Majumdar Industries is a partnership firm located in Jaipur. It is presently engaged in manufacture of machinery parts. Industries has given the following information relating to input tax credit for the month of Decembe

CS Executive · Tax Laws and Practice · PYQS · June 2024
Majumdar Industries is a partnership firm located in Jaipur. It is presently engaged in manufacture of machinery parts. Industries has given the following information relating to input tax credit for the month of December, 2023. Particulars GST Amount (₹) Purchase of raw material received in two equal instalments viz. the first one in December, 2023 and the second instalment in January, 2024 5,50,000 Purchase of consumables delivered directly to the job workers. Only invoice was received by the firm. 1,50,000 Purchase of bus (seating capacity 18) for transport of employees from residence to factory and back. 8,40,000 Input tax credit in respect of general insurance for motor cars of the firm used by Chief Engineers and Supervisors for official work. 12,000 Payment made to ABC Caterers for providing breakfast and lunch to the workers as voluntary staff welfare measure. 60,000 Now it is proposing to add trade in textile goods in addition to such manufacturing activity in Kota (Rajasthan) w.e.f. 1st April, 2024. Also, it proposes to open its machinery parts manufacturing activity in places such as Udaipur, Jodhpur and Bikaner (all places located within the State of Rajasthan). The management wants to obtain separate GST registration for the said multiple places of business. As regards trade in textile goods, it would be on pan India basis and it has appointed you as GST consultant. From June, 2024 Majumdar Industries is further planning to send the raw materials and semi-finished goods to job workers across Rajasthan for scaling up its production quantity of machinery parts. For the purpose of manufacture of the goods it would also send moulds and dies, jigs and other tools to the job workers for getting the product manufactured as per specifications and to achieve uniformity in production. As a GST Consultant, you are required to state when should the E-way bill be generated? Mention the salient features of e-way bills.

Answer & Explanation:

Under Rule 138 of the CGST Rules, 2017, an e-way bill is required to be generated for the transportation of goods where the consignment value is ₹ 50,000 or more in relation to- supply i.e. supply to customer; other than supply i.e. movement of goods for job work, repairs, etc; due to inward supply from unregistered persons (any procurement made from any unregistered persons). Where the goods are sent for job work located in a different state or Union Territory, e-waybill is required to be generated without any value threshold. Salient features of e-way bill: For the purpose of calculating the threshold of ₹ 50,000, the value shall be such as shown on the tax invoice / bill of supply / delivery challan, as the case may be, including the value of taxes but excluding the value of goods which are exempted from payment of tax, where the invoice is issued in respect of both exempt and taxable goods. The limit of ₹ 50,000 is not applicable where goods sent by principal in one State/UT to job worker in other State/UT or handicraft goods sent from one State/UT to another State/UT + by person exempted from registration u/s 24(i)(ii). E-way bill can be generated voluntarily even if the value of goods is less than ₹ 50,000. E-way bill has to be generated for each movement of goods whether it constitutes a taxable supply or an exempt supply or for reasons other than supply. E-way bill is also required to be generated regardless of the mode of transportation i.e. Railways, air, vessel or road. However, it is not required where the goods are transported in a non-motorized conveyance. It is required even where the goods are transported through a transporter or by own conveyance.

Topics: GST Laws

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