25 February 2023
In state of Rajasthan, threshold limit for e-way bill for iron steel is Rs 1 lakh. A & B, two different firms, sell some material to C. A sells goods of HSN 7211 worth Rs 70000 B sells goods of HSN 7214 worth Rs 50000 Both transport goods to C in a single vehicle on same date. Individually both invoices are below threshold of 1 lakh, but the total of the two is more than 1 lakh. Question is whether e-way bill required in this case, and for which of the two, or both the invoices? Kindly explain the legal position in such cases. Thanks and regards.
26 February 2023
As per Rule 138 of the CGST Rules, 2017,every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-way bill. Here two consignments by different vendors within limit hence E way bill not required.
26 February 2023
Thanks Resp. Seetharaman Sir for your guiding n helping reply as always. Sub Rule 7 of the said Rule 138 provides that E-way bills be generated by the transporter, if aggregate consignment value exceeds the threshold. But that's only in case of inter-state movements, not for within the same state. I was skipping the words "inter state" , hence the confusion. Thus, for intra state (local) supplies by different vendors, value per vendor would matter, and not the aggregate value. Pls correct me if I'm getting it wrong. Regards.
26 February 2023
(7) Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case maybe, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods. Here two supplier supplying the goods within limit no need for transporter to generate E way bill
26 February 2023
Limit for ewaybill is always seen with regards to consignment value and not invoice value. Where threshold limit is being exceeded by the amount of goods in a carrier eway bill will have to be generated. In such case since suppliers do not know whether consignment value is getting exceeded or not transporter will generate ewaybill.
27 February 2023
Seetharaman Sir, actually I was inadvertently reading the previous version of Rule 138 which is amended subsequently and Sub Rule 7 is substituted with the text quoted by you. The words " in respect of inter-State supply" are no longer there in the substituted version. Sir, earlier this was intended only for inter state supplies, but now this might imply that local supplies would also be covered when aggregate consignment value exceeds the threshold as interpreted by Altamush Zafar Ji. But what will happen when the transporter is an unregistered person, owner-cum driver, almost illiterate, owning just a small tempo, and he won't generate it? In my example, vendor A's value was below limit, so he won't generate EWB. Then the carriage goes to B to load another consignment on top of A's material (Such practice is very common!), which again individually is below the threshold. How would B know that the total value in vehicle has crossed the threshold? I found this document by CBIC :- https://www.cbic.gov.in/htdocs-cbec/gst/Electronic%20way%20Bill-050819.pdf On page# 3/5 this is written: "Finer Points : An e-way bill has to be prepared for every consignment where the value of the consignment exceeds Rs. 50,000/. Where multiple consignments of varying values (per consignment) are carried in a single vehicle, e-way bill needs to be mandatorily generated only for those consignments whose value exceeds Rs. 50,000/-. This does not however preclude the consignor/consignee/transporter to generate e-way bills even for individual consignments whose value is less than Rs. 50000/- per consignment. For multiple consignments (with E-way bill generated individually) being carried in the same vehicle, the transporter may prepare a consolidated e-way bill by indicating serial number of each e-way bill, on the common portal prior to commencement of transport of goods." Now Zafar Sahab, pls see that this is in line with Seetharaman Sir's view. Sirs, Kindly guide us. Also, in Rajasthan, threshold was increased to 1lakh in place of 50K. So , what value will be considered for 138(7)? Regards.
27 February 2023
for consolidated eway bill as you said that consolidation of two or more individual eway bill. This is not in line with what R Seetharaman said because there has to be individual eway bill to consolidate them. In your case the transporter will have to generate individual eway bills and then he can consolidate them. All in all what I said that eway bill is mandatory in your case is correct.
27 February 2023
Thanks a lot Zafar Sb. However, confusion still remains because of these lines in the CBIC instructions quoted above "...Where multiple consignments of varying values (per consignment) are carried in a single vehicle, e-way bill needs to be mandatorily generated only for those consignments whose value exceeds Rs. 50,000/-...."
I don't know if such CBIC instructions have a binding legal force, but these words seem identical to Seetharaman Ji 's view. Consolidated EWB is another thing; yes that's for the registered transporter to generate only on the basis of already generated individual EWBs. But in our case, applicability of individual EWBs is still not clear in the first place. I humbly request you to please re-affirm your views in the light of above. Thanks n regards.
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