Job Work from URD

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This discussion clarifies the correct procedure for manufacturers in Delhi engaging job workers who are unregistered. The recommended process involves issuing a delivery challan with an e-way bill to the job worker's premises. Upon completion, the manufacturer creates a new e-way bill, and the job worker endorses the challan, attaching their invoice for job work charges. Experts confirm this process is proper and that Reverse Charge Mechanism (RCM) is not applicable in this scenario, as the job work charges are treated as part of the manufacturing cost subject to GST.

Rakesh Sharma

Rakesh Sharma (Querist)

28 August 2021 Respected experts, we are manufacturer & want to get service from Job worker who is Unregistered within state Delhi. We are taking the below steps to process this working :-
1) Issue delivery challan along with Eway bill for Job Worker premises.
2) After completion of Job work, we will make E-way bill & Job work will endorse the Delivery challan and will attach his Job work charges invoice. i.e. of Rs. 25,000/-

Is the above process is proper? Also, Should we pay RCM on the invoice of URD job worker invoice?

Humble request to experts, please guide me, its very urgent.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 August 2021 Yes, the above process is proper.
RCM not applicable in this case.
Such job work will be part of your manufacturing cost on which you will be paying GST.

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