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

In terms of Rule 138, an E-Way Bill is mandatory ofr interstate counter sales exceeding Rs. 50,000/- to be genearted by either the supplier or the recepient as the case may be.

In simple words, the person who causes the movement of consignment of goods is laible to create an E-Way Bill.

Answers to your queries revolves around the phrase, "Who causes the movement of the goods ? " Nature of supply is not the determinant factor. The terms, "inter-State supply or intra-State supply " determines nature of tax i.e. IGST or CGST/SGST. Nature of supply is not criteria for E-way bill. The criteria for E-way bill is based on two factors and these are :

Movement of goods and who causes the movement of goods.

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 ?

1. Ans. NO as explained above.

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?

2. Ans. The buyer because the ownership of the goods stands transferred at the door of the business premises (shop).

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 ?

3. Ans. Actual movement of the goods and the person causing such movement are crucial.

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 ?

4. Ans. Penalty is imposable for procedural lapse but the case laws can help you in getting exoneration.

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 ?

5. Ans. YES

In this case ideally the customer would issue the EWB since any non-compliance with this and if the vehicle in which the said goods are transported, is intercepted, the penalty will fall on the customer since it is his responsibility and interest to get the detained goods released.

Non-issuance of eway bill cannot lead to penalties after the goods have reached the destination.