eway bill generation for urd purchase

[Allauddin Patel]

Dear sir/ madam my question is

We are registered in gst . farmers brings raw cotton to our factory through their tata ace or tractor or any other vehicle , we check the raw cotton and purchase this after final price . we will issue later urd self invoice on their name and give payment, do we need to issue eway bill also if value is more than 50000. ? 

 

[Sadanand Bulbule]

Yes,you need to generate the e-way bill as the registered recipient since the movement of goods is over Rs. 50000/- is from an unregistered person[URP].

[Allauddin Patel]

We will not arrange the vehicle sir , farmers themselves bring raw cotton to factory and we will check the quality if its fine according to our price we will buy it and make self invoice on their name .. if quality is not according to our price then we will reject raw cotton ....

[Sadanand Bulbule]

It is safer not to wait for the invoice ( the sale) to generate the E-way bill( the movement). It is required  before the wheels start turnig at the farm. In case the sale is not finalised, you may record the reasons accordngly to convince mismatch of e-way bill and inward supply of goods, if questioned in future.

This is my personal opinion. Choice is yours.

[Allauddin Patel]

If break the urd self invoice on farmer name name to Rs 49900. Less than 50000,

Then no need to generate e-way bill ...

Correct sir ?

[Shilpi Jain]

If this raw cotton is exempt from GST then there is no requirement to issue EWB for exempted goods. 

AI Summary

E-way bill: registered recipients must generate one for incoming goods over Rs.50000 from unregistered suppliers unless goods are GST-exempt. Where a registered recipient purchases raw cotton brought by unregistered suppliers, the recipient must generate an E-way bill for movements exceeding the statutory value threshold, preferably before movement begins; if the goods are GST-exempt no E-way bill is required. Maintain records to explain any mismatch between E-way bills and inward supplies, and avoid artificial transaction splitting to evade the threshold.