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CA Intermediate · Taxation · E-Way Bill

Sharma Traders, Jaipur (registered), sends goods to a job worker in Kota, within Rajasthan, for processing. The goods are sent under a delivery challan and the consignment value is Rs 2,40,000. The principal wants to know who generates the e-way bill when goods move from a registered principal to a registered job worker and the movement is for job work. Which statement is correct?

The principal may generate the e-way bill. The e-way bill rules cover movement of goods for reasons other than supply, such as job work, when the consignment value exceeds Rs 50,000. Since Rs 2,40,000 exceeds the limit, an e-way bill is required and the consignor can generate it.

  1. AOnly the job worker can generate it, as the recipient
  2. BThe principal may generate it, even though the movement is not a supplyCorrect
  3. CNo e-way bill can be generated, since job work movement is not a supply
  4. DOnly the transporter must generate it, and the principal has no role

Explanation

An e-way bill is needed for movement of goods in relation to a supply, for reasons other than supply (such as job work), or inward supply from an unregistered person, when value exceeds Rs 50,000. Here the movement is for job work and the value is Rs 2,40,000, so the principal, as consignor, may generate the e-way bill. Option C is wrong because the requirement is not limited to supplies.

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