Urgent:- job work issue

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This query is : Resolved

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This discussion addresses concerns about job work invoicing and e-way bills under GST. The principal is asking the job worker to issue an e-way bill for the total value, including job work charges, which is considered a correct practice under GST law. The principal will handle the GST payment on the job work.

Nikhil Sharma

Nikhil Sharma (Querist)

26 March 2021 Dear Experts,
We are job worker of leser work on soles, following are the issues.

1) principal send the goods let say Rs. 100000/- with eway bill, on this part our job work cost is say 10000/- now principal has asked us to make the eway bill of Value Rs. 110000/- inclusive work job charge. They said after processing the cost of soles has been gained. Hence eway bill will made of Rs. 110000/-

Also they are also asking for separate tax invoice of job work.

Pls clarify is it correct practice......

Thanks
ASAp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 March 2021 Yes, it's the right practice if you are registered under GST.
If not registered under GST no need to issue tax invoice.
GST on your job will be paid by principal.

Nikhil Sharma

Nikhil Sharma (Querist)

29 March 2021 Respected Sir,
Basically asking for tax invoice of job work is not issue.. whereas the issues is material comes with the eway bill of Rs. 1 Lakh but after processing thereon principal asking to make delivery challan & eway bill thereof including job work charges i.e. 1 Lakh material cost + 10k job work charges total 110000/-

Pls clarify is it fair practice in accordance with the GSt law

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 March 2021 Yes it's fair practice allowed by GST law.
Do as per principal's request he is doing it as per GST provisions. He will pay GST on your job work on consolidated basis.

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