Jobwork Outward Delivery Challan
Outward Delivery Challan is a document to inform the Sales authorities on what items have been transported and to whom etc. Sometime it can be combined with Invoice too. Post GST, its essential to send the e-Way bill along with the Delivery Challan
What is Jobwork?
Most of the manufacturing companies outsource their work to Subcontractors / Jobworker for the work to complete. These subcontractors or Jobworkers receive the material from “Principle Manufacturers” and process and send it back to them. Here the material is still owned by the Principle and Jobworker can charge his service fees to him. The basic business needs is to identify what items are sent and what exactly the work to be done. AcTouch.com helps you to manage the stocks that are sent to Subcontractor and track what materials have come back etc.
From GST perspective.
Search GST Rates / HSN Codes / SAN Codes at https://cbec-gst.gov.in/gst-goods-services-rates.html
What is the time limit for the Principle Manufacture to receive his goods back sent for Jobwork?
GST has come with basic rules for the Manufacturer to receive the materials within a period else it is to be treated as Sales.
- Normal input goods / Raw materials – 1 Year from effective date of despatch
- Capital goods – 3 Year from effective date of despatch
In case, these materials have not received back in the specified time, then GST expects the manufacturer to issue an invoice as this is treated as Sales.
What happens to the machinery and tools sent to Job worker to execute the work?
Many manufacturers send the Jigs and fixtures or Moulds & Dies to execute the work at the Jobworker. The assumption here is these are sent with a returnable DC and these are not going to change their form. So GST doesn’t consider this for any taxes etc and no timeline is applied.
Delivery Challan contents
Every items that’s sent to Job worker should contain the details of items sent, the despatch time and Quantity time. It’s a good practice to mention what for these are sent. It can also contain delivery vehicle details. This document is issued by Manufacturer and these are part of the GSTR returns too. Please note that Government of India has not specifically said about the format etc. but they are clear with the minimum data it should contain. So you may add more details, if required. The challan issued must include the following particulars:
- Date and number of the delivery challan
- Name, address and GSTIN of the consigner and consignee
- HSN code, description and quantity of goods
- Taxable value, tax rate, tax amount- CGST, SGST, IGST, UTGST separately
- Place of supply and signature
Format of Delivery Challan under GST. Click here to download Excel format
AcTouch.com helps you to create a Jobwork and manage the Business too.
You can use this menu to send the Finished goods to Customer post the work is done. This helps to track the Finished Goods sent to Customer and on which date etc. Now with AcTouch.com, you make a “Jobwork Outward delivery challan” easily.
In the business, Customer will send his raw materials to his subcontractor to do the activities thats not done within his factory. It could be for Assembly, Conversion of RM to Semi Finished Goods etc. So he will send a “Job work outward delivery challan” listing the items that are sent to him. While making an Jobwork Outward Delivery Challan, we choose an Inward Delivery Challan against which the FG is sent. Screen is evident with details to be entered and managed.
Please check the video on Jobwork for a Customer.