We are running a ready made garments manufacturing job work unit and we get the order form A company get all raw materials from them for stitching to pack and returned to A company, while returning the ready goods we are using e way bill and charging our job work cost Likes Rs 100/- or 120/-,but that Goods MRP should be Rs 1000 and above, in this case which cost I need to mentioned in the e way bill, if I want to mention MRP cost why should I want charge MRP cost.
please get back to me with the sections please, because vigilance department had hold my goods and ask us to pay penalty
please advise better suggestions
First of all ,in term of Section 143 of CGST Act Inputs (goods) send by principal to Job worker for job work is not an Supply in GST.
On co-Joint reading of section 143(1)(a) with rule 45 & clarification issued vide circular 38/12/2018 , The Job worker should send one copy of challan received by him from the principal while returning the goods to principal after carrying out the job work but as Assume that when principal is sending Raw material to you might be delivered by issuing various challan , so in this case the Principal challan cannot be used to send finished material (Shirt ) by Job worker , but an fresh challan is issue for the same to send back to principal.
Now let's come to section of Value need to be mentioned on challan by Job worker , but before it ,we shall refer the 3rd proviso of Rule 138 , when the Principal & Non-work are in two different states then Eway is mandatory irrespective of value of consignment.
And as per Rule 138(1) Eway need to generate when value exceeds 50k & being transported via Motorised conveyance .
Now if read the provision prescribed for generating Eway , even though the goods send by jobworker to principal is not supply but an cost of material computed as per the material reced from principal.
Let's understand it by example :
Principal Send material on challan :
Cloth : Rs. 200/-
Button & Stitch material : Rs. 50/-
Total 250/-
** add jobwork cost 50/-
Now in above the Goods either can send to principal by quoting value Rs.250/- or can be added job work cost to it.
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