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

Ravi Engineering of Chennai (Tamil Nadu) sends goods to a job worker in Karnataka, both registered, and the consignment value is Rs 30,000. Under Rule 138(1), which statement is correct?

The e-way bill must be generated by the principal or the registered job worker irrespective of value. Rule 138(1) has a proviso for goods sent by a principal in one State to a job worker in another State, so the Rs 30,000 value, being below Rs 50,000, gives no exemption.

  1. ANo e-way bill is needed because the value is below Rs 50,000
  2. BThe e-way bill must be generated by the principal or the job worker, if registered, irrespective of valueCorrect
  3. COnly the job worker may generate it, and only after delivery
  4. DIt is needed only if the goods are later sold by the job worker

Explanation

The third proviso to Rule 138(1) states that where goods are sent by a principal in one State to a job worker in another State, the e-way bill shall be generated by the principal or the job worker, if registered, irrespective of consignment value. The Rs 30,000 value therefore does not exempt the movement, and generation must be before movement.

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