When e-way bill is required to be generated under GST

In our earlier articles, we have discussed about e-way bill under GST regime, when to consolidate more than one e-way bill and the validity of it. In this article, we are discussing who has to compulsorily raise e-way bill and when it’s not applicable to you.

As per rule 138(1) every registered person who causes movement of goods of consignment value exceeding 50,000 rupees in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person shall before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal.

Meaning of who causes movement of goods

If the registered supplier undertakes to transport the goods, then movement of goods is caused by the supplier.

If recipient arranges transport, movement is caused by such recipient.

When goods are supplied by an unregistered supplier to a registered known recipient, movement shall said to be caused by such recipient.

Meaning of consignment value

Consignment value of goods shall be the value determined in accordance to section 15 of the CGST Act, 2017. It’s the value declared in an invoice, bill of supply or delivery challan as the case may be in respect of the said assignment. The consignment value includes the central tax, state or union territory tax, integrated tax and cess charged and shall exclude value of exempted supply of goods if the invoice is issued in respect of both exempt and taxable supply of goods.

When e-way bill is required for consignment value of less than Rs 50,000

As discussed above e-way bill is required when consignment value is Rs 50,000. However, there can be cases where e-way bill need to be issued even if the value of the consignment is less than Rs 50,000. Here are those cases;

• Where goods are sent by a principal located in one State to a jobworker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment.
• Where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment

the expression “handicraft goods” has the meaning as assigned to it in the Government of India, Ministry of Finance, notification No.32/2017-Central Tax dated 15.09.2017 published in the Gazette vide number G.S.R 1158 (E).

However, the registered person or the transporter may at their option generate and carry e-way bill even if consignment value is less then Rs 50,000.

When e-way bill is not required to be generated

As per GST law, no e-way bill is required to be generated in following cases —

• where the goods being transported are specified in Annexure;
• where the goods are being transported by a non-motorised conveyance;
• where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
• in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State or union territory GST rules in the particular state or Union territory.
• Where to goods being transported are;
  • Alcoholic liquor for human consumption
  • Petroleum crude
  • High speed diesel
  • Motor spirit (commonly known as petrol)
  • Natural gas
  • Aviation turbine fuel
• for goods which are treated as no supply under Schedule III of the CGST Act
• Where goods are being transported under customs bond from an Inland Container Depot (ICD) or a Container Freight Station (CFS) to a customs port, airport, air cargo complex and land customs station
• Where goods are being transported under customs supervision or under customs seal
• Where goods are being transported as transit cargo from or to Nepal or Bhutan
• Where the goods, apart from de-oiled cake, being transported are exempt from tax under notification no. 7/2017 and notification no. 26/2017 under Central Tax. [Its subject to amendment from time to time.]
• Any movement of goods caused by defence formation under ministry of defence as a consignor  or consignee
• Where goods are being transported by rail and the consignor of goods is the Central Government, State Governments or a local authority
• Where empty cargo containers are being transported
• Where goods are being transported up to a distance of 20 KMs from the place of the business of the consignor to a weigh-bridge for weighing or from the weigh-bridge back to the place of the business of the said consignor subject to the condition that the movement of goods has to be accompanied by a delivery challan issued in accordance with rule 55.
• Where empty cylinder for packing of liquefied petroleum gas are being moved for reason other than supply.

ANNEXURE [(See rule 138 (14)]