A job work is essentially the outsourcing of a portion of the manufacturing process to a third-party vendor/contractor. This means that a part of the manufactured goods are transported from the premises of the principal (the entity that assigns the task to the third-party) to that of the job worker (the entity who takes the task and is responsible for getting the job done. Often, such consignments have to cross state borders to reach the final destination. In such scenarios, the generation of an Eway bill is necessary.
There are four scenarios under which either of the concerned parties may be required to generate an Eway bill for job work. They are as follows.
The principal sending the goods to the job worker
The job worker directly sending the goods to the principal after completing the work
The job worker sending the inputs back to the principal after job completion
Finished goods directly being supplied to the end customer post job completion
Let us now take a look at these scenarios in detail and determine who is required to generate an eway bill in each of those cases.
If the outsourcer is sending the goods to a job worker located in a different state, the former will compulsorily have to generate the eway bill for job work as per the standard procedure. Even if the value of the goods is under ₹50,000, the outsourcer will need to generate an Eway bill for job work.
Once the task is completed by the job worker, the outsourcer tends to call back for the goods to their premises. Alternatively, they can ask the job worker to supply them directly to the end customers. If the job worker has an Eway Bill Portal ID, they will need to generate the eway bill to get them to the marketplace. If not, the outsourcer will need to generate the eway bill for job work.
When the finished goods are supplied directly from the premises of the job worker to the end-user, it is mandatory that:
The job worker must be registered under section 25 of the GST Act, or;
The outsourcer must declare that the place of the job worker is his alternative place of business.
In case the job workers have got themselves registered on the E Way Bill Portal, they must generate the eway bill for job work themselves. If not, the outsourcer must generate the e way bill for the job work.
In such a scenario, the supplier of the principal will have to generate an Eway bill for job work.
To do so, all you will have to do is follow the steps mentioned below:
Log on to the Eway bill portal with your registered user name and password.
Click on ‘Generate new Eway bill’.
Select your transaction type as ‘Job work’.
After that, you will be needed to provide your GST number, product description, delivery challan number, and other relevant information about your identity or the product to produce a job work e-way bill.
The following documents need to be furnished before sending goods for job work:
Date and delivery number of the challan
GSTIN, address, and name of the consignor and the consignee. GSTIN will need to be provided if any or both the parties are registered
Harmonised System of Nomenclature (HSN) code of the goods
Quantity of the supplied goods
Taxable value of such goods
Applicable GST rate and the payable GST amount
Place of supply
Signature of the issuer
Documents to be Carried While Transporting Goods for Job Work
The following documents must be on the transporter while transporting goods for job work:
Job work eway bill copy
Invoice copy in case the goods are being sent by the vendor of the principal to the job worker