E-way Bill Requirements and E-invoice, Goods and Services Tax - GST

[vaibhav kumar]

I am seeking clarification on several aspects related to E-way Bills and e-invoicing under GST, particularly in the context of vehicle sales and repairs. I would greatly appreciate your guidance on the following points:

1. E-way Bill for B2C Bike Sales:

   • Is an E-way Bill required for a B2C bike sale exceeding ₹50,000 if the customer drives the bike away directly from the dealership?

2. E-way Bill for B2B Transactions:

   • For B2B transactions exceeding ₹50,000, is an E-way Bill necessary if the bike is driven away by the buyer and not transported by another vehicle?

3. Handling Vehicle and Transporter ID Fields:

   • How should the Vehicle and Transporter ID fields be handled in the E-way Bill when the bike is driven away on its own wheels by the buyer?

4. GST Exemptions for E-way Bill Generation:

   • Are there any GST exemptions or specific provisions regarding the generation of an E-way Bill when the bike is self-transported by the buyer?

5. Intra-city Sales and E-way Bills:

   • Do we need to generate an E-way Bill for intra-city sales where the buyer drives the bike away, and the invoice amount exceeds ₹50,000?

6. Risks of Not Generating an E-way Bill:

   • What are the risks or consequences of not generating an E-way Bill if the bike is driven away by the customer without using a separate vehicle?

7. E-invoice "Ship-To" Field for Self-transported Bike:

   • In the case where the bike is self-transported by the buyer, what should be mentioned in the "Ship-To" field of the e-invoice?

8. E-way Bill and E-invoice for Insurance Claim Repairs:

   • In a scenario where a vehicle is repaired under an insurance claim at our workshop, but the bill is raised to an insurance company located in a different state, how should the E-way Bill and e-invoice be managed? Specifically, how should the "Supply Dispatch" details be shown in the e-invoice?

Your expertise will be invaluable in ensuring that we comply with GST regulations and manage our invoicing processes correctly.

Thank you for your assistance. I look forward to your detailed response.

Posts / Replies

[Sadanand Bulbule]

Dear Sir

Hope you are aware of the provisions governing generation of E-way bill. However it is reproduced hereunder for ease of reminder:

 CGST Rule 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-

(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees- 

(i)   in relation to a supply; or  

(ii)   for reasons other than supply; or  

(iii)   due to inward supply from an unregistered person, 

1] Coming back to your all queries, the common reply is, the transactions explained by are in the nature of counter-supply. Meaning on your own you are not causing the movement of  consignment of vehicles irrespective of its value. But you are actually handing over the vehicles [goods] to the buyers  across the counter [showroom] at their risk and responsibility for onward transportation. So you need not issue E-way bills.

2] Secondly as regards to invoicing for repair of vehicles covered by insurance, there is no need to generate E-way bill as long as such repaired vehicles are returned to the owners at your work shop only. So dispatch of such vehicles is to be shown in e-invoice as intra-state supply unless it is otherwise.

[KASTURI SETHI]

Perfect analysis  and perfect conclusion by Sh.Sadanand Bulbule, Sir Ji. Easy to understand the solution in respect of all the eight questions. 

[k.lakshmipati rao]

• E-way Bill for B2B Transactions:

  • For B2B transactions exceeding ₹50,000, is an E-way Bill necessary if the bike is driven away by the buyer and not transported by another vehicle?
• I wish to add that issue of E-way bill is mandatory, and can be issued by either "Supplier" or " Buyer" in respect of B2B transactions exceeding ₹50,000/- with in the State.
• In case of Inter-state transaction, issue of E-way bill is mandatory irrespective of value of goods, and, a copy of e-way bill to keep along with the Tax Invoice [as an evidence], in which, IGST charged. Otherwise, the State GST department would insist for payment of SGST+CGST. The Refund against IGST so paid should be claimed by the Supplier.

[Sadanand Bulbule]

Dear Rao Sir

Kindly enlighten me under what context your explanation is relevant and useful to the specified questions of the querist. Or is it the generic analysis of Rule 138 ?

[k.lakshmipati rao]

Dear Mr. Sadanand ji,

The transactions explained by the querist are in the nature of counter-supply only. However, you are aware that, in case the supplies being made as inter-state supply [IGST charged in the Tax Invoice], generation of E-way bill is mandatory, as per the provisions of Section 68 read with Rule 138, which will support as an evidence to confirm the said transaction done as “Inter-state supply” only.

Place of Supply:

The movement of Goods can be occasioned either by 1) the supplier or the recipient or by any other person [Refer Section 10(1)(a) of IGST Act 2017].

The place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient [Buyer].

It is essential to ponder over certain provisions of the Motor Vehicle Act, 1988, basis which, every Automobile Dealer is required issue Temporary Registration Certificate at the time of delivery of any Vehicle to the Buyer.

Consequent to the orders of High Court of Kerala, in the case of Kun Motor Co. Pvt. Ltd. vs The Asst. State Tax Officer - 2018 (12) TMI 531 - KERALA HIGH COURT on 6 December 2018, and, on the strength of Temporary Registration Certificate issued by dealer, the State GST department is deeming the place of supply [destination point for “delivery of Goods”] to buyer at showroom, considering the Supply as within the State, and accordingly, demanding SGST+CGST, till recently.

Taking pragmatic view in the matter, have suggested to issue E-way bill.

As per the insertion of new Section 10(1)(ca) of IGST Act 2017, which shall come into existence from 01-10-2023, when a sale is made to a B2C customer, the place of supply will be the address as mentioned on Tax invoice issued to the buyer. [Refer - CBIC Circular No. 209/3/2024-GST dt.26-06-2024].

[Sadanand Bulbule]

Dear Sir

Thank you very much for your quick response.

Regards

[KASTURI SETHI]

Circular No. 209/3/2024-GST dated 24.06.24 does not talk of E- way bill. It provides clarification regarding place of supply. 'E-way bill' and 'place of supply' both are different concepts with different meanings & different purposes.

This is my personal view.

[k.lakshmipati rao]

Dear Mr.Kasturi Sethi Ji,

I am aware Circular No. 209/3/2024-GST dated 24.06.24 is about clarification regarding "Place of supply" and does not relates to E-way bill.

After all, the Taxpayer is not losing anything by generating  'E-way bill'. As you are aware 'E-way bill' is a common document, available on GST portal, which can be submitted as a supporting document, if State GST dept., deeming the subject transaction as local sale, instead of Inter-state transaction. Perhaps, this would be required for a Taxpayer (Automobile dealer) like us.

 

[Sadanand Bulbule]

Dear all

1]. The provisions of the Act should work collectively to motivate ease of doing business and prevent predatory practices that continues to be a “concern” and derails the taxpayer from being a modest compliant.

2]. Overly compliance, like generating E-way bill when it is not at all required, leads to disruptive interpretations in the wrong hands.

3]. “Sometimes preventive remedy is worse than disease”.

4]. So I firmly and consciously stand by with my initial statement.

[KASTURI SETHI]

Sh. Sadanand Bulbule Ji,

Sir, This is with reference to your response at serial no. 9 above. Well observed, well analysed and well concluded again. Sometimes to be over-pro-active can jeopardize the interests of an assessee. If the querist has any doubt, he can opt for Advance Ruling.a

[KASTURI SETHI]

Sh.K.Lakshmipati Rao Ji,

"After all, the taxpayer is not losing anything by generating  'E-way bill--------------------- Taxpayer (Automobile dealer) like us".

Additional benefit is O.K.

But the issue involved is what is requirement of GST laws ?

We reinforce each other by way of discussion.