Taxation - GST Ch 09: Invoicing Ewaybill - Test 3: answer key

Question 1 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. Vikramaditya Tech Labs LLP, a registered supplier in Bengaluru, dispatches several consignments in the first week of November 2026. On 1 November, it dispatches laptops to Aryan Steels Ltd in Pune with an invoice value of ₹42,000 plus IGST at 18%. The distance to Pune is 840 km. On the same day, it dispatches servers to Nandini Retail Ltd in Mumbai, invoiced at ₹1,20,000 plus IGST at 18%. The distance to Mumbai is 980 km, and the goods are over-dimensional cargo (ODC). The e-way bill for the Pune laptops was generated on 1 November at 2:00 PM, and the transporter updated Part B on 2 November at 10:00 AM. The e-way bill for the Mumbai servers was generated on 1 November at 3:00 PM, but Part B remains unfilled. On 2 November, it sends natural pearls worth ₹8,00,000 to a buyer in Surat via a regular truck. On 3 November, it sends damaged machinery worth ₹1,50,000 to a repair facility 30 km away in Chennai; this movement is not a supply. Furthermore, Vikramaditya has not filed its GSTR-3B for September and October 2026. It intends to dispatch a new consignment on 5 November 2026 and needs to generate a fresh e-way bill. All amounts stated include applicable taxes unless otherwise specified.

What is the consignment value of the laptops dispatched to Pune, and was an e-way bill mandatory?

1. ₹42,000, no e-way bill was mandatory.
2. ₹49,560, no e-way bill was mandatory. (correct answer)
3. ₹49,560, e-way bill was mandatory.
4. ₹50,000, e-way bill was mandatory.

Answer: B — ₹49,560, no e-way bill was mandatory.

Explanation. Consignment value includes the value of goods and the applicable tax. The invoice value is ₹42,000, and IGST at 18% is ₹7,560. Therefore, the total consignment value is ₹42,000 + ₹7,560 = ₹49,560. Since this value does not exceed the statutory threshold of ₹50,000, the generation of an e-way bill is not mandatory for this specific movement.

Where it goes wrong. Students often check the e-way bill threshold against the taxable value (₹42,000) rather than the consignment value including taxes.

Authority. Rule 138(1) of the CGST Rules, 2017

Question 2 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

What is the validity period of the e-way bill generated for the laptops dispatched to Pune?

1. 5 November 2026 midnight.
2. 6 November 2026 midnight.
3. 8 November 2026 midnight.
4. 7 November 2026 midnight. (correct answer)

Answer: D — 7 November 2026 midnight.

Explanation. The distance is 840 km. Under rule 138(10), for normal cargo, the validity is one day for the first 200 km and one additional day for every 200 km or part thereof. 840 km / 200 km = 4.2, which rounds up to 5 days. The validity starts from the date Part B is updated (2 November 2026 at 10:00 AM). Counting 5 days from 2 November ends at midnight on 7 November 2026.

Where it goes wrong. Students may calculate validity from the date of generation instead of the date Part B is updated.

Authority. Rule 138(10) of the CGST Rules, 2017

Question 3 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

What is the status of the e-way bill generated for the servers sent to Mumbai, given that Part B has not been updated?

1. It is valid for 49 days from generation even without Part B.
2. It is valid for 5 days from generation under the normal rule.
3. It is invalid for movement as Part B details are mandatory. (correct answer)
4. It is valid only if Part A is re-uploaded.

Answer: C — It is invalid for movement as Part B details are mandatory.

Explanation. An e-way bill is valid for movement of goods by road only when the information in Part B (transport details) is furnished. Since the transporter for the Mumbai servers has not filled Part B, the generated e-way bill is incomplete and invalid for the actual movement of the goods. The over-dimensional cargo validity calculation is irrelevant until Part B is filled.

Where it goes wrong. Students might calculate the 49-day validity for ODC and assume the document is valid for movement without checking Part B.

Authority. Rule 138(3) of the CGST Rules, 2017

Question 4 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Can Vikramaditya Tech Labs LLP generate the e-way bill for its new consignment on 5 November 2026, given its return filing default?

1. Yes, a grace period of 30 days is allowed.
2. No, it is blocked only if default exceeds 6 months.
3. Yes, if the recipient accepts the consignment.
4. No, the facility is blocked due to 2 consecutive default periods. (correct answer)

Answer: D — No, the facility is blocked due to 2 consecutive default periods.

Explanation. Rule 138E restricts a person from furnishing information in Part A of EWB-01 if they have not furnished returns for 2 consecutive tax periods. Vikramaditya is a regular taxpayer who has not filed GSTR-3B for September and October 2026. This constitutes 2 consecutive default periods, resulting in the blocking of the e-way bill generation facility for outward movement.

Where it goes wrong. Students often think default must be for many months or that the recipient's acceptance can override the system block.

Authority. Rule 138E of the CGST Rules, 2017

Question 5 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. Aryan Steels Ltd, a registered person in Maharashtra, has filed its GST returns up to August 2026 but has not filed GSTR-3B for September and October 2026. Its supplier, Vikramaditya Tech Labs LLP, also has a pending default for the same periods. Aryan Steels wants to dispatch a consignment of TMT bars to Nandini Real Estates Pvt Ltd on 5 November 2026. Nandini Real Estates is a composition taxpayer and has failed to furnish its statement for two consecutive quarters. Shree Transports, the transporter, is handling this movement over a distance of 300 km. The consignment value is ₹2,50,000. On the same day, a consignment of iron ore is moving from Visakhapatnam to Nagpur via ship and then by road (multimodal shipment). The consignment value is ₹70,000, and the total distance is 1,200 km. Additionally, a consignment of kerosene oil sold under the Public Distribution System (PDS) is moving from Mumbai to Pune. Another consignment of 10,000 kg of de-oiled cake (which is exempt from GST) with a consignment value of ₹60,000 is moving from Aryan Steels to a client in Gujarat. Aryan Steels also plans to transport a consignment of empty LPG cylinders to a bottling plant 40 km away. All amounts given are the consignment values including applicable taxes, where relevant.

In the transaction between Aryan Steels Ltd and Nandini Real Estates Pvt Ltd, who is blocked from generating the e-way bill as a supplier?

1. Both Aryan Steels and Nandini Real Estates.
2. Nandini Real Estates only.
3. Aryan Steels only. (correct answer)
4. Neither, as the transporter will generate it.

Answer: C — Aryan Steels only.

Explanation. Rule 138E blocks the e-way bill generation facility for outward movement of goods of a defaulting supplier. Aryan Steels has defaulted for 2 consecutive tax periods (September and October 2026), so its generation facility is blocked. Nandini Real Estates, being the recipient (even though a defaulting composition dealer), is not generating the e-way bill as a supplier for this inward movement.

Where it goes wrong. Students may assume the default of the recipient blocks the transaction or that the transporter's involvement bypasses the block.

Authority. Rule 138E of the CGST Rules, 2017

Question 6 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

What is the validity period of the e-way bill for the multimodal shipment of iron ore from Visakhapatnam to Nagpur?

1. 6 days.
2. 20 days.
3. 60 days. (correct answer)
4. 120 days.

Answer: C — 60 days.

Explanation. For a multimodal shipment where at least one leg involves transport by ship, the validity is one day for the first 20 km and one additional day for every 20 km or part thereof. The total distance is 1,200 km. 1,200 / 20 = 60 days. Therefore, the e-way bill is valid for 60 days from the relevant date.

Where it goes wrong. Students might apply the normal 1 day per 200 km rule (resulting in 6 days) instead of the specific 20 km rule for multimodal shipments.

Authority. Rule 138(10) of the CGST Rules, 2017

Question 7 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Is an e-way bill required for the consignment of kerosene oil sold under the Public Distribution System?

1. No, as it is a petroleum product.
2. Yes, as the value exceeds ₹50,000.
3. Yes, only if moved inter-State.
4. No, kerosene sold under PDS is exempt from e-way bill. (correct answer)

Answer: D — No, kerosene sold under PDS is exempt from e-way bill.

Explanation. Rule 138(14) lists specific goods that are exempt from the mandatory requirement of generating an e-way bill. Kerosene oil sold under the Public Distribution System (PDS) is specifically included in this list. Therefore, irrespective of the consignment value, an e-way bill is not required for this movement.

Where it goes wrong. Students may apply the general ₹50,000 threshold or confuse it with other petroleum products like petrol or diesel.

Authority. Rule 138(14) of the CGST Rules, 2017

Question 8 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Does the movement of de-oiled cake to Gujarat require an e-way bill?

1. Yes, de-oiled cake is excluded from the exemption for exempt goods. (correct answer)
2. No, as it is exempt from GST.
3. No, as the value is below the threshold.
4. Yes, because it is an inter-State movement.

Answer: A — Yes, de-oiled cake is excluded from the exemption for exempt goods.

Explanation. Under rule 138(14)(e), goods exempt from tax are generally exempt from the e-way bill requirement. However, de-oiled cake is explicitly excluded from this exemption. Since the consignment value is ₹60,000 (exceeding ₹50,000), an e-way bill is mandatory for the movement of de-oiled cake.

Where it goes wrong. Students might broadly assume all exempt goods are exempt from e-way bills, missing the specific exception for de-oiled cake.

Authority. Rule 138(14) of the CGST Rules, 2017

Question 9 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A consignment consists of taxable goods valued at ₹45,000 and exempt goods valued at ₹5,000. IGST is charged at 18% on the taxable goods. What is the consignment value for the purpose of generating an e-way bill?

1. ₹50,000.
2. ₹53,100. (correct answer)
3. ₹59,000.
4. ₹45,000.

Answer: B — ₹53,100.

Explanation. Consignment value includes the value of taxable goods plus applicable taxes. The value of exempt goods is excluded. Taxable value is ₹45,000, and tax at 18% is ₹8,100. The total consignment value is ₹45,000 + ₹8,100 = ₹53,100. The ₹5,000 exempt value is not added.

Where it goes wrong. Students often include the value of exempt goods in the consignment value calculation.

Authority. Rule 138(1) of the CGST Rules, 2017

Question 10 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered supplier hands over goods to an unregistered transporter for transportation by road. The transporter has enrolled on the e-way bill portal and obtained a TRANSIN. Who is responsible for generating the e-way bill?

1. Either the supplier or the transporter can generate it. (correct answer)
2. The registered supplier must generate it.
3. The unregistered transporter must generate it.
4. The recipient must generate it if known.

Answer: A — Either the supplier or the transporter can generate it.

Explanation. Rule 138(3) provides that where the registered person does not generate the e-way bill and hands over the goods to a transporter, the transporter generates it. However, the registered person can also choose to generate it. Since the transporter has a TRANSIN, they are authorized to generate it. Thus, either party can generate the document.

Where it goes wrong. Students may think the unregistered status of the transporter completely prohibits them from generating the e-way bill.

Authority. Rule 138(3) of the CGST Rules, 2017

Question 11 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A consignment is transported 40 km within the State from the consignor's place of business to the transporter's place of business for further transportation. Is it mandatory to furnish Part B details of the e-way bill for this movement?

1. Yes, Part B is always mandatory for any road movement.
2. No, Part B is not required for up to 50 km within the State for this purpose. (correct answer)
3. Yes, only if the consignment value exceeds ₹1,00,000.
4. No, Part B is never required for intra-State movement.

Answer: B — No, Part B is not required for up to 50 km within the State for this purpose.

Explanation. The third proviso to rule 138(3) states that the details of conveyance may not be furnished in Part B of the e-way bill where the goods are transported for a distance of up to 50 km within the State from the consignor's place of business to the transporter's place of business for further transportation.

Where it goes wrong. Students might apply the general rule that Part B is mandatory for all road movements.

Authority. Rule 138(3) of the CGST Rules, 2017

Question 12 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An e-way bill was generated on 1 November 2026 and was valid until 5 November 2026. The vehicle broke down on 4 November 2026, and the transporter updated the details and extended the validity on 6 November 2026. Is the extension valid?

1. No, the extension must be done within 8 hours of expiry. (correct answer)
2. Yes, extension can be done anytime before the final delivery.
3. Yes, as breakdown is an exceptional circumstance.
4. No, extensions are not allowed after the validity expires.

Answer: A — No, the extension must be done within 8 hours of expiry.

Explanation. Rule 138(10) allows the transporter to extend the validity in exceptional circumstances. However, the validity can be extended only within 8 hours from the time of its expiry. The e-way bill expired at midnight on 5 November 2026. The extension on 6 November 2026 is beyond the 8-hour window, making it invalid.

Where it goes wrong. Students often assume that exceptional circumstances allow the extension at any later date.

Authority. Rule 138(10) of the CGST Rules, 2017

Question 13 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Which of the following qualifies as over-dimensional cargo for determining the validity period of an e-way bill?

1. Cargo weighing more than 10,000 kg.
2. Cargo requiring special permits.
3. Cargo carried as a single indivisible unit exceeding dimensional limits. (correct answer)
4. Cargo transported in multiple batches.

Answer: C — Cargo carried as a single indivisible unit exceeding dimensional limits.

Explanation. Over-dimensional cargo is defined as cargo carried as a single indivisible unit which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989. Weight alone or the need for special permits does not automatically classify it as over-dimensional cargo for e-way bill purposes.

Where it goes wrong. Students may confuse heavy cargo or cargo requiring special permits with the specific statutory definition of over-dimensional cargo.

Authority. Rule 138(10) of the CGST Rules, 2017

Question 14 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A consignment of value ₹60,000 is moved 25 km from the consignor's business place to a weighbridge for weighing and then back to the business place. Is an e-way bill required for this movement?

1. No, movement to a weighbridge is exempt.
2. Yes, exceeds the 20 km exemption limit for weighbridges. (correct answer)
3. Yes, only if the consignment value exceeds ₹50,000.
4. No, as the goods are returned to the original place.

Answer: B — Yes, exceeds the 20 km exemption limit for weighbridges.

Explanation. Rule 138(14)(n) exempts the movement of goods up to a distance of 20 km from the place of business to a weighbridge and back. Since the distance here is 25 km, it exceeds the 20 km limit. Given the consignment value is ₹60,000 (above ₹50,000), an e-way bill is mandatory for this movement.

Where it goes wrong. Students may remember the weighbridge exemption but overlook the strict 20 km distance limit.

Authority. Rule 138(14) of the CGST Rules, 2017

Question 15 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Where goods are supplied through an e-commerce operator, who is permitted to furnish the information in Part A of Form GST EWB-01?

1. Only the registered supplier.
2. Only the recipient.
3. The transporter on behalf of the e-commerce operator.
4. The e-commerce operator on authorization from the consignor. (correct answer)

Answer: D — The e-commerce operator on authorization from the consignor.

Explanation. The second proviso to rule 138(1) provides that information in Part A may be furnished by the e-commerce operator or courier agency, where the goods to be transported are supplied through such an e-commerce operator or courier agency, on an authorization received from the consignor.

Where it goes wrong. Students may assume only the supplier or transporter can ever furnish Part A details.

Authority. Rule 138(1) of the CGST Rules, 2017

Question 16 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An e-way bill was generated on 1 November 2026. The conveyance was intercepted and inspected by a proper officer on 2 November 2026. Can the e-way bill be cancelled on 3 November 2026?

1. No, because it has been inspected in transit. (correct answer)
2. Yes, within 24 hours of generation.
3. Yes, within 24 hours of inspection.
4. No, because 24 hours have lapsed.

Answer: A — No, because it has been inspected in transit.

Explanation. Rule 138(9) allows cancellation of an e-way bill within 24 hours of generation. However, the first proviso states that an e-way bill cannot be cancelled if it has been inspected in transit in accordance with rule 138B. Since the conveyance was inspected on 2 November 2026, cancellation is barred regardless of the 24-hour window.

Where it goes wrong. Students may focus only on the 24-hour time limit and ignore the absolute bar on cancellation once inspected in transit.

Authority. Rule 138(9) of the CGST Rules, 2017

Question 17 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An e-way bill for a normal cargo is generated on 1 November 2026 at 11:00 PM. The distance to be travelled is 250 km. What is the validity period?

1. 1 day.
2. 2 days. (correct answer)
3. 3 days.
4. 4 days.

Answer: B — 2 days.

Explanation. Under rule 138(10), validity is 1 day for up to 200 km and 1 additional day for every 200 km or part thereof. For 250 km, it is 1 day (first 200 km) + 1 day (remaining 50 km) = 2 days. The relevant date is the date of generation (1 November). The validity expires at midnight of the day immediately following the 2-day period, which is 3 November 2026.

Where it goes wrong. Students may miscalculate the 'part thereof' rule or count from the time of generation rather than midnight.

Authority. Rule 138(10) of the CGST Rules, 2017

Question 18 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered person transports goods of consignment value ₹80,000 using a bullock cart for a distance of 10 km. Is an e-way bill required?

1. Yes, as the value exceeds ₹50,000.
2. Yes, as it is a supply.
3. No, as the goods are transported by a non-motorized conveyance. (correct answer)
4. No, as the distance is less than 20 km.

Answer: C — No, as the goods are transported by a non-motorized conveyance.

Explanation. Rule 138(14)(b) specifically exempts the requirement of an e-way bill where the goods are being transported by a non-motorized conveyance. A bullock cart is a non-motorized conveyance. Therefore, despite the consignment value exceeding ₹50,000, no e-way bill is required.

Where it goes wrong. Students may blindly apply the ₹50,000 threshold without checking the specific exemptions for non-motorized transport.

Authority. Rule 138(14) of the CGST Rules, 2017

Question 19 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A taxpayer's GST registration has been suspended. Can they generate an e-way bill for an outward supply?

1. No, a suspended GSTIN cannot generate an e-way bill as a supplier. (correct answer)
2. Yes, as suspension does not affect e-way bill generation.
3. Yes, if they have filed all pending returns.
4. No, they must surrender the registration first.

Answer: A — No, a suspended GSTIN cannot generate an e-way bill as a supplier.

Explanation. Rule 138E restricts e-way bill generation for a registered person whose registration has been suspended under rule 21A. A suspended GSTIN cannot generate an e-way bill as a supplier for outward movement. However, they may still be able to receive goods where the e-way bill is generated by the counterparty.

Where it goes wrong. Students may confuse suspension with cancellation or assume the facility remains active.

Authority. Rule 138E of the CGST Rules, 2017

Question 20 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An e-way bill was generated on 1 August 2026. Due to logistical delays, the transporter updated the Part B details on 20 August 2026. Is the e-way bill valid for movement?

1. Yes, the validity starts from the date of Part B update.
2. No, the e-way bill is automatically cancelled after 10 days.
3. Yes, as the transporter can update Part B anytime within 30 days.
4. No, the unique EWB number is valid for only 15 days for updating Part B. (correct answer)

Answer: D — No, the unique EWB number is valid for only 15 days for updating Part B.

Explanation. The second proviso to rule 138(9) states that the unique EWB number generated is valid for a period of 15 days for updation of Part B. Since the e-way bill was generated on 1 August 2026, Part B had to be updated by 16 August 2026. Updating it on 20 August 2026 is beyond the permitted window, rendering the e-way bill invalid.

Where it goes wrong. Students may think Part B can be updated at any time before the actual movement without a strict upper limit.

Authority. Rule 138(9) of the CGST Rules, 2017