E-Way Bill Applicability – Invoice Splitting & Deferred Movement

[Fahiyaz Ahmmed]

A retailer issues two tax invoices of Rs. 40,000 (1 January) and Rs. 35,000 (5 January) even though the actual sale and movement of goods take place on 10 January. The goods remain at the retailer’s premises until 10 January, when the buyer purchases them, arranges transportation, and moves the entire consignment together in one vehicle.

The issue for discussion is whether an e-way bill is mandatory when multiple invoices (each below Rs. 50,000) are transported together and the aggregate consignment value exceeds Rs. 50,000. Further, whether invoice splitting prior to actual supply can be considered valid under Rule 138 of the CGST Rules, and who is responsible to generate the e-way bill when the buyer causes the movement of goods.

[Sadanand Bulbule]

Section 9 of the CGST Act authorises levy of GST only on taxable supplies made in reality, and not on mere paper-engineered invoices. In the absence of proof of actual supply, real movement of goods or real provision of services, no tax can be charged under Section 9, since GST is a levy on substance of the transaction and not on form or book entries.

So follow the statute in letter & spirit.

[Shilpi Jain]

Refer Issue Id: 120692

AI Summary

E-way bill applicability when invoices are split but goods moved later: taxable only on genuine supplies, not paper invoices. Levy of GST and the requirement for an e-way bill hinge on the substantive existence of a taxable supply and actual movement of goods; paper-engineered invoice splitting without real supply or movement cannot, by itself, create tax liability, and the replies underscore that tax attaches to the reality of the transaction rather than formal documentation.