Skip to content

CA Intermediate · Taxation · E-Way Bill

Sharma Traders, Jaipur (registered), sells goods worth Rs 40,000 (inclusive of all taxes) to a customer in the same city. The goods are moved by a goods carrier over 8 km. Considering the value threshold, which statement about e-way bill requirement under Rule 138 of the CGST Rules 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 threshold applies to a consignment of goods moved by a registered person, so the short distance and the buyer's status do not change the result.

  1. AE-way bill is mandatory because every consignment by a registered person needs one
  2. BE-way bill is not required because the consignment value does not exceed Rs 50,000Correct
  3. CE-way bill is required only if the distance exceeds 10 km
  4. DE-way bill is required only if the buyer is unregistered

Explanation

An e-way bill is generally required where the consignment value exceeds Rs 50,000. Here the value is Rs 40,000, so it is not mandatory under the general rule, whatever the distance. Option 1 ignores the threshold. Option 3 confuses the 50 km/10 km distance relaxations for Part B, which apply only where the bill is otherwise required.

Did you get it right without looking?

One question tells you little. A timed set on E-Way Bill shows your real accuracy, how long you take and where you lose marks.

Practise E-Way BillFree diagnostic mock

More E-Way Bill questions