Query on ITC-04, Delivery Challan, and Job Work Invoice under GST

[Raghav Mehra]

Case:

I am sending goods to a job worker and issuing a delivery challan. The job worker is then issuing me a tax invoice.

Issue 1:

Currently, I am also mentioning the taxable value, GST rate, and amount in the delivery challan.

• Is this correct?

• My understanding is that by mentioning taxable value and GST, it may be considered a supply.

• Ideally, it should only show the book value, with GST as Rs. 0, and the same will be reported in Form ITC-04.

Issue 2:

The job worker is issuing me a tax invoice as:

“Invoice for supply of service (Under Rule 7 of GST)”

In this invoice, they are mentioning the material description on which the job work is done, calculating job work charges + GST accordingly, and also showing the goods HSN.

My understanding is that only the job work charges should be mentioned in the invoice, with the service HSN (not goods HSN).

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Request:

Please confirm if my understanding in both issues is correct.

Thanks in advance.

AI Summary

Goods sent to job worker non-taxable; delivery challan shows nil GST, report movement in ITC-04; job worker invoices Rule 7 When goods are sent to a job worker it is not a taxable supply, so the delivery challan should not show taxable value or GST-only the book value with GST as nil and the movement reported in Form ITC-04. The job worker, supplying job-work service, must issue a tax invoice under Rule 7 charging GST only on the job-work service; the invoice should state job-work charges and the service HSN (goods HSN may be referenced for description but not used to tax the principal's goods).