Eway bill confusion

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If you're purchasing raw cotton from unregistered farmers and the consignment value exceeds £50,000, you, as the registered buyer, are responsible for generating an e-way bill. This applies even if the farmer arranges the transport. However, if individual purchases are kept below £50,000, an e-way bill may not be necessary, though raw cotton itself isn't GST-exempt.

Allauddin Patel

Allauddin Patel (Querist)

08 June 2025 Dear sir/ madam
My question is.
Farmers brings raw cotton to our factory through Tata ace or any other goods vehicle , we purchase raw cotton and make urd purchase bill(self invoice) on their names and gives to them with payment , do we need to generate e way bill also at that time ??

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 June 2025 If the raw cotton you are purchasing is GST-exempt unprocessed agricultural produce, an e-way bill is generally not required. Better to break the purchases below 50K each.

Message likes : 1 times

Ram Avtar Singh

Ram Avtar Singh (Expert)

09 June 2025 Is e-Way Bill Required for Raw Cotton from Farmers?
Raw cotton is not exempt from e-Way Bill requirements.

However, some key considerations apply:

f the supplier is an unregistered farmer:
If you (registered buyer) are causing the movement of goods, you are responsible for generating the e-Way Bill.

Since farmers are not required to be registered under GST, they are not liable to generate an e-Way Bill themselves.

Section 138 of CGST Rules says:

If the consignment value exceeds ₹50,000, and the movement is by a registered person, the registered person must generate the e-Way Bill.
Conditions when you must generate an e-Way Bill:
Consignment value > ₹50,000

You (the buyer/factory) are a registered person

You are responsible for transportation (e.g., your Tata Ace or hired vehicle is used)

In this case, you must generate the e-Way Bill, even though the seller (farmer) is unregistered.

Allauddin Patel

Allauddin Patel (Querist)

09 June 2025 Ram Avtar Singh sir ...
Farmers themselves arrange the transport and bring raw cotton to our factory....
Then we will see quality and purchase it

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