Line sales and GST

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This discussion clarifies the documentation requirements for businesses conducting 'line sales' where goods are sold from a commercial vehicle without pre-assigned buyers. To avoid penalties, goods should be transported under a delivery challan. A tax invoice with GST must be issued after the sale. An E-way bill is generally required if the goods' value exceeds £50,000 (or £100,000 in some states), and 'line sales' should be selected when generating it. E-way bills are not needed for line sales with a delivery note value below £50,000.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)
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27 May 2022 One of my friends is running a business, he is a manufacturer and retailer. He sells goods through line sales using a commercial vehicle. Line sale is nothing but taking goods in a vehicle and taking them to an unknown buyer of the goods. The moment they leave the factory, they will not know who will purchase what quantity of the goods. So preparing sales invoices and sending goods is not possible. What documents do they need to have in their vehicle to avoid any penalty from the commercial tax dept?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 May 2022 Take such goods under delivery challan. After sale issue tax invoice with GST.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)
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27 May 2022 Do we need to keep the E way bill in the vehicle?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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27 May 2022 Yes eway bill is necessary if the goods value on the vehicle is more than Rs. 50000 (or one lakhs as in some states). You will have to select line sales when generating eway bill

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)
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27 May 2022 If the delivery note value is less than 50,000/- in case of line sale, do we still need to raise the e way bill? One of the sales practitioners informed us that for line sales with delivery notes need to raise the e way bill if the value is less than 50,000/-.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 May 2022 No need of E way in case of less than 50,000.

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