E way bill for own use - value of machine

[Venkatesh Dhongadi]

A Contractor is shifting a machine from one city to another city. While doing e way bill for own use whether there is need to enter value of machine?

[Sadanand Bulbule]

Shifting a machine for own use is a movement "otherwise than by way of supply." Therefore, a delivery challan under Rule 55 must be issued and the machine's /consignment value (normally its book value or reasonable declared value) must be mentioned in the e-way bill, if it exceeds Rs. 50,000

[YAGAY andSUN]

Where a contractor shifts a machine from one city to another for own use, such movement constitutes a transaction otherwise than by way of supply within the meaning of the Central Goods and Services Tax Act, 2017 (“CGST Act”). Accordingly, the goods must be accompanied by a delivery challan issued in terms of Rule 55 of the Central Goods and Services Tax Rules, 2017. Further, in accordance with Rule 138 of the said Rules, an e-way bill is required to be generated where the consignment value exceeds Rs. 50,000. The requirement to generate an e-way bill is triggered by the movement of goods where the distance to be covered exceeds 10 kilometers, and the details in Part B (vehicle details) are mandatorily required prior to commencement of movement, subject to the prescribed exceptions.

For the purpose of generating the e-way bill, the consignment value of the machine must be declared. In the absence of any sale consideration, such value shall ordinarily be the book value (including written down value, where applicable) or any reasonable declared value as per the books of account. The transaction type in the e-way bill may appropriately be selected as “Others.” No tax is payable on such movement, being otherwise than by way of supply, unless the transaction falls within the scope of deemed supply under the applicable provisions of the CGST Act.

AI Summary

E-way bill requirement for goods moved otherwise than by way of supply: declare consignment value and deliver a challan. Movement of a machine for own use is treated as movement otherwise than by way of supply and requires a delivery challan. An e-way bill must be generated when statutory consignment-value and distance conditions are met, with Part B vehicle details furnished. The consignment value must be declared for the e-way bill and, absent sale consideration, is ordinarily the book value or a reasonable declared value in the books.