When a principal sends goods to a job worker in another state, an e-way bill is required whatever the value; the principal or a registered job worker generates it. For intra-state job work and for goods returned by the job worker, the general ₹50,000 consignment-value rule applies. The movement document is a delivery challan under Rule 55, with sub-type Job Work.
Manufacturers rarely do every process under one roof. Plating, machining, dyeing, stitching or packing are often sent out to a job worker, and the goods come back afterwards. Each leg of that journey is a movement of goods, and the e-way bill rules treat job work differently from an ordinary sale — notably by removing the ₹50,000 limit for inter-state movements. This guide explains what applies to each leg and how to fill the e-way bill correctly.
For the general rules, see what is an e-way bill and e-way bill limit and rules.
What is job work under GST?
Section 2(68) of the CGST Act defines job work as any treatment or process undertaken by a person on goods belonging to another registered person. The owner is called the principal; the person processing is the job worker.
Section 143 lets a registered principal send inputs and capital goods to a job worker without paying tax, under a delivery challan, provided they come back within:
| Goods | Return within |
|---|---|
| Inputs | 1 year |
| Capital goods (other than moulds, dies, jigs, fixtures, tools) | 3 years |
If they are not returned (or supplied from the job worker's premises) in time, the original dispatch is deemed a supply on the date it was sent.
When is an e-way bill required for job work?
The second proviso to Rule 138(1) of the CGST Rules says that where goods are sent by a principal located in one state or union territory to a job worker in another, the e-way bill shall be generated by the principal or the registered job worker, irrespective of the value of the consignment. The official e-way bill FAQ confirms that goods for job-work purposes in specified circumstances need an e-way bill even below ₹50,000.
| Leg | E-way bill needed? |
|---|---|
| Principal → job worker, different states | Yes, at any value |
| Principal → job worker, same state | Only if consignment value exceeds ₹50,000 (or the state threshold) |
| Job worker → principal (return) | Only if value exceeds ₹50,000 (general rule) |
| Job worker → another job worker | Only if value exceeds ₹50,000 |
| Job worker → customer, on principal's invoice | Only if value exceeds ₹50,000 |
Who generates the e-way bill for job work?
- Principal to job worker: the principal, as the person causing the movement. A registered job worker may generate it instead.
- Job worker back to principal: the job worker if registered; otherwise the principal can generate it.
- Job worker direct to a customer: the principal, because it is the principal's supply, using the job worker's premises as "Dispatch From".
An unregistered job worker cannot generate an e-way bill as a GSTIN holder, so in practice the principal handles all legs.
Which document supports the e-way bill?
Job-work dispatches are not sales, so there is no tax invoice. The supporting document is a delivery challan under Rule 55, which must be serially numbered and include the date, GSTINs and names of consignor and consignee, HSN, description, quantity, taxable value, place of supply and signature. Rule 55 requires it to be prepared in triplicate (original for the consignee, duplicate for the transporter, triplicate for the consignor).
For a fuller explanation of challans see delivery challan under GST.
How to fill the e-way bill for job work
- Log in to ewaybillgst.gov.in and choose e-Waybill → Generate New.
- Transaction type: Outward (when you are sending) or Inward (when you are receiving and generating).
- Sub-type: Job Work for goods sent to the job worker; Job Work Returns for goods coming back.
- Document type: Delivery Challan; enter the challan number and date.
- From / To: principal's GSTIN and address; job worker's GSTIN (or "URP" if unregistered) and address.
- Items: description, HSN, quantity, unit and value as per the challan. Tax rates can be shown as per the item, but no tax is collected on a job-work challan.
- Part B: vehicle number, or Transporter ID if a transporter will fill it.
- Submit and hand the challan plus e-way bill to the driver.
Field-by-field help is in Part A and Part B.
Worked example: inter-state job work with a small value
A Ludhiana bicycle-parts maker (Punjab) sends steel components to a powder-coating job worker in Baddi (Himachal Pradesh).
| Challan detail | Amount |
|---|---|
| Components (2,000 pcs × ₹18) | ₹36,000.00 |
| Tax charged on challan | Nil (job work, Section 143) |
| Challan value | ₹36,000.00 |
The value is well below ₹50,000, but because the job worker is in another state, an e-way bill is required. The principal generates it with sub-type "Job Work" against the delivery challan. Ludhiana to Baddi is roughly 150 km, so validity is 1 day.
Return leg: the job worker returns the coated components with its own challan. The job worker charges a processing fee, say ₹8,000 + 18% GST = ₹9,440, on a separate tax invoice for the service. The goods' value on the return challan is ₹36,000 (the principal's goods). Since the general ₹50,000 rule applies to the return movement and the value is below it, an e-way bill is not mandatory for the return under the central rule — though many businesses generate one anyway to keep the trail complete.
Variation: same-state job work
If the job worker were in Jalandhar (also Punjab) and the challan value were ₹36,000, no e-way bill would be needed under the general rule, subject to Punjab's intra-state notification. At ₹65,000 one would be needed.
Job worker supplying directly to the customer
Principals often ask the job worker to ship finished goods straight to the buyer. Then:
- The principal issues a tax invoice to the buyer, charging GST.
- The e-way bill uses Bill From = principal and Dispatch From = job worker's address.
- The normal ₹50,000 rule applies.
Example: finished goods worth ₹80,000 + IGST 18% (₹14,400) = ₹94,400 dispatched from the job worker in Baddi to a dealer in Delhi need an e-way bill generated by the principal.
What about ITC-04 and record keeping?
The principal reports goods sent to and received from job workers in Form GST ITC-04. The challan numbers and values in ITC-04 should match those on the e-way bills. Keeping a register linking challan number → e-way bill number → return challan makes this reconciliation straightforward, and helps show that goods came back within the one-year or three-year limit.
Handicraft goods and other value-independent cases
Job work is one of two situations where the ₹50,000 limit does not apply. The other is inter-state movement of notified handicraft goods by a person exempted from GST registration, which also needs an e-way bill irrespective of value. If you are a principal using artisans as job workers for handicraft items, check whether either proviso applies to each leg.
A quick decision sequence for job-work dispatches
- Is the job worker in another state? If yes, generate an e-way bill whatever the value.
- Same state? Calculate the challan value and compare it with ₹50,000 or the state's own threshold.
- Is the job worker registered? If not, the principal generates all e-way bills.
- Is the job worker shipping to a customer? Then it is the principal's supply: tax invoice plus e-way bill with "Dispatch From" set to the job worker.
- Is it a return? Apply the general limit and use "Job Work Returns".
- Record the e-way bill number against the challan for ITC-04.
Worked example 2: high-value same-state job work
A Tiruppur garment exporter sends cut fabric worth ₹1,20,000 to a stitching unit in Erode, both in Tamil Nadu. The movement is intra-state, so the ₹50,000 rule (subject to Tamil Nadu's notification) applies, and at ₹1,20,000 an e-way bill is needed. The exporter issues a delivery challan for ₹1,20,000 with no tax, selects "Job Work", and enters the hired tempo's number. Tiruppur to Erode is about 55 km, so validity is 1 day.
The stitching unit later invoices its stitching charges — for example ₹30,000 + 5% GST = ₹31,500, assuming the 5% rate applies to the textile job-work service in your case (confirm the current rate for the specific service). The return of stitched garments valued at ₹1,20,000 moves under the job worker's challan with "Job Work Returns", and since that exceeds ₹50,000, an e-way bill is needed for the return too.
Common mistakes with job-work e-way bills
- Skipping the e-way bill for small inter-state lots. The ₹50,000 limit does not apply to principal-to-job-worker inter-state movement.
- Using a tax invoice instead of a challan for goods going to the job worker. That implies a sale and creates a tax liability.
- Wrong sub-type. Choosing "Supply" instead of "Job Work" makes the record inconsistent with the challan and ITC-04.
- Losing track of returns. Goods not returned within the time limit become a deemed supply with tax and interest.
- Missing the job worker's address in the "Dispatch From" field when the job worker ships to a customer.
- Ignoring state rules. For intra-state job work, check your state's threshold and any specific conditions.
If something goes wrong in transit, the penalties are the same as for any consignment — see e-way bill penalty.
Billing Software by Betterwork can raise a delivery challan and generate its e-way bill from the same record, which keeps job-work challan numbers and e-way bills tied together for ITC-04.
Key takeaways
- Inter-state movement from principal to job worker needs an e-way bill at any value, generated by the principal or a registered job worker.
- Other job-work legs follow the general ₹50,000 rule (or state threshold).
- Use a Rule 55 delivery challan, not a tax invoice, and choose the "Job Work" or "Job Work Returns" sub-type.
- When the job worker ships to a customer, the principal invoices and generates the e-way bill with the job worker as "Dispatch From".
- Match challans and e-way bills to ITC-04, and get goods back within 1 year (inputs) or 3 years (capital goods).
This guide is general information, not tax advice. Rules last checked on 20 October 2026; confirm with your tax professional for your situation.