As per Rule 138 of the CGST Rules, 2017, an E-way bill must be generated and carried along during the course of transportation of goods, if the value of the consignment exceeds Rs. 50,000. However, is it compulsory if there is no supply of goods involved?
Case Details : E-way bill requirement for transport of goods for demo purpose
Declared By : Madhya Pradesh High Court on 01-05-2023
What Happened Exactly :
- The petitioner company is a famous car manufacturer.
- It was transporting a demo car in Madhya Pradesh from another state.
- The department issued order demanding tax and penalty as E-way bill was not prepared for this transport.
- The petitioner contends that bringing of demo vehicle into the State of Madhya Pradesh would not render the transaction exigible to GST since no financial consideration is involved in the absence of sale or purchase.
- The department states that E-way bill is required in case of movement of goods exceeding the value of Rs.50,000/-, even if they do not qualify the definition of supply become exigible to GST.
- Aggrieved petitioner filed this petition.
Court's Decision :
- Bare perusal of the relevant statutory of Rule 138(1)(ii) of the CGST Rules, 2017 makes it clear that the causing of movement of a goods exceeding the value of Rs.50,000/- even for the reasons other than supply, makes it incumbent upon the supplier to inform about the supply of goods in Form-A GST, EWB-01 electronically on the common portal alongwith other information as required.
- In the present case, no such information as mandatory in Rule 138(1) of GST Rules, was given by the petitioner supplier.
- It is obvious that in the absence of information given, the entry of demo car into the State renders it exigible to GST.
- The writ petition is dismissed.
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