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CA Intermediate · Taxation · E-Way Bill

Ravi Textiles, Surat, a registered supplier, sells fabric worth Rs 40,000 to an unregistered buyer in Vadodara in Gujarat. Transport is by the supplier's own vehicle. Which statement about the e-way bill requirement is correct?

An e-way bill is not required, because the consignment value of Rs 40,000 does not exceed the Rs 50,000 threshold. The unregistered status of the buyer or the type of goods does not by itself create an obligation when the value is below the limit.

  1. AE-way bill is mandatory because the buyer is unregistered
  2. BE-way bill is not required as the value of the consignment does not exceed Rs 50,000Correct
  3. CE-way bill is required only if the buyer asks for it
  4. DE-way bill is required because the fabric is a textile product irrespective of value

Explanation

An e-way bill is generally required where the consignment value exceeds Rs 50,000. The consignment here is Rs 40,000, which is below the limit, and the registered status of the buyer does not change this. Option A is wrong because the buyer's status is irrelevant, and no rule makes textiles an exception irrespective of value. Note that a registered person can still generate one voluntarily, but it is not required.

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