Value in delivery challan for job work

[DS Pal]

Dear Experts,

One of our customer send goods to us for job work amounting to INR 2 Lakhs plus 12% GST. After job work, we are now sending goods to the Principal/Customer. Our job work charges is INR 65K plus 18% GST for which we have to raise separate tax invoice.

Our query is:-

What value of goods to be placed in delivery challan and e-way bill thereafter while returning goods to the principal?

Whether its 2 Lakhs plus GST or 2.65 Lakhs plus GST (i.e. including job work charges) or any other amount?

Pls advise the correct treatment along with any reference of law.

Thank You

[DS Pal]

In case of job worker assembled the raw material sent by Principal, and while making delivery challan to return the goods to the principal, what goods to be mentioned...its raw material or Assembled Goods?

[KASTURI SETHI]

Assembled goods. Raw material lost its identity in finished goods or semi-finished goods.

[Sadanand Bulbule]

When returning goods to the principal after job work, you have to mention only the original value of goods (?2,00,000) in the delivery challan & e-way bill. Your job work charges (?65,000 + GST @ 18%) should be invoiced separately. They are not to be added in the value of goods in the challan/e-way bill.

[Shilpi Jain]

As per rule 55 of the CGST rules, DC has to be issued in case of not goods supply. In the present case while JW sends goods, its not a supply of goods so DC to be issued.

In DC, value of goods that are transported is to be mentioned. In your case, mention the actual value of the goods, which you can consider as market value, if not available then value mentioned by principal + you JW charges.

Also note that there is a circular on job work which mentions that, if you are sending the entire goods sent by principal in one DC as one lot, you can just endorse the principals DC and send along with another e-way bill. - Circular No.38/12/2018

 

[KASTURI SETHI]

Job-charges should also include the cost of raw-material (owned by the job-worker), used by the job-worker for the purpose of payment of GST.

[Sadanand Bulbule]

Obviously Sirji. 

AI Summary

Delivery challan valuation: record the goods' value for return after job work; job-work charges invoiced separately. Delivery challan and e-way bill should show the value of the goods returned to the principal, not the separate job-work charges, with job-work fees invoiced separately; if goods have lost their original identity use the assembled goods' description and value, and where market value is unavailable the principal's declared value (or principal's value plus job-worker charges per one view) may be used; Rule 55 mandates a delivery challan for non-supply and a circular permits endorsing the principal's challan when returning the entire lot.