Eway bill confusion

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Allauddin Patel (Querist)
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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)
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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.

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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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)
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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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