Compliance requirements for Eway Bill by Manufacturers

One of the main gainers from implementing GST was the manufacturing sector. The lead time for the transit of products into and out of states has been shortened by removing checkpoints at state borders. This enhanced the productivity of Manufacturers. The factories of manufacturing enterprises are often concentrated in a few places, whereas the branch and field offices are dispersed throughout the country. Additionally, some businesses employ Job Workers for some or all of the manufacturing procedures.

With the implementation of the E-way Bill, it is anticipated that many operational and regulatory barriers will be removed, resulting in a transparent and frictionless flow of commodities both within and between states. The Eway Bill shortens the time currently wasted at state borders while certifying the documentation related to the transit of interstate goods.

Each state formerly had its own declaration forms, waybills, and permissions, which hindered firms from expanding outside of the home states. Eway bill will bring ease and standardisation.

What is Job work?

Job work is a term used for someone other than the manufacturer who has contributed to the manufacturing procedures. Following are the stages in manufacturing where a job worker can contribute: 

1. The initial stage of processing raw materials

2. Processing semi-finished goods

3. Packaging finished goods

4. Assembling goods

5. Any additional procedure to help the Manufacturer produce the finished goods

Inputs sent by the Principal to a Job worker or vice-versa.

If the principal is located in a different state and is transferring products to a job worker who is also located in a different state, the principal is required to generate an e-way bill. Since the threshold restriction of Rs. 50,000 does not apply in this case, the principal must produce the e-way bill even if the value of the products sent to the job worker does not exceed Rs. 50,000.

Inputs that a principal receives upon the completion of the work

After a job worker finishes the goods, the principal may either accept the finished goods back or request that the job worker deliver the finished goods straight to the consumers. If the job worker is already registered on the e-way bill portal, the job worker will generate the e-way bill for the transportation of goods; otherwise, the respective principal will need to generate the e-way bill.

Finished products sent by the job worker directly to the customer

When products are delivered to customers directly from a job worker's place of business, it is necessary that:

1. The principal must either identify the job worker's location as his additional place of business 

2. The job worker must be registered under section 25.

In this instance, if the employee is registered on the portal, they would be required to submit an E-way bill by the principal.

What documents are required before sending the goods to a Job worker?

There is no need to send a tax invoice if the goods are delivered to a job worker. For these goods, a delivery challan (DC) must be provided. The DC would include the following information:

1. Number and date of the delivery challan.

2. Name, GSTIN, and address of the consignor and the job worker. If the consignor and the job worker are registered under GST then the GSTIN must be mentioned. 

3. HSN code and the description of the goods.

4. Quantities of the goods supplied.

5. Value of the goods including taxes.

6. Rate and amount of the tax.

7. Place of supply.

8. Signature.

Supply of Liquid Gas

An e-way bill must be generated for the supply of liquid gas when the quantity transported from the suppliers location is unknown. Additionally, a delivery challan must be supplied by the provider and carried by the transporter. 

Supply on basis of approval

According to a government circular, approved goods may be transported from a registered supplier's place of business to any other location within or beyond the state with a DC (delivery challan) and, where needed, an Eway bill. An invoice may also be provided upon delivery of the approved goods. When the supply is fructified, the person could carry his invoice book and issue an invoice.

Transfers of Stock and Branches

According to the Eway bill regulations, if the value of the consignment exceeds INR 50,000, the manufacturer (supplier) is required to produce the e-way bill for stock or branch transfer.

Sub-user Facility

For every shipment with a value greater than Rs. 50,000, an e-way bill must be generated. Numerous manufacturers operate from multiple locations, many of which have branch offices. It could be complicated to generate the e-way bill with a single login from multiple locations.

The sub-users concept is presented as a solution to this problem. A sub-user could enter in with the original login information and perform according to the permissions granted to them. A sub-user might, for example, be permitted to generate the e-way bill but prohibited from rejecting any e-way bill. The registered person must, however, provide their address correctly on the e-way bill. 

Conclusion 

 Pre-GST regulations called for a staggering quantity of paperwork, which needed a lot of human interaction, which increases the likelihood of corruption and tax evasion. The maker (supply), the transporter, and the recipient would all be on the same platform when the eWay Bill was implemented, and with their combined efforts, a single document would accompany all of the consignments and be accepted across the entire nation. Busy accounting software makes the generation of e-way bills seamless.