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CMA Final · Indirect Tax Laws and Practice · E-way Bill

Delhi Crafts Pvt Ltd, a registered principal in Delhi, sends goods worth ₹30,000 to a registered job worker in Jaipur (Rajasthan) for processing, with no supply involved. As per Rule 138, which statement is correct?

An e-way bill must be generated by the principal or the registered job worker even though the value is only ₹30,000, because inter-State movement of goods from a principal to a job worker is covered irrespective of the consignment value.

  1. ANo e-way bill is needed because the consignment value is below ₹50,000
  2. BAn e-way bill must be generated by the principal or the job worker, irrespective of valueCorrect
  3. CAn e-way bill is required only if the job worker is unregistered
  4. DAn e-way bill is required only after the goods are returned to the principal

Explanation

The third proviso to Rule 138(1) says that where goods go from a principal in one State to a job worker in another State, the e-way bill shall be generated by the principal or the registered job worker irrespective of the consignment value. The ₹50,000 threshold therefore does not apply here, so the option relying on it is wrong.

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