Invoice to buyer and delivery at 2nd party for some processi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2013 Sir
We are registered manufacturer under central excise.

We need your guidence in below matter.

Goods manufactured at our end and we want to raise the invoice to our final customer but delivery at X party for some processing and this X party will dispatch these goods to our final customer after processing.

Inoivce to final Customer-----Delivery to X party for further processing-----X will dispatch these goods finally.

Can we do this and if yes what will be procedure and under which rule.

Please advise.

Rgds

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2013 Dear Expert
Please advise on above query.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Sir,
Please advise on above query.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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01 August 2024 Yes, you can dispatch goods to a third party for processing while raising an invoice to your final customer under certain conditions. This process is known as "job work" in the context of the Central Excise Rules and GST regime. Below, I will outline the procedure and relevant rules for handling such transactions.

### Under GST Regime (Post-July 2017):

#### Procedure:

1. **Issue Invoice to Final Customer:**
- Raise an invoice to the final customer with all the necessary details, including the GST applicable.

2. **Delivery Challan for Goods Sent to Job Worker (X Party):**
- Issue a delivery challan when dispatching goods to the job worker (X party) for processing. This challan should include details of the goods being sent for processing.
- The delivery challan should be in triplicate:
- **Original** for the consignee (X party).
- **Duplicate** for the transporter.
- **Triplicate** for the consignor (your record).

3. **Details on Delivery Challan:**
- Name, address, and GSTIN of the consignor and consignee.
- Description, quantity, value, and HSN code of the goods.
- Date and number of the delivery challan.
- A reference to the invoice number against which goods are being sent.

4. **Job Worker Dispatches Goods to Final Customer:**
- After processing, the job worker (X party) will dispatch the goods directly to the final customer.
- The job worker should issue a delivery challan referencing the initial delivery challan and your invoice number.

5. **Form ITC-04:**
- As a principal manufacturer, you must file Form ITC-04 on a quarterly basis, detailing the goods sent for job work and received back, including goods sent directly to customers.

#### Legal Provisions:

- **Section 143 of the CGST Act:** Pertains to sending goods for job work and conditions thereof.
- **Rule 45 of the CGST Rules:** Deals with the procedure for sending goods for job work, including the use of delivery challans.

### Under Central Excise Regime (Pre-GST):

#### Procedure:

1. **Invoice to Final Customer:**
- Raise an excise invoice to the final customer with all relevant details.

2. **Job Work Challan (Form Annexure II):**
- Send the goods to the job worker (X party) under cover of a job work challan (Annexure II), mentioning that goods are being sent for further processing.

3. **Rule 4(5)(a) of CENVAT Credit Rules, 2004:**
- Under this rule, you can send inputs or partially processed goods to a job worker without payment of duty, provided the processed goods are received back within 180 days or cleared directly from the job worker’s premises on payment of duty.

4. **Job Worker Dispatches Goods to Final Customer:**
- Once the job work is complete, the job worker can dispatch the goods directly to the final customer under your instructions. The job worker must issue an excise invoice referencing the initial job work challan.

#### Documentation:

- **Annexure II Challan:**
- Detailed description of the goods sent for job work, including quantity, value, and excise duty details.
- Reference to the initial invoice number.

- **Excise Invoice for Final Dispatch:**
- The job worker should issue an excise invoice with references to your initial invoice and the job work challan.

### Summary:

- **Under GST:**
- Issue a tax invoice to the final customer.
- Use delivery challans to move goods to the job worker and from the job worker to the final customer.
- File Form ITC-04 quarterly.

- **Under Central Excise:**
- Issue an excise invoice to the final customer.
- Use Annexure II challans to send goods for job work.
- Job worker issues an excise invoice for final dispatch.

### Important Notes:

- Ensure compliance with all documentation requirements to avoid legal and tax issues.
- Maintain clear records of all transactions and movements of goods for audit purposes.
- Consult with a tax professional or legal advisor to ensure all steps are correctly followed as per the latest applicable regulations.

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