Page 8 - Ch13_ ACCOUNTS, RECORDS & E-WAY BILL

CCP 13.04.11.00

1) Yash & Co., a manufacturer and supplier of plastic goods, is registered under GST in the state of
Maharashtra. Yash & Co. sold plastic goods to a retail seller in Punjab, at a value of ₹ 43,000
(excluding GST leviable @ 18%). Now, it wants to send the consignment of such plastic goods to the
retail seller in Punjab.
You are required to examine and advise Yash & Co., whether e-way bill is mandatorily required to be

generated in respect of such movement of goods under GST laws? [CA IPC Jan 21 Exam] [CA
Inter MTP Apr 23]
2) M/s Sakura Enterprises made an inter-State supply of taxable goods valued at ₹ 47,500 and exempt

goods valued at ₹ 2,000. Rate of IGST for taxable supply was 6%. Determine, with brief reasons,
whether e-way bill generation is mandatory for the above supply made by M/s Sakura Enterprises.
[CA Inter Nov 22 Exam]
3) Dhananjay Associates registered in Gujarat deals in industrial grade iron and steel products. The
proprietor of Dhananjay Associates sold TMT Iron bars (GST applicable @18%) to a retailer in

Maharashtra at a value of ₹ 40,000 (excluding GST). As per the agreement of sale, goods are to be
delivered at the premises of retailer. The transportation cost of ₹ 7,000 has been charged separately
to deliver the same to the retailer in Maharashtra. In the above scenario, determine whether an e-

way bill is required to be issued under GST? [Study Mat]
Answer:
Legal Provision:-
Ø As per Rule 138(1) of CGST Rules, a registered person is mandatorily required to generate e-way bill if he

causes movement of goods of consignment value exceeding ₹ 50,000 in relation to a supply.
Ø The consignment value shall be the value as per section 15 as declared in an invoice
Ü including CGST, SGST, UTGST, IGST and cess charged, if any, in the document but
Ü it excludes the value of exempt supply of goods where the invoice is issued in respect of both exempt and

taxable supply of goods.
Discussion & Conclusion:-
1) Ü In given case, the consignment value of goods will be ₹ 50,740 [i.e., ₹ 43,000 + (₹ 43,000 ×18%)].
Ü Since the movement of goods is in relation to supply of goods and the consignment value exceeds ₹
50,000, the e-way bill is mandatorily required to be generated for movement of goods from
Maharashtra to Punjab.

2) Ü In the given case, consignment value of goods (including GST and excluding value of exempt
supply) is ₹ 50,350 (47,500 × 106%).
Ü Since there is a movement of goods of consignment value exceeding ₹ 50,000, M/s Sakura
Enterprises is mandatorily required to issue e-way bill.

3) Ü Since arranging freight is the liability of supplier, it is a case of composite supply and thus, freight
charges are to be added in the value of principal supply.
Ü Accordingly, the consignment value of goods will be ₹ 55,460 [(₹ 40,000 + ₹ 7000) * 118%]
Ü Since there is a movement of goods of consignment value exceeding ₹ 50,000, Dhananjay

Associates is mandatorily required to issue e-way bill.

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