his eway bill while sending back goods.

Can a gst registered job worker go and work for a job consignment on principals place.i.e of principal ( and take his own raw material also at principal's place ) and on completion of job ,issue a tax invoice of job work ti Principal?? Plz clearify all these points .I hope it will be helpful to many job workers.

Thanks in advance ..Rajat

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Posts / Replies

Showing Replies 1 to 15 of 17 Records

1 Dated: 13-7-2020
By:- Ganeshan Kalyani

Sir, in delivery challan the value of goods and GST is mentioned. This is not a supply. In e-way portal you can select as goods sent to job worker. The job worker does some process on the goods and send it back to the principal. In my view, the value of the goods can be kept same (assuming that the goods sent in one lot is received in one lot). This is because the law says that goods sent to job worker must be received back. So, while sending back the material the job worker must give reference of the original invoice. In ITC-04 the same is required to be furnished by the principal.

2 Dated: 13-7-2020
By:- Ganeshan Kalyani

My previous reply is toward the material sent and material received back. And, in respect of the job work charges there is no need of generating e-way bill. E-way bill is only for the movement of goods and not for service.

3 Dated: 13-7-2020

Dear Querist,

Query-wise reply is as follows:-

1. I fully agree with both replies of Sh.Ganeshan Kalyani Ji. Also go through sub- paras .(iii) and (v) of para no.8.4 Circular No.38/12/18-GST dated 26.3.18 as amended vide Circular No.88/07/2019-GST, dated 1-2-2019. These are appended below: Both circulars should be read in the whole.

(iii) Where the goods are returned to the principal by the job worker :

The job worker should send one copy of the challan received by him from the principal while returning the goods to the principal after carrying out the job work.

(v) Where goods are returned in piecemeal by the job worker :

In case the goods after carrying out the job work, are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker.

2. Can a gst registered job worker go and work for a job consignment on principals place.i.e of principal ( and take his own raw material also at principal's place ) and on completion of job ,issue a tax invoice of job work ti Principal?

Ans. NO. The job-worker cannot adopt such practice of doing the job-work in the premises of the principal (owner of goods). The job-worker cannot use his own material. Only nominal material can be used and not not main material.

4 Dated: 13-7-2020
By:- Rajat Bakliwal

Sir , if job work is relating to finishing(painting process) on wooden table tops, then can job worker use material of his own? And if worker uses his own material then will it not be job work.Where will this act then be classified into...contract manufacturing??

5 Dated: 13-7-2020
By:- Rajat Bakliwal

Also what if job work bill is above rs 50000, then also job worker does not have to issue eway bill for his invoice value..??

6 Dated: 13-7-2020

With reference to query at serial no.4, job-work means service with skilled labour.

Section 2(68) “job work” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly.

Service with material/goods is not pure service. Then it is called Work Contract Service. Job-work means you are concerned with pure service. However, Go through the following case law: (It is applicable even in GST, especially, keeping in view of the definition of job-work under Section 2(68) of CGST Act.


7 Dated: 13-7-2020
By:- Rajat Bakliwal

Kasturi sir , plz refer to my query 116009 on 12 feb 2020 (job work or contract manufacturing), where I asked if substancial input of own material is used by job worker in paint, texturing of wooden tops then will it be job work.. and u told that job worker can use his own material also.plz refer to that query and chk all answers provided there. I am confused now whether the activity is job work or work contract.Plz throw some light.

8 Dated: 13-7-2020

There are contradictory case laws on this issue. I There are two case Laws in your favour. If you want to go through the same I can post the same. Read the meaning of job work.Job worker can use his own material to some extent. Two case laws are totally in your favour.

9 Dated: 13-7-2020
By:- Prasanna Kumar

The issue of whether the value should be declared in the Delivery Challan used to remove goods for Job Work, has to be understood by reading Rule 55(1), Rule 138(1) along with Explanation -2, and Section 15 of the CGST ACT.

Rule 55(1) talks about the transportation of goods without issue of invoice for the purposes of :-

  1. supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known
  2. transportation of goods for job work
  3. transportation of goods for reasons other than by way of supply, or
  4. such other supplies as may be notified by the Board.

the consignor may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely;-

  1. date and number of the delivery challan;
  2. name and address and goods and service tax Identification number of the consignor, if registered;
  3. name and address and goods and services Tax Identification number or unique identity number of the consignee, if registered;
  4. HSN code and description of goods;
  5. quantity (provisional, where the exact quantity being supplied is not known)
  6. Taxable Value
  7. tax rate and tax amount where the transportation is for supply to the consignee
  8. place of supply, in case of inter-state movement; and
  9. signature.

By this reading one thing is clear, that for transportation of supplies to job worker, the delivery challan can be used and mentioning the taxable value is also required.

Now let's go to Rule 138 under Chapter XVI deals with E-way Rules. Rule 138(1) deals with information to be furnished prior to commencement of movement of goods and generation of e-way bill. It reads as follows:-

  1. (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees-

(i) in relation to a supply; or

(ii) for reasons other than supply;or

(iii) due to inward supply from an unregistered person,

shall, before commencement of such movement, furnish information relation to the said goods as specified in Part A of Form GST EWB -01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal;

In subsequent Paragraphs it is mentioned " provided also that the 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

Therefore, it is clear that in the case fo inter-state movement of goods for job working, e-way bill has to be generated irrespective of the value of the consignment.

Further in Explanation .2 to this Rule it stipulates that" for the purposes of this , the consignment value of goods shall be the value, determined in accordance with the provisions of Section 15, declared in an invoice, a bill of supply or a Delivery Challan, as the case may be, issued in respect of the said consignment and also includes the central tax, state or union territory tax, IGST and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

By reading this explanation , it becomes clearer that even in the Delivery Challan the value needs to be mentioned. Of course the valuation shall be done in accordance with Section 15 of the CGST Act.

Now lets go to Section 15. This section deals with the Value of taxable supply.

In sub-section (2) clause (b) it is stipulated the value of supply shall include ; -" any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; and;

sub-clause (c) "incidental expenses, including commission and packing , charged by supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of , or before delivery of goods or supply of services;.

Though these sub - clauses do not specify directly the value of job working charges should be included in the value of goods, it can be inferred by reading both the clauses together.

In view of the above, in my opinion, the supplier/principal shall mention the value of goods while transporting to job worker and while the job worker returning the goods after job work being done, he shall add his job work charges to the value mentioned in the delivery challan of the principal in principal's challan or delivery challan issued by the job worker himself.

In the instant case the principal has to mention ₹ 100000/- exclusive of CGST, SGST and IGST in the Delivery Challan and the job worker has to mention ₹ 190000 as his value in the Delivery Challan while returning the goods to principal.. No need to include GST in the taxable value in accordance with the Section 15.

Of course the panelists may differ with my view.

10 Dated: 14-7-2020

Dear Querist,

I am of the view that all aspects should be brought to the notice of querist. When law is ambiguous, we take the shelter of case laws. So it depends upon case to case. The following case laws are in the assessee's favour:-

2012 (284) E.L.T. 589 (Tri. - Del.) = 2013 (4) TMI 473 - CESTAT, NEW DELHI COMMISSIONER OF CUSTOMS & C. EX., BHOPAL Versus ABHINAV CHEMICALS

2012 (27) S.T.R. 379 (Tri. - Ahmd.) = 2012 (11) TMI 167 - CESTAT, AHMEDABAD SACHIN METAL COATS Versus COMMR. OF C. EX., CUS. & S.T., DAMAN/VAPI

11 Dated: 14-7-2020
By:- Prasanna Kumar

Mr.Kasthuri Sethi


I read your response to my reply. I am not giving my thoughts sir. The Rule 55(1), Rule 138(1) and Section 15 of the CGST Act are clear about what needs to be mentioned in the Delivery Challan while the goods are transported to Job work.

Even Job Work has been defined in Section 2(68), which states "job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "Job Worker" shall be construed accordingly".

I think the rules, section and the definition of job work are clear and there is no ambiguity as such sir. However, I still accept your views as stood in the erstwhile laws.


12 Dated: 14-7-2020

-Sh.Prasanna Kumar Ji,

Sir, I posted my reply to the cross query at serial no.7 dated 13.7.20 raised by the querist, Sh.Rajat Ji.. It was not reaction to your views. However, I fully agree with your views posted at serial no.9 dated 13.7.20. You have nicely interpreted, analyzed and explained.

With due regards,


13 Dated: 15-7-2020
By:- Rajat Bakliwal

Kasturi ji & Prassana ji, your efforts in trying to clearify my query are really appreciable. I understand that there is ambiguity in law, things r not clearly mentioned.Your posts were very informative and elaborate.Thnx sir.

14 Dated: 15-7-2020
By:- Rajat Bakliwal

Kasturi ji I read that work contract is on immovable assets like building, land where as in cases where goods of principal are movable,then it in most cases qualify as job work.

15 Dated: 15-7-2020

Dear Rajat Bakliwal Ji,

Yes, I agree with you 'work contract service' pertains to immovable property. This is defined under Section 2(119) of CGST Act.


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