Job work software for both sides of the challan

Two sides of the same challan

Job work has two parties, and ARUKZ ERP covers both:

• The principal owns the goods and sends them out for a process: plating, heat treatment, grinding, powder coating. A crankshaft maker in Coimbatore sending 2,000 shafts for induction hardening is the principal.
• The job worker receives the principal's goods, does the work, sends them back and bills for the work. The hardening shop that takes those 2,000 shafts is the job worker.

Many small factories are both: they send their own parts out for plating, and they machine parts for a bigger customer. Both sides live under Subcontracting (Job Work) in the same login.

If you send work out (principal)

Subcontract orders and receipts

A subcontract order records what you asked the job worker to do: the part, the operation, the quantity, the rate per unit and the expected delivery date. A receipt records what came back against it: quantity delivered, accepted, rejected and scrap, the job worker's challan number and the QC status.

The job-work challan

The challan is where stock and the law meet. Each challan has a serial number (up to 16 characters, as rule 55 allows), the job worker as a contact, the warehouse the goods leave from, and one line per item: the quantity, its value, its GST rate and its type.

These are the limits in section 143 of the CGST Act. When you press Send goods, ARUKZ ERP:

1. Moves the stock out of the warehouse into a location named after the job worker, such as "Job work: Sri Murugan Heat Treaters". The goods are still yours, so they stay in your stock value, but they no longer count as available in the factory.
2. Works out the return date for each line from the table above.
3. Warns you if an e-way bill is probably needed: always when the job worker is in another State or UT (rule 138), and within a State when the consignment is over ₹50,000 including tax. You generate the e-way bill on the portal and type its number on the challan.

Print challan makes the PDF: both GSTINs, HSN, quantity, taxable value, and the place of supply when the job worker is in another State. It prints three copies with rate and tax as the safe default. Rule 55 asks for those "where the transportation is for supply"; ask your CA whether your job-work challans need them.

When the goods come back

Use Record return on the challan for each lot that comes back:

• Quantity back, and quantity lost or wasted in the process.
• The job worker's own challan number and the work done.
• If the goods came back through a different job worker than the one you sent them to, choose that job worker. This decides which ITC-04 table the row goes in.
• If the challan is tied to a work order, the good output counts towards it, and the work order finishes when it reaches the planned quantity. Anything entered as rejected raises a quality rejection.

If the job worker sells the finished goods straight from their premises on your behalf, record it with Sold from job worker and your invoice number. Those goods leave the job worker's location and never come back to your stock.

A challan sent by mistake can be cancelled while nothing has come back on it; the goods return to stock.

What is out, and for how long

Goods at job workers lists every line still out, soonest return date first, with the job worker, the item, the quantity pending and the days left. A line of inputs sent on 10 November 2026 shows its due date as 10 November 2027, so you see it coming long before it lapses.

ITC-04

The challans and returns are the ITC-04 return. ARUKZ ERP prepares the Excel workbook and the JSON file for the GST offline tool; you upload and file on the portal. See ITC-04 for job work: who files it and how.

If you do job work for others (job worker)

The principal's goods are not your stock

Record the principal's challan when their material arrives: their challan number and date, the items, the quantities, whether each line is inputs or capital goods, and the value they stated. ARUKZ ERP keeps these goods in a separate location for that principal, outside every warehouse. They never appear in your on-hand quantity, your stock value or your books, but you can see exactly how much of each principal's material you hold.

The return date for each line is counted from the principal's challan date: one year for inputs, three for capital goods.

Return challans

Send back splits what goes back into four quantities for each line:

Each return gets its own number from your series, such as JWR/2627/000001, and prints as a challan. ARUKZ ERP reminds you when the return probably needs an e-way bill (another State, or over ₹50,000 at the principal's stated value) and keeps the number, validity and distance once you have generated it on the portal.

The job-charge invoice

From a return challan, Invoice job charges makes a draft sales invoice to the principal for the work, as a service under SAC 9988. You enter the amount and pick the GST rate: 5% for job work on goods listed for it, 18% for other job work, or 1.5% for diamonds. CGST and SGST or IGST follow the principal's state, as on any other invoice. Check the rate with your CA, then post the invoice in Invoicing.

Reconciliation per principal, with ageing

Principal reconciliation shows one row for each principal: received, sent back processed, sent back unprocessed, scrap, lost, and what is still with you. Two more columns show how much of that balance is overdue (past its return date) and how much is due within 30 days. It downloads as a CSV, which is the statement most principals ask for before they file their own ITC-04.

Related

The job work and subcontracting guide lists the GST rules behind each of these steps. To see it on your own parts, start a 14-day free trial.

What it does not do

• It does not generate e-way bills. It tells you when one is likely needed; you generate it on the e-way bill portal and record the number.
• It does not file ITC-04. It prepares the Excel and JSON files; you upload them on the GST portal.
• It does not raise the tax invoice for goods that miss the 1-year or 3-year limit. It shows the due dates and what is overdue; the invoice for a deemed supply is yours to raise with your CA.
• On a challan you send out, the process is picked from a short list (heat treatment, electroplating, anodizing, grinding, laser cutting, powder coating). The work done, typed on each return, is free text.
• The job-charge invoice offers three GST rates. If your job work falls under another entry, set the tax by hand on the draft invoice.