E-way bill is an electronic document generated on the GST portal, which is mandatory for the movement of goods valuing more than Rs. 50,000. It was introduced to facilitate seamless movement of goods across states and to ensure tax compliance The e-way bill system, while crucial for tracking goods and curbing tax evasion, can add an administrative burden to businesses. Thankfully, there are exemptions in place to streamline the process for certain situations. In this article, we’ll focus on two key scenarios where an e-way bill is not mandatory, as per Notification No – 3/2018 Dated: 15/06/2018.

Exemption 1: Consignment Value Below Rs. 1,00,000

If the value of your consignment (goods being shipped) is less than Rs. 1,00,000 (one lakh rupees), you’re exempt from generating an e-way bill. This exemption applies within the state (intra-state movement). This simplifies the process for smaller shipments, saving time and resources.

Exemption 2: Sale to Unregistered End Consumer (Any Value)

Supplying goods to an unregistered customer (individual purchaser) is exempt from e-way bill requirements irrespective of the value of the goods. There’s one key requirement, however: you must have proper documentation to prove the transaction. This documentation can include:

• Invoice
• Bill of Supply
• Voucher
• Challan

These documents serve as proof of sale and ensure transparency in the transaction.

Important Note:

While an e-way bill might not be mandatory in these scenarios, it’s always a good practice to maintain proper records of your shipments and sales. This can be helpful in case of any discrepancies or audits.

Remember:

• This information is specific to Notification No. 3/2018, and e-way bill exemptions may vary depending on the state. It’s advisable to consult the official government website of your state’s tax department for the latest guidelines.

• The threshold for e-way bill exemption based on consignment value can also change over time. Staying informed about these updates can ensure you’re following the most recent regulations.

Conclusion

Understanding e-way bill exemptions can save you time and effort. By keeping the above-mentioned points in mind, you can ensure a smooth flow of goods within the permissible limits. For further details and specific requirements, refer to the official notification or your state’s tax department website.