CMA Intermediate · Direct and Indirect Taxation

Tax Invoice and Electronic Way Bill for CMA Inter

A tax invoice is the document a registered person issues for a taxable supply of goods or services. An e-way bill is the electronic document that goes with a movement of goods. To solve questions, identify the document needed, then check what the person-in-charge of the conveyance must carry under Rules 55A and 138A.

What this chapter covers

This chapter covers the documents that support a supply and the documents that must travel with goods. It begins with the tax invoice: its meaning, the time to issue it and its contents. It then moves to the bill of supply, credit notes, debit notes and other documents. The last part deals with the electronic way bill: when it is needed, how it is generated, how long it stays valid, and how it is updated or cancelled.

Two rules from the CGST Rules, 2017 are the legal core of the transport part. Rule 55A says the person-in-charge of the conveyance must carry a copy of the tax invoice or bill of supply where he is not required to carry an e-way bill. Rule 138A lists what the person-in-charge must carry when an e-way bill applies. You should learn both in plain words and be able to apply them to a case.

This chapter links to the rest of the paper in several ways. Invoicing connects to time and value of supply, input tax credit, and returns, because every credit note or debit note changes the tax figures reported. The e-way bill connects to movement of goods, place of supply and the registration rules. Expect the chapter to appear in both MCQs and short written answers.

This chapter is rule-based and compact, so it is a good place to secure marks. MCQs often test who carries which document, and short written questions test whether you can list the contents or conditions in a clean format. Students who know the rules in their exact wording lose very few marks here. The chapter also supports other GST topics, so effort spent here pays back elsewhere in the paper.

Tax Invoice - Electronic Way Bill: topics in the order to study them

1Tax Invoice: Meaning, Time and ContentsStart here because every other document in the chapter builds on the tax invoice.
2Bill of Supply, Credit Note, Debit Note and Other DocumentsOnce you know the tax invoice, learn the documents used when an invoice does not fit, or must be corrected.
3Rule 55A: Tax Invoice to Accompany Transport of GoodsThis short rule links invoicing to transport and sets up the e-way bill that follows.
4Electronic Way Bill: Concept and When It Is RequiredYou need the concept and the trigger for an e-way bill before learning its mechanics.
5Generating, Validity, Updating and Cancelling E-Way BillThis is the procedural part and is easier once you know why the e-way bill exists.
6Rule 138A: Documents and Devices to Be Carried in ConveyanceFinish with this rule, which ties all the documents together as what the person-in-charge must actually carry.

How to prepare Tax Invoice - Electronic Way Bill

Treat this chapter as a set of rules plus a few procedures. Learn the rules in plain words first, then practise applying them to short cases.

Read the tax invoice topic and write its contents and timing rules as a short list in your own words.
Make a one-page comparison of tax invoice, bill of supply, credit note, debit note and delivery challan: when each is used and who issues it.
Learn Rule 55A in one sentence: where no e-way bill is required, the person-in-charge carries a copy of the tax invoice or bill of supply.
Learn Rule 138A in parts: the invoice, bill of supply or delivery challan; the e-way bill copy or number; the exception for rail, air or vessel; the extra bill of entry for imported goods; and the QR code with IRN option.
Learn the e-way bill procedure as a sequence: when it is needed, who generates it, validity, updating, cancellation. Check the current thresholds and limits in your study material.
Solve past MCQs and short questions. For written answers, state the rule first, then apply it to the facts in a line or two.

Common mistakes in Tax Invoice - Electronic Way Bill

Saying the person-in-charge always carries an e-way bill.
Fix: Split every case in two: e-way bill required, so Rule 138A applies; not required, so Rule 55A applies and the invoice or bill of supply copy is carried.
Applying the e-way bill carrying requirement to goods moved by rail, air or vessel.
Fix: Remember that Rule 138A(1)(b) does not apply to movement by rail, air or vessel, though the document in clause (a) is still carried.
Forgetting the bill of entry for imported goods.
Fix: For imports, add the bill of entry copy and show its number and date in Part A of FORM GST EWB-01.
Confusing a delivery challan with a tax invoice.
Fix: Link the delivery challan to goods moving for reasons other than supply, and the tax invoice to a supply.
Mixing up credit notes and debit notes.
Fix: Ask one question: does the document reduce or increase the taxable value or tax on the original invoice? Then pick the note.
Quoting thresholds, time limits or validity periods from memory.
Fix: Take such figures only from your current study material or notifications, and write rules with exact conditions in the answer.

Last-day revision: Tax Invoice - Electronic Way Bill

A tax invoice supports a taxable supply; a bill of supply is used where tax invoice is not applicable, as your study material explains.
Credit notes and debit notes correct an earlier invoice; know which one reduces and which one increases the value.
Rule 55A applies where the person-in-charge is not required to carry an e-way bill.
Under Rule 55A, the person-in-charge carries a copy of the tax invoice or bill of supply.
Rule 138A(1): carry the invoice, bill of supply or delivery challan, as the case may be.
Rule 138A(1): also carry a copy of the e-way bill in physical form, or the e-way bill number in electronic form, or the number mapped to an RFID device embedded on the conveyance.
The e-way bill requirement in Rule 138A(1)(b) does not apply to movement of goods by rail, air or vessel.
For imported goods, the person-in-charge also carries a copy of the bill of entry and its number and date are shown in Part A of FORM GST EWB-01.
Where an invoice is issued under Rule 48(4), the QR code with the embedded IRN may be produced electronically in place of a physical copy.
The Commissioner may notify a class of transporters to obtain and embed an RFID device and map the e-way bill to it before movement.
In notified circumstances, the person-in-charge may be required to carry the invoice, bill of supply, bill of entry or a delivery challan instead of an e-way bill.
A delivery challan applies where goods move for reasons other than supply.

Tax Invoice - Electronic Way Bill practice questions

Tax Invoice - Electronic Way Bill in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Tax Invoice - Electronic Way Bill: frequently asked questions

What does Rule 55A say?

Rule 55A says the person-in-charge of the conveyance shall carry a copy of the tax invoice or bill of supply issued under Rules 46, 46A or 49. This applies where such person is not required to carry an e-way bill under the Rules.

What must the person-in-charge of a conveyance carry under Rule 138A?

He must carry the invoice, bill of supply or delivery challan, as the case may be. He must also carry a copy of the e-way bill in physical form, the e-way bill number in electronic form, or the number mapped to an RFID device on the conveyance.

Is an e-way bill needed when goods move by rail, air or vessel?

The carrying requirement in Rule 138A(1)(b) does not apply to movement of goods by rail, air or vessel. The invoice, bill of supply or delivery challan under clause (a) is still relevant.

Can the invoice be shown electronically?

Where an invoice is issued in the manner prescribed under Rule 48(4), the QR code with the embedded IRN may be produced electronically for verification by the proper officer. It can be used in place of a physical copy of that tax invoice.

How should I answer a written question on this chapter?

State the rule first in plain words, then apply it to the facts given. Keep each point on a separate line so the examiner can award step marks.