Electronic Way Bill (E-Way Bill) is a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal. It is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods and the details include name of consignor, consignee, point of origin of the consignment, its destination, and route.
In this article we are going to cover:-
Meaning & Relevance
Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates an E-way bill on the GST portal.
E-way bill is an electronic mechanism to ensure that:
→ There is a hassle-free movement of goods throughout the country
→ Acts as an effective tool to track the movement of goods
→ To control tax evasion in the Country.
The e-way bill system is applicable for both interstate transport of goods, & Intra State Supply of Goods. However, the applicability of the e-way bills for intra-state movement can be deferred by the respective state as per rule 138(14)(d).
The registered person or the transporter, as the case may be, may generate an E-way bill voluntarily even if the value of consignment is less than Rs. 50,000.
When & Who Is Required To Generate
- As per Rule 138(1) of CGST Rules, every registered person who causes movement of goods of consignment value exceeding Rs. 50,000:
→ In relation to a supply
→ For reasons other than supply
→Due to inward supply from an unregistered person
- E-commerce Operator or Courier Agency:
→ A registered person liable to generate an e-way bill can authorize the transporter, e-commerce operator or courier agency to furnish the details in Part A (Form GSTEWB-01) of the e-way bill.
- Job Work:
→ As per proviso to rule 138(1) where goods are being sent by a principal to the job worker located in another state, Principal or the Job worker (if registered) shall generate an e-way bill, irrespective of consignment value.
- Voluntary Generation:
→ A registered supplier may voluntarily generate an e-way bill even if the consignment value is less than Rs. 50,000.
- Handicraft Goods:
→ Where handicraft goods are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
Details To Be Furnished
|PART A||PART B|
|GSTIN of supplier||Vehicle Number for Road|
|Place of Dispatch||Transport Document Number / Defense Vehicle Number / Temporary Vehicle Registration Number / Nepal or Bhutan Vehicle Registration Number|
|GSTIN of Recipient|
|Place of Delivery|
|Value of Goods|
|Reasons for Transportation|
- GOODS TRANSPORTED BY ROAD
Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee
→ whether in his own conveyance or
→ a hired one or public conveyance, by road,
The registered person as a consignor or the recipient of supply as the consignee shall generate the e-way bill in Form GST EWB-01 electronically on the common portal after furnishing information in Part B of Form GST EWB-01.
- GOODS TRANSPORTED BY RAILWAYS
Where the goods are transported by railways, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of Form GST EWB-01.
Provided that where the goods are transported by railways, the railways shall not deliver the goods unless the e-way bill required under these rules is produced at the time of delivery.
- GOODS TRANSPORTED BY AIR/ VESSELS
Where the goods are transported by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of Form GST EWB-01.
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Relevance In GSTR-1
As per the E-Way Bill Rules, it appears that there is an option given to the supplier to utilize the details of the E-Way Bill for the purpose of filing Form GSTR-1. The information furnished in Part A of Form GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing the details in Form GSTR-1.
Cases Where Part-B Not Required
As per proviso given to Rule 138(3), where the goods are transported for a distance of up to 50 kms within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of Form GST EWB-01.
Consolidated E-way Bill
Where the consignor or the consignee has not generated the e-way bill in Form GST EWB-01 and the aggregate of the consignment value of goods carried in the conveyance is more than Rs. 50,000, the transporter, except in case of transportation of goods by railways, air and vessel, shall, in respect of the inter-State supply, generate the e-way bill in Form GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in Form GST EWB-02 on the common portal prior to the movement of goods.
Acceptance Or Rejection
- As per rule 138(11): The details of the e-way bill shall be made available to the supplier or recipient if registered. Such a supplier or recipient should communicate his acceptance or rejection of the consignment.
- Further, as per rule 138(12): In case such supplier or recipient does not communicate his acceptance or rejection within 72 hours or before delivery of goods whichever is earlier, it shall be deemed to be accepted.
Validity Of E-way Bill
|Type of Cargo||Distance||Validity Period|
|Cargo other than Over Dimensional Cargo||Upto 100 km||One day in cases|
|Cargo other than Over Dimensional Cargo||For every 100 km or part thereof thereafter||One additional day|
|Over Dimensional Cargo||Up to 20 km||One day in cases|
|Over Dimensional Cargo||For every 20 km or part thereof thereafter||One additional day|
Cases Where E-way Bill Is Not Required
E-way bill is not required to be generated in the following cases:
- Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017
- Where the goods are being transported by a non-motorized conveyance
- Where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs
- In respect of movement of goods within such areas as are notified under of rule 138(14)(d) of the State or Union territory GST Rules in that particular State or Union territory
- Where the goods (other than de-oiled cake), being transported, are exempt from tax vide Notification No. 2/2017 CT(R) dated 28.06.2017
- Where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel
- Where the supply of goods being transported is treated as no supply under Schedule III of the Act
- Where the goods are being transported – under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex, and land customs station or from one customs station or customs port to another customs station or customs port or under customs supervision or under customs seal
- Where the goods being transported are transit cargo from or to Nepal or Bhutan
- Where the goods being transported are exempt from tax under Notification No. 7/2017 CT (R) 28.06.2017 [Supply of goods by the CSD to the Unit Run Canteens or to the authorized customers and supply of goods by the Unit Run Canteens to the authorized customers] and Notification No. 26/2017 CT (R) 21.09.2017 [Supply of heavy water and nuclear fuels by Department of Atomic Energy to Nuclear Power Corporation of India Ltd. (NPCIL)]
- Any movement of goods caused by defense formation under Ministry of defense as a consignor or consignee
- Where the consignor of goods is the Central Government, Government of any State or a local authority for the transport of goods by rail
- Where empty cargo containers are being transported
- Where the goods are being transported up to a distance of 20 km from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55
- Where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply [N/N 26/2018 CT dated 13/06/2018]
Invoice Reference Number (IRN)
An IRN is a number that a GST registered taxpayer may generate from the e-way bill portal by uploading an invoice in Form GST INV- 01. This will be valid for a period of 30 days and can be used instead of a physical tax invoice.
Hence, IRN is a boon for transporters who transport multiple consignments, where otherwise the documentation would have been burdensome. IRN tries to ease the process of documentation to a great level. IRN also serves a dual purpose where on generating it, a taxpayer can get Part A of his E-way bill auto-populated.
Cancellation Of E-way Bill
Where an e-way bill has been generated, however, goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be canceled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill.
It is to be noted that an e-way bill cannot be canceled if it has been verified in transit in accordance with the provisions of rule 138B.
Legal Consequences On Non-Compliance Of E-way Bill
If e-way bills, wherever required are not issued in accordance with the provisions contained in rule 138 of the CGST Rules, the same will be considered as contravention of rules.
- As per sec 122 of the CGST Act, 2017 a taxable person who transports any taxable goods without the cover of specified documents (the e-way bill is one of the specified documents) shall be liable to a penalty of Rs. 10,000 or tax sought to be evaded (wherever applicable) whichever is greater.
- As per sec 129 of CGST act, 2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this act or the rules made thereunder, all such goods and conveyances used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.
Summary Of Applicable Rules & Forms
|Information to be furnished prior to commencement of movement of goods and generation of e-way bill||Form GST EWB-01|
|Documents and devices to be carried by a person-in-charge of a conveyance.||Form GST INV-1|
|Verification of documents and conveyances||
|Inspection and verification of goods||Form GST EWB-03|
|Facility for uploading information regarding detention of vehicle||Form GST EWB-04|
- Circular No. 47/21/2018 GST dated 08.06.2018
Transportation of Goods by Railway
|In the case of transportation of goods by railways, whether goods can be delivered even if the e-way bill is not produced at the time of delivery||As per proviso to Rule 138(2A) of the CGST Rules 2017, the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery.|
Transportation of Goods to Another State
|Where goods transit through another state while moving from one area in a state to another area in the same state||It may be noted that e-way bill generation is not dependent on whether a supply is inter-state or not, but on whether the movement of goods is inter-state or not. Therefore, if the goods transit through a second State while moving from one place in a State to another place in the same State, an e-way bill is required to be generated.|
Movement of goods from DTA unit to SEZ unit
|Where goods move from a DTA unit to an SEZ unit or vice versa located in the same State||Where goods move from a DTA unit to an SEZ unit or vice versa located in the same state, there is no requirement to generate an e-way bill, if the same has been exempted under rule 138(14)(d) of the CGST Rules 2017.|