E-way bill exemption for unmanufactured tobacco under HSN 2401 not covered by the notified tobacco restriction.

A notification issued under Rule 138(14)(d) of the Madhya Pradesh GST Rules exempted intra-State movement of goods from e-way bill generation, except for goods specifically listed in its table. The listed tobacco category covered cigarette, tobacco and tobacco products under HSN 2402 and 2403, while unmanufactured tobacco is classifiable under HSN 2401. On the plain wording of the notification and tariff classification, the restriction did not extend to unmanufactured tobacco, so an e-way bill was not required for its intra-State movement.

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Issues: Whether Notification No. F-A-3-08-2018-1-V (43) dated 24-4-2018, issued under Rule 138(14)(d) of the Madhya Pradesh Goods and Services Tax Rules, 2017, applies to unmanufactured tobacco classifiable under HSN 2401, and whether an e-way bill is required for its intra-state movement.

Analysis: The notification exempts intra-state movement of goods from e-way bill generation except for the goods specifically listed in the table. The listed tobacco entry covers cigarette, tobacco and tobacco products under HSN 2402 and 2403. Unmanufactured tobacco falls under HSN 2401 and is not included in those headings. On the plain terms of the notification and the tariff classification, the notified restriction did not extend to unmanufactured tobacco.

Conclusion: The notification was held not applicable to unmanufactured tobacco under HSN 2401, and generation of an e-way bill for its intra-state movement was not required.

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