E-WAY BILL UNDER GST – A SUMMARY

E-Way Bill (EWB) is an electronic document that contains two parts – Part A and Part B, can be generated on the e-Way Bill Portal and is required to be generated before causing movement of goods. Hence, EWB must be created before commencement of movement of goods with the only exception of movement of goods by Railway, EWB can be generated even after movement of goods. However, even in such case goods will not be delivered until EWB will be presented at the time of delivery.

Presently, the E-way Bill generation has become mandatory for inter-state movement of goods in excess of specified monetary limits by any mode of transport w.e.f 01.04.2018. The Government has proposed that even intra-state movement of goods would also be made mandatory w.e.f 15.04.2018, however no notification in this respect has yet been released.

The statutory provision in respect of E-way bill can be read as follows:

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—

(i)     in relation to a supply; or

(ii)    for reasons other than supply; or

(iii)   due to inward supply from an unregistered person

Shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal.

Details forming part of E-way Bill:

The E-Way Bill consist the following details in part A and part B respectively:

PART A:

  1. GSTIN of Suppliers & Recipient (URP, if unregistered)
  2. Place of Delivery (PIN Code of Place of Delivery)
  3. Document No. (Tax Invoice, Bill of Supply & Delivery Challan etc.)
  4. Document Date
  5. Value of Goods (Including Tax & Cess)
  6. HSN Wise Summary (if aggregate turnover up to 5 crores-2 digits & for more than 5 crores- 4 digits)
  7. Reason for Transportation (select from dropdown menu)

PARTB:

  1. Vehicle No. for Road
  2. Transport Document Number (GRN, Railway Receipt, Air Way Bill etc.)

The following activities would be performed by each stakeholder based on their involvement in movement of goods:

Stakeholder Goods Transported Form EWB
Supplier is registered and undertakes to movement of goods.

Supplier will generate EWB

 Through Transporter  Fill Part A
 Through own conveyance  Fill Part A & B
Recipient is registered and undertakes to transport. Recipient will generate EWB  Through Transporter  Fill Part A
 Through own conveyance  Fill Part A & B
Transporter of goods Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
Supplier: Unregistered

Recipient: Registered and known recipient.

Movement of goods deemed to be caused by registered recipient. Recipient will generate EWB.

Registration is mandatory to generate EWB either on GST portal or EWB common portal. So, only registered person can generate EWB and Un-registered person cannot generate EWB.

In case, supplier or recipient has not generated EWB and consignment value is more than Rs. 50,000 transporters will be responsible for generation of EWB. Where goods are supplies via ecommerce operator or courier agency, EWB can be generated by such ecommerce operator or courier agency.

Part B of e-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.

Mandatory requirement of E-way Bill

E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.

For the purposes of this rule, the consignment value of goods will be as declared in an invoice, a bill of supply or a delivery challan. The amount of Rs. 50,000/- would include the amount in respect of CGST/SGST/IGST. However, this amount would not take into consideration the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. Such EBN shall be valid for 15 days for updation of PART B of EWB-01. Alternatively, E-way bill can also be generated or cancelled through SMS and by Site-to-Site Integration (through API).

Validity of EWB :

The EWB will remain valid for the period described in the table based on the distance that cargo needs to travel:

S. No Distance Validity Period
For Normal Cargo
1 Up to 100 km One day
2 For every 100 km or part thereof thereafter One additional day
For Over-Dimensional Cargo
3 Up to 20 km One day
4 For every 20 km or part thereof thereafter One additional day

Commissioner may extend the validity for certain categories of specified goods.

The validity of EWB can be extended by transporter only in exceptional case, by updating Part B of EWB.

Period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill.

Cases where EWB is required even if consignment value is less than Rs. 50000/- :

For certain specified Goods, the E-way bill needs to be generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000:

  1. Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker,
  2. Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

Cases where Generation of E-Way Bill is not necessary:

In the following cases it is not necessary to generate e-Way Bill:

  1. The mode of transport is non-motor vehicle
  2. Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
  3. Goods transported under Customs supervision or under customs seal or Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
  4. Transit cargo transported to or from Nepal or Bhutan
  5. Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
  6. Empty Cargo containers are being transported
  7. Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery challan.
  8. Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
  9. Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
  10. Transport of certain specified goods- Includes the list of exempt supply of goods,

Special Issues in respect of E-way Bill:

  • In case multiple vehicles are used for transportation by the same as the  Goods transferred from one conveyance to other conveyance for any reason, details of new conveyance is required to be updated in PART B of EWB before such transfer either by Supplier, Recipient, Transporter.
  • In case the transporter is switched and the Part B is not filled, the Supplier, Recipient or transporter, may assign the EWB number to another registered or enrolled transporter. However, where the details of conveyance has been filed in Part B of EWB by transporter, such EWB cannot be assign to another transporter by supplier or recipient.
  • Where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.
  • Person in charge will carry following document with conveyance:
  • Invoice, Bill of supply or delivery challan
  • Copy of EWB or number of EWB.

Acceptance of EWB OR Cancellation/Modification of EWB:

Supplier or recipient shall communicate his acceptance or rejection of the consignment covered by EWB. within 72 hours or time of delivery of goods, whichever is earlier. In case no acceptance or rejection is communicated, it shall have deemed to be accepted.

EWB can be cancelled only within 24 hours of generation on EWB portal, only in case goods have not been verified as per Rule 138(B) in transit. Where goods have been verified as per Rule 138(B) in transit, the EWB cannot be cancelled.

Once EWB is generated, PART A of EWB cannot be edited, only PART B can be updated as per requirements.

Verification of documents and conveyances:

Commissioner or authorised officer can intercept any vehicle to verify EWB in physical or electronic form. Verification can also be done via Radio Frequency Identification device. Physical verification of conveyance can also be carried out.

On such interception for inspection, a summary report of every inspection of goods in transit shall be recorded online by the officer in Part A of FORM GST EWB-03 within 24 hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within 3 days of such inspection.

No further verification of conveyance will be done in case it is done at one place except in case where specific information is received.

Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.

Penalty for Not Carrying E-way Bill:

A taxable person, Registered person and any person, transports any taxable goods without E-way bill shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded, whichever is higher.

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