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

Gopal Traders, a registered dealer in Jaipur, sends goods by road to its job worker, a registered person in Surat (another State). The invoice-equivalent delivery challan shows a consignment value of Rs 30,000. Under Rule 138 as given, what is the position on the e-way bill?

For inter-State movement from a principal to a job worker, the e-way bill must be generated by the principal or the job worker, if registered, regardless of consignment value. The Rs 50,000 threshold does not apply, so a Rs 30,000 consignment still needs an e-way bill.

  1. ANo e-way bill is needed because the value does not exceed Rs 50,000
  2. BAn e-way bill must be generated by the principal or the job worker, if registered, irrespective of valueCorrect
  3. CAn e-way bill must be generated only by the transporter, never by the principal
  4. DAn e-way bill is needed only if the job worker is unregistered

Explanation

The third proviso to Rule 138(1) says that where goods are sent by a principal in one State to a job worker in another State, the e-way bill is generated either by the principal or the job worker, if registered, irrespective of the consignment value. The Rs 50,000 threshold is therefore irrelevant here, which is why the first option is wrong.

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