Applicability of E-Way Bill in case of Inter-State Counter Sale

[vaibhav agrawal]

We are a registered dealer under GST. During the course of business, we made an inter-State counter sale of goods to a customer.The goods were sold directly from our business premises against a proper GST tax invoice. However, no e-Way Bill was generated at the time of the sale.

We seek expert views on the following:

1. Whether an e-Way Bill is mandatory in the case of an inter-State counter sale, where the customer purchases the goods directly from the seller's premises?
2. If the customer himself takes possession of the goods from the seller's premises and arranges/undertakes transportation to another State, who is legally responsible for generation of the e-Way Bill under Rule 138 of the CGST Rules?
3. Whether the mere fact that the transaction is an inter-State supply makes an e-Way Bill mandatory, or whether the actual movement of goods and the person causing such movement is relevant?
4. Where the seller has issued a valid tax invoice and correctly discharged IGST, but an e-Way Bill was not generated, can a penalty be imposed merely for this procedural lapse?
5. Can the benefit of Section 126 of the CGST Act (general disciplines related to imposition of penalty) be claimed where there is no dispute regarding the underlying supply, tax payment, invoice, quantity or ownership of goods?

AI Summary

E-way bill obligations in inter-State counter sales depend on goods movement and the person causing transportation.
Inter-State counter sales raise questions on e-Way Bill requirements where a purchaser takes delivery from the seller's premises and transports goods to another State. The issues concern whether inter-State supply alone triggers e-Way Bill generation, who bears responsibility when the purchaser causes transportation, and the consequences of non-generation despite a valid tax invoice and IGST payment. General penalty disciplines are relevant where the underlying supply, quantity, ownership and tax payment are undisputed.