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CMA Intermediate · Direct and Indirect Taxation · Tax Invoice - Electronic Way Bill

Rajan Steel Traders in Ludhiana sends goods by rail to Kolkata. Which statement is correct under Rule 138A(1)?

The carriage of an e-way bill under clause (b) is not required for movement by rail, air or vessel, because of the proviso to Rule 138A(1). The documents in clause (a), the invoice, bill of supply or delivery challan, must still be carried.

  1. AThe e-way bill requirement in clause (b) of sub-rule (1) does not apply to movement by rail, air or vessel, but the invoice, bill of supply or delivery challan must still be carried as requiredCorrect
  2. BNeither the invoice nor the e-way bill needs to be carried for movement by rail
  3. CThe e-way bill must be carried in physical form for rail movement
  4. DOnly the e-way bill is needed, and the invoice may be dispensed with

Explanation

The first proviso says clause (b), the e-way bill carriage requirement, does not apply to movement of goods by rail, air or vessel. Clause (a), concerning the invoice, bill of supply or delivery challan, is not exempted by that proviso.

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