When is e-way bill mandatory?

When is e-way bill mandatory?

Inter-State movement of goods by the principal to the job worker by principal / job worker

Let us begin by revisiting our understanding of job work under GST. Job work primarily means the undertaking of any treatment or process by a person on goods belonging to another registered taxable person. It can be undertaken for the initial process, intermediate process, assembly, packing or any other completion process in the manufacturing cycle. Any such person who undertakes the job work is referred to as the job worker.

Now, as per the CGST rules, information with regards to the e-way bill is to be furnished prior to the commencement of the movement of goods, and also, the e-way bill is to be issued whether the movement is in relation to a supply or for a reason other than supply. The reason “other than supply” includes Job Work, removal for testing purpose, send on approval basis, non-taxable supply etc.

Thus, in keeping with the above, the provisions when is e-way bill needed are as follows:

• When goods are sent by a principal located in one State to a job worker in any other State, the e-way bill shall be generated by the principal, irrespective of the value of the consignment, i.e. e-way bill requirement is mandatory
• The principal is liable to generate the e-way bill before commencement of such movement of goods
• If the job worker who causes movement of goods is registered, the job worker has to generate the e-way bill, otherwise the principal has to generate the e-way bill
• If the job worker is registered and goods are returned back to the principal then, the job worker has to generate the e-way bill, since the movement is caused by the job worker
• If the job worker is unregistered, then either the principal or the transporter may generate the e-way bill

Inter-State movement of handicraft goods from person exempted from registration i.e. from an unregistered dealer

When handicraft goods are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration, i.e. someone who is an unregistered person, the e-way bill shall be generated by the said person irrespective of the value of the consignment. In other words, if such a person dealing in handicraft goods wants to understand when is e-way bill mandatory, the answer is yes, there is a mandatory e-way bill requirement.

The following are the list of handicraft goods for which e-way bill requirement is mandatory, as specified under the e-way bill rules:

• Leather articles (including bags, purses, saddlery, harness, garments)
• Carved wood products (including boxes, inlay work, cases, casks)
• Carved wood products (including table and kitchenware)
• Carved wood products
• Wood turning and lacquer ware
• Bamboo products (decorative and utility items)
• Grass, leaf and reed and fibre products, mats, pouches, wallets
• Paper mache articles
• Textile (handloom products)
• Textiles hand printing
• Zari thread 5605
• Carpet, rugs and durries
• Textiles hand embroidery
• Theatre costumes
• Coir products (including mats, mattresses)
• Leather footwear
• Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
• Stones inlay work
• Pottery and clay products, including terracotta
• Metal table and kitchen ware (copper, brass ware)
• Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals
• Metal bidriware
• Musical instruments
• Horn and bone products
• Conch shell crafts
• Bamboo furniture, cane/Rattan furniture
• Dolls and toys
• Folk paintings, madhubani, patchitra, Rajasthani miniature

In conclusion, principal businesses and job workers, as well as unregistered dealers dealing in handicrafts, who are dealing in inter-State supplies, need to be aware about when is e-way bill mandatory and should be equipped to raise an e-way bill irrespective of the value of the transactions.