Valuation for Delivery Challan for Goods returned after doing Jobwork, Goods and Services Tax - GST

[Ashish Gupta]

Material is received from a Principal Manufacturer by delivery challan in kg where the rate is say ₹ 50/kg. Jobwork is done on the same and is returned by delivery challan by the jobworker to the Principal Manufacturer. The value addition is say 7.5/kg by the jobworker. What should be the rate mentioned on the delivery challan Rs. 50 or ₹ 57.5 ?

The ewaybill requires value of goods. Raw material rate and processed goods rate are going to be different. Kindly enlighten on this issue with reasoning.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

While the raw materials are forwarded the delivery challan should contain the value of raw material. On completion of the job work the products will be returned. The cost of job work will have to be added to the cost of raw material. Therefore the delivery challan forwarded by the job worker will contain the value of the goods done by the job worker. Therefore differences will be there.

[Manoj Agarwal]

The value of goods sent TO Job Worker is the value of raw material @ ₹ 50 and value of goods (processed) sent back BY Job Worker to Manufacturer is the value of processed goods @ ₹ 57.50. Obviously, the processed goods returned shall have higher value to the extent of value addition by job worker.