E-Way Bill not required for Transportation of ‘Used Personal Vehicle’

| | , ,

There is the latest update for taxpayers i.e. E-Way Bill not required for Transportation of ‘Used Personal Vehicle’. The Kerala High Court recently ruled this. In this article, we will discuss the latest update of the E-Way Bill not required for Transportation of ‘Used Personal Vehicle’.

What is the E-Way Bill?

E-waybill refers to the Electronic Way bill. It is an electronic document generated on the GST portal permitting the movement of goods.

In other words, an E-Way bill is like a receipt and it contains information regarding the shipment of a consignment and other details including the name of the consignor (sender of goods), the consignee (receiver), the place of origin, and destination of the consignment, and the route accessed.

Furthermore, the Generation of E-Way bills is mandatory for all interstate and intrastate movement of goods having a value exceeding Rs.50,000/-. Thus, businesses mostly require generation E-Way bills to operate their businesses properly.

To know more about E-Way Bills, you can read our detailed guide here-E-way Bill Guide

Issue on E-Way Bill Requirement

E-Way Bill Requirement is mandatory for movement of goods having a value exceeding Rs. 50,000/-. Therefore, the state GST official of Kerala detained a Range Rover Car being transported from Coimbatore to Thiruvananthapuram. The reason for the detention was an absence of the E-Way Bill.

E-Way Bill not required for Transportation of ‘Used Personal Vehicle’

The Bench addressing the tax department recalled the similar case of KUN Motor Company. In that ruling, the bench stated, “We do not understand how the State could take a contention that if the car had been driven into the state of Kerala from the UT of Puducherry, then there could not have been detained under Section 129, since then there would have been no question of uploading of E-way bill. Furthermore, We are unable to understand how an intra-State sale would be converted to an inter-State sale merely for reasons of it being transported in the carriage.”

Take a call from Expert

The bench further noted that the impact of the tax is on supply rather than transportation. “In relation to the legislation on IGST, there is no distinction between road supply or a carriage.” The bench adds, that even the vehicle used for a negligible run, will have used personal effect.

The fact that the car was registered for the transaction was also emphasized. The bench stated the present case is identical to the previous decision.  However, The only exception is the shift from Puducherry to Coimbatore.

It also reminded that commodities that are classifiable as private and domestic are exempted from the requirement of the E-way bill under the GST law. As a result, it dismissed the tax department’s appeal.

GST collection in August 2021 crosses ₹1 Lakh Crore

Moreover, If you want any other guidance relating to GST Registration or  GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates narrating to your business.


Punjab GST collection rises by 20.41% in August 2021

No GST on World Economic Forum’s Liaison office


Leave a Comment