When is E-way Bill Mandatory

E-way Bill Applicability

E-Way bill is compulsory to be generated in case of movement by a registered person of goods having consignment value more than Rs. 50,000. Please keep in mind that the threshold limit of Rs. 50,000  is only in respect of inter-state movement of goods. In respect of intra-state movement of goods, the states are given freedom to decide the threshold limit state-wise. A question comes to mind that "Whether generating E-way Bill is required below Rs. 50,000 in any case?"

Answer to this question is "Yes". There are certain situations where e-way bill generation is mandatory, irrespective of the value of consignment. It means that e-way bill is required to be generated where consignment value is even Rs. 1 in certain scenarios. Therefore, the businesses should be aware of such scenarios and specially those businesses who are dealing in such trades.

There are 2 scenarios where e-way bill is compulsory irrespective of consignment value of goods. These 2 scenarios are:-

• Inter-state movement of goods for the purpose of jobwork:- Read our article on this topic: E-way bill for job work
• Inter-state movement of handicraft goods from person exempted from GST registration requirement (unregistered handicraft dealer)

Inter-state movement of handicraft goods from 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 obtaining registration under section-24 of CGST Act i.e. an unregistered handicraft dealer, such handicraft dealer shall generate e-way bill irrespective of the value of the consignment.

Thus, if you are a person who is dealing in handicraft goods and carrying goods from one state to another, generating e-way bill is mandatory and please keep in mind that there is no threshold monetary limit in this case. 

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

• Leather articles (including bags, purses, saddlery, harness, garment)
• Carved wood products (including boxes, inlway work, cases, casks)
• Carved wood products (including table and kitchenware)
• 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, brassware)
• 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, can/Rattan furniture
• Dolls and toys
• Folk paintings, madhubani, patchitra, Rajasthani miniature

To conclude, person who are sending goods to another state for job-work or the unregistered handicraft dealers who are dealing in inter-state supplies, need to be aware about the fact that e-way bill is mandatory in their case and should be well equipped to raise an e-way bill as and when required irrespective of the value of goods consigned.