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

Delivery challan for job work must omit taxable value and GST; invoice should state only job work service charges.
When goods are sent to a job worker the delivery challan should not show taxable value or GST but only the book value with tax Nil and the movement reported in Form ITC 04. The job worker must issue a tax invoice for the job work service charging only the job work consideration and using the service HSN; the value of the principal's goods should not be taxed on that invoice, though e way bill or transport documentation may reference goods HSN.