Generation of E-Way Bill Depend On Interstate-Movement of Goods, Not Supply: CBIC [Read Circular]

The Central Board of Indirect Taxes and Customs ( CBIC ) on Friday, clarified that the generation of E-Way bill is not depend on whether a supply is inter-state or not but on whether the movement of goods is interstate or not. Therefore, an E-Way bill is required to be generated in case of a good  transit through a second state while moving from one place to another in the same state. There is no requirement to generate an E-Way bill where goods move from a DTA unit to SEZ and vice-versa within the same state if the same has been exempted under rule 138(14)(d) of CGST rules. It is further clarified that according to proviso to 138(2A) OF THE CGST Rules 2017 the railways shall not deliver the goods unless the E-Way bill is produced at the time of delivery.

The CBIC further clarified that moulds and dies owned by original equipment manufacturers(OEM) provided free of cost (FOC) to a component manufacturer (the two not being related persons or distinct persons)is not taxable because it  does not constitute a supply as there is no consideration. There is no requirement of reversal of Input Tax Credit availed by the OEM if the moulds and dies are supplied   on a free of cost basis to the component manufacturers in the course of/or in furtherance of its business.

In the circular, it is stated that in the case of servicing of cars where the supply involves supply of both goods(spare parts)and service(labour) and the value of such goods and services are shown separately the goods and services would be liable to tax at the rates applicable such goods and services separately and  taxability of such supply will depend on the facts and circumstances in each case.

In case of auction of tea, coffee, rubber etc, it is clarified that the principal and the auctioneer are required to maintain books of account relating to each and every place of business should be maintained in that place itself, according to section 35(1) of the CGST Act. However, in case of any difficulty  , they may maintain the books of accounts relating to additional places of business instead of such additional places of business. They shall intimate their jurisdictional officer about the maintenance of books of accounts relating to their additional places of business at their principal place of business.