Discussion Topic: E-Way Bill Applicability in Case of Invoice Splitting and Deferred Movement of Goods

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....iscussion Topic: E-Way Bill Applicability in Case of Invoice Splitting and Deferred Movement of Goods<br> Query (Issue) Started By: - Fahiyaz Ahmmed Dated:- 4-1-2026 Last Reply Date:- 11-1-2026 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>A retailer issues two tax invoices of Rs. 40,000 (1 January) and Rs. 35,000 (5 January) even though the&nbsp;actual sale and movement of goods take pl....

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....ace 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&nbsp;e-way bill is mandatory&nbsp;when multiple invoices (each below Rs. 50,000) are transported together and the&nbsp;aggregate consignment value exceeds Rs. 50,000....

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..... Further, whether&nbsp;invoice splitting prior to actual supply&nbsp;can be considered valid under&nbsp;Rule 138 of the CGST Rules, and&nbsp;who is responsible&nbsp;to generate the e-way bill when the&nbsp;buyer causes the movement of goods. ACTUAL FACT-&nbsp;A retailer intentionally issues two tax invoices of Rs. 40,000 and Rs. 35,000 to keep each invoice value below Rs. 50,000 and thereby avoi....

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....d generation of an e-way bill, though the goods are transported together in a single consignment. If the GST department detects this as a deliberate attempt to bypass e-way bill provisions, what penalty is leviable on the retailer? Reply By Sadanand Bulbule: The Reply: Section 9 of the CGST Act authorises levy of GST only on taxable supplies made in reality, and not on mere paper-engineered invo....

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....ices. 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. Reply By Shilpi Jain: The Reply: If caught by the officer on road, surely penalty would be levied. So better to not split or even....

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.... if split let the EWB be issued.<br> Discussion Forum - Knowledge Sharing ....