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CA Intermediate · Taxation · E-Way Bill

Sharma Traders, a registered supplier in Jaipur, sends goods to a buyer in Kota by road. The consignment value is Rs 40,000 and the goods are not exempt or specifically excluded from e-way bill requirements. Sharma Traders is not required by any State rule to generate an e-way bill for intra-State movement below Rs 1,00,000. Which statement is correct as per the CGST Rules for this movement?

An e-way bill is not mandatory, because the general rule requires one only when the consignment value exceeds Rs 50,000. The consignment is worth Rs 40,000, so the threshold is not crossed. The mode of transport and the buyer's registration status do not alter this position.

  1. AAn e-way bill is mandatory because every registered person must generate one for any movement of goods
  2. BAn e-way bill is not mandatory for this intra-State movement because the consignment value does not exceed Rs 50,000Correct
  3. CAn e-way bill is mandatory only if the buyer is also registered in Rajasthan
  4. DAn e-way bill is mandatory because the movement is by road

Explanation

The general threshold for mandatory e-way bill generation under Rule 138 is a consignment value exceeding Rs 50,000. Here the value is Rs 40,000, so no e-way bill is mandatory for this movement. The road mode does not change this, and the buyer's registration is irrelevant to the threshold.

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