Aug 122018
 

Place of supply for E way bills

Inter-State movement or inter-State supply are two distinct terms to be recognized. By the fiction in section 7 of IGST Act, several transactions are imputed to be inter-State supplies, as for example, mentioned below:

  1. Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
  2. When the supplier is located in India and the place of supply is outside India;
  3. To or by a Special Economic Zone developer or a Special Economic Zone unit;
  4. In the taxable territory, not being an intra-State supply and not covered elsewhere in this section,

Movements for the purposes of E-way bills:

For the limited purposes of EWB, the actual movement alone determines whether it is inter-State movement (attracting Central EWB) or intra-State movement (attracting State/UT EWB).

EWB is required whether the movement of goods is pursuant to supply or not and pursuant to supply of goods or of services or inward supply from an unregistered person.

Case studies:

Case 1: Goods imported from China arrive at Mumbai port.

These goods are transported from Mumbai port (situated in Maharashtra state) to factory in Pune (situated in Maharashtra state).

This is an inter-State supply from China to Pune, but it is an intra-State movement from Mumbai to Pune. State-EWB will BE REQUIRED for this movement.

Case 2: Goods are sold from Lucknow (situated in UP state) by Supplier to Customer in Delhi with instructions for these goods to be delivered to job-worker in Noida (situated in UP state).

This is an inter-State supply from Lucknow to Delhi for the purposes of taxation but an intra-State movement within UP. State-EWB will BE REQUIRED for this movement.

Case 3: Goods installed in basement of building being sold to Landlord on termination of lease agreement.

EWB will NOT BE REQUIRED as there is ‘no movement’ in this supply.

Case 4: Contractor carrying portable crane to customer site, both located in same State, is intra-State movement.

EWB will NOT BE REQUIRED for this movement.

Case 5: Laptop carried by employee from Delhi to Bangalore for company work, this movement is not supply but is incidental to ‘services of employee to employer’ under schedule III.

EWB will NOT BE REQUIRED for this movement.

However, contract-staff carrying company-laptop not excluded from EWB requirement. Thus, if same laptop is being carried by contractual staff E-way bill would have been required.

Case 6: LPG cylinders transported from dealership to bottling plant of Oil Company, is ‘excluded’ from requirement.

EWB will NOT BE REQUIRED for this movement.

However, EWB will be required for movement of cylinders supplied by fabricator to Oil Company.

Sensys Technologies

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