How to Generate E-Waybill for Job Work
"Job work" means when businesses in manufacturing, textiles, jewelry, pharmaceuticals, engineering, and food processing often send goods outside their business place for activities such as stitching, polishing, painting, packaging, testing, or assembly.
Why Generate an E-Way Bill for Job Work Under GST
When goods are sent for job work, it is a service, not a sale. So, the ownership remains with the original supplier—the principal.
Understanding job work helps businesses generate a delivery challan and comply with e-way bill requirements for job work.
Examples of Job Work
- A garment manufacturer sends fabric to a stitching unit.
- A jewellery business sends gold ornaments for polishing.
- An automobile manufacturer sends components for painting or assembly.
- A pharmaceutical company sends products for packaging and labelling.
- A furniture manufacturer sends wooden parts for finishing and varnishing.
In all these cases, the goods are not being sold to the job worker. They are only being moved for further processing.
Is an E-Way Bill Required for Job Work?
Yes, an e-way bill is needed when goods are transported for job work.
The rules differ slightly from regular supply transactions.
| Type of Movement | E-Way Bill Requirement |
|---|---|
| Intra-state movement for job work | Required if the consignment value exceeds ₹50,000, subject to state-specific rules |
| Inter-state movement for job work | Mandatory irrespective of the consignment value |
Important: For inter-state movement of goods to or from a job worker, an e-way bill must be generated even if the value of the goods is less than ₹50,000.
This requirement is specified under Rule 138 of the CGST Rules.
E-Way Bill Requirement for Job Work Under Rule 138
As per Rule 138 of the CGST Rules, an e-way bill is mandatory for the inter-state movement of goods sent for job work, regardless of the consignment value.
The e-way bill can be generated by either the principal or the registered job worker. Since the goods are being sent for processing and not for sale, they must be accompanied by a delivery challan instead of a tax invoice.
Important: The ₹50,000 threshold does not apply to inter-state job work transactions. Even if the goods are worth less than ₹50,000, an e-way bill is still required.
Who Should Generate the E-Way Bill?
The e-way bill can be generated by:
- The principal
- The registered job worker
- The transporter, if authorised by the principal or job worker**
If an unregistered principal sends goods to a registered job worker, the registered job worker is responsible for generating the e-way bill.
Which Document Should Be Used for Job Work?
This is where many businesses make mistakes. Since there is no sale involved in a job work transaction, goods must move under a delivery challan, not a tax invoice.
The delivery challan should include:
- Challan number and date
- Name, address, and GSTIN of the principal and job worker
- Description of goods
- HSN code
- Quantity and value of goods
- Place of supply, if applicable
Details Required Before Generating the E-Way Bill for Job Work
Keep the following information ready:
- Delivery challan number and date
- GSTIN of the principal and job worker
- Product description and HSN code
- Quantity and value of goods
- Vehicle number or transporter ID
- Approximate distance between the dispatch and delivery locations.
Read more: How to convert a delivery challan into an e-waybill.
How to Generate an E-Way Bill for Job Work
- Step 1: Log In to the E-Way Bill Portal.
Visit the official e-way bill portal and log in using your credentials.
First-time users must complete one-time registration using their GSTIN.
-
Step 2: Select "Generate New".
From the dashboard, go to e-Way Bill → Generate New. -
Step 3: Enter Part A Details
Fill in the required information carefully.
Critical: Select "Job Work" as the sub-type. Choosing "Supply" instead may incorrectly classify the transaction as a sale.
- Step 4: Enter Part B Details
Provide transportation details, including:
Mode of transport.
Vehicle number.
Transporter ID and transporter document number, if applicable.
Approximate distance.
E-wayBill Part B must be completed before the goods begin their journey.
Step 5: Generate the E-Way Bill Number. Review the details and click Submit.
The portal will generate a unique 12-digit E-Way Bill Number (EBN) along with a QR code. Keep the e-way bill number available in physical or electronic form during transit.
| Field | Details to Enter |
|---|---|
| Transaction Type | Outward (sending goods) or Inward (receiving goods back) |
| Sub-Type | Job Work |
| Document Type | Delivery Challan |
| Document Number and Date | Delivery challan details |
| From | Principal's details |
| To | Job worker's details |
| Item Details | Description, HSN code, quantity, value, and applicable tax rate |
How to Generate an E-Way Bill for Return of Goods After Job Work
Once processing is complete, the goods may be returned to the principal.
For the return movement:
- Select Transaction Type: Inward
- Select Sub-Type: Job Work
- Use a delivery challan for the movement of goods
The remaining process is the same as generating an e-way bill for sending goods to the job worker.
Practical Examples
-
Example 1: Inter-State Job Work.
A manufacturer in Maharashtra sends machine components worth ₹20,000 to a job worker in Gujarat for coating.
Even though the consignment value is below ₹50,000, an e-way bill is mandatory because the goods are moving across state borders for job work. -
Example 2: Intra-State Job Work.
A textile business in Tamil Nadu sends fabric worth ₹35,000 to a stitching unit within the same state.
An e-way bill is generally not required because the consignment value is below ₹50,000. However, businesses should verify any state-specific requirements.
6 Top Job Work Mistakes Businesses Should Avoid
- Using a tax invoice instead of a delivery challan.
- Selecting Supply instead of Job Work as the e-way bill sub-type.
- Entering incorrect GSTIN details.
- Mentioning the wrong vehicle number.
- Forgetting to update Part B before dispatch.
- Assuming the ₹50,000 threshold applies to inter-state job work transactions.
These errors can lead to delays during transit, penalties, and unnecessary compliance issues.
Regular Supply vs. Job Work: Key Differences
| Particulars | Regular Supply | Job Work |
|---|---|---|
| Ownership of goods | Transfers to the buyer | Remains with the principal |
| Document required | Tax invoice | Delivery challan |
| Nature of transaction | Sale of goods | Processing of goods |
| E-way bill sub-type | Supply | Job Work |
| GST liability | On the value of goods | On job work charges only |
Conclusion
The biggest difference between a regular supply and job work is simple: the goods are moving for processing, not for sale.
Whenever goods are sent for job work:
- Use a delivery challan instead of a tax invoice.
- Select Sub-Type: Job Work while generating the e-way bill.
- Complete Part B before transportation begins.
- Inter-state job work requires an e-way bill.
By following these rules helps businesses stay GST-compliant and avoid issues during the movement of goods.
FAQ on Eway Bill Generation for Job Work
Is an e-way bill mandatory for inter-state job work below ₹50,000?
Yes, an e-way bill generation is important for inter-state movement of goods for job work, irrespective of the consignment value.
Can goods be sent for job work without an invoice?
Yes. Goods should be sent under a delivery challan because there is no transfer of ownership.
Who pays GST in a job work transaction?
GST is generally applicable on the job worker's processing charges, not on the movement of goods sent for job work.
Can a job worker generate the e-way bill?
Yes. A registered job worker can generate the e-way bill.