1. E Way Bill-Introduction
  • E Way Bill is an electronic document generated by way of a digital interface.
  • It is a compliance mechanism where the person causing movement of goods uploads the relevant information on the web portal.
  • The person in charge of the conveyance shall carry a copy of the e-Way Bill along with invoice or bill of supply or delivery challan, as the case may be.
  • The E way bill generated under Goods and Service Tax act shall be valid in every State and Union Territory.
  • Rule 138 of Central Goods and Service Tax Rules, 2017 provides for the E-way bill mechanism.

 

  1. When E Way Bill to be generated
  • E Way bill to be generated prior to the commencement of movement of goods by a person causing movement of goods either for supply (eg. Sale, Purchase) or for reasons other than supply (eg. Goods sent to Job Worker, Completely knocked down condition, demo purpose, exhibition, sale or return basis).
  • E Way bill is mandatory in case the consignment value of the goods intended to be transported is more than Rs.50,000/-. Consignment Value shall be the Transaction Value of the goods i.e. the value declared on invoice/Bill of Supply/Delivery Challan and taxes charged on the invoice such as CGST, SGST, IGST and Cess if any. (Consignment Value =Transaction Value + All taxes). However, in cases where the invoice is issued for both taxable as well as exempt supply of goods, the consignment value shall exclude the value of exempt supply of goods.
  • E Way bill is to be generated for Inter-state movement of goods which will be implemented with effect from 1st April 2018. The states may choose their own timings for implementation of e way bill for intra-state movement of goods on any date before 1June, 2018.
  • E Way Bill to be generated for each invoice issued.
  1. Stakeholders of E Way Bill

The following are four key stakeholders of the e-Way Bill:

  • Suppliers – Generate the e-Way Bills and reject the e-Way Bills generated by other parties against his/her name, if it does not belong to him/her.
  • Recipients – Generate the e-Way Bills and reject the e-Way Bills generated by other parties against his/her name, if it does not belong to him/her.
  • Transporters – Generate the e-Way Bills, consolidated e-Way Bills and update the vehicle numbers for the e-Way Bills assigned to him for transportation by the taxpayers.
  • Department Officers – Verify the e-Way Bills and consignments carried with the e-Way Bills.
  1. Common portal for e-way Bill

e way bill

  1. Consequences if E Way Bill is not generated
  • E Way Bill, wherever required if not generated in accordance with the provisions contained in Rule 138 of CGST Rules, 2017, the same will be considered a contravention of rules and shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded whichever is higher. Also, the goods shall be liable to detention or seizure.
  1. E Way Bill specimen

Form GST EWB 01

  • E way bill is divided into two parts:

PART A – consists of GSTIN of the recipient, Place of delivery, Invoice/Challan No. and Date, Value of goods, HSN Code, Reason for transportation and Transport Document Number.

PART B – consists of transporter details such as Vehicle No.

The specimen of Form EWB 01 is as follows:

e way

 

  1. Who should generate the E Way Bill
  • E Way bill is to be generated by a Registered Person before the commencement of movement of goods. EWB is said to be generated when the information in both Part A and Part B is furnished.
  • The E Way Bill can be generated either by the supplier, recipient or transporter.

 

Transportation of goods by Road:

  1. EWB should be generated for transportation of goods by road whether in own conveyance, hired or public conveyance. The EWB shall not be valid for movement of goods by road unless the information in Part B is furnished on the common portal.
  2. However, where the goods are handed over to the transporter, the supplier or the recipient may furnish information in part A and the e way bill shall be generated by the transporter by furnishing information related to the transporter in Part-B of the EWB.

Transportation of goods by Railway, airways and vessels:

  1. EWB is to be generated by Supplier or the recipient who shall either before or after the commencement of movement of goods furnish the information in part B.
  2. Where the goods are transported by railways, the goods shall be delivered by railways only when the EWB is produced at the time of delivery.
  • E Way Bill in case goods are supplied by an unregistered person: Goods supplied by an unregistered person to a recipient who is registered, the movement shall be said to be caused by such recipient who is registered person if the recipient is known at the time of commencement of movement of goods. The recipient shall be liable to generate EWB.

Different scenario is as follows:

Situation

Movement caused by

Impact

Recipient is

unknown

Unregistered person E-way bill not required;

However, the supplier has

an option to generate e-way

bill under “citizen” option

on the e-way bill portal

Recipient is known

and is unregistered

Unregistered person E-way bill not required; However, the supplier has an option to generate e-way bill under “citizen” option on the e-way bill portal
Recipient is known

and is registered

Deemed to be caused by

the Registered recipient

Recipient to generate e-way

bill

  1. Acceptance and Rejection of E Way Bill

The details of e-way bill generated shall be made available to the-

(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been

furnished by the recipient or the transporter; or

(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter,

on the common portal, and the supplier or the recipient, as the case may be, shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

In case, the person to whom the information in Part-A is made available does not communicate his acceptance or rejection within seventy-two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

  1. Validity Period of E Way Bill

Distance

Validity Period

Less than 100 Km

One day

For every 100 km thereafter

Additional one day

 

  • Under exceptional circumstances, the validity of the EWB can be extended by updating the details in part B of the EWB.
  • The validity period shall be counted from the time at which the EWB is generated. Each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of an e-way bill.
  • Validity Period will start once the vehicle number is updated in Part B of the EWB.
  1. Cancellation of E Way Bill
  • E-Way Bill once generated, cannot be modified or edited. It has to be cancelled and a fresh e-way bill has to be generated.
  • E Way Bill can be cancelled where the goods are not transported or are not transported as per the details furnished in the e way bill.
  • The cancellation should be made within 24 hours of its generation through a Facilitation Center notified by the Commissioner.
  • Cancellation of E way bill cannot be made if the e way has been verified in transit.
  1. Change of Conveyance and transfer of goods en-route

Before transfer and movement of goods and change of conveyance en route, the details of the vehicle should be updated in Part B of the EWB by the supplier, or the recipient or the transporter as the case may be.

In the following cases, generation of E-Way Bill is not required:

  1. Transport of following goods:
    Sr no Description of Goods
    1 Liquefied petroleum gas for supply to household and non-domestic exempted category (NDEC) customers
    2 Kerosene oil sold under PDS
    3 Postal baggage transported by Department of Posts
    4 Natural or cultured pearls and precious or semiprecious stones; precious metals and metals clad with precious metal (Chapter 71)
    5 Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71)
    6 Currency
    7 Used personal and household effects
    8 Coral, unworked (0508) and worked coral (9601)
  2. Transportation of goods by a non-motorized conveyance (cycle, walking etc.)
  3. Transportation of goods 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.
  1. Goods 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 and, -under customs supervision or under customs seal.
  1. Goods, other than de-oiled cake, being transported are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate) dated the 28th June 2017.
  1. Transportation of alcoholic liquor for human consumption, petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel.
  1. Supply of goods treated as no supply under Schedule III to CGST Act, 2017.
  2. Goods being transported are Transit Cargo from Nepal to Bhutan.
  3. Goods transported are exempt from tax.
  4. Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee.
  1. The consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail.
  1. empty cargo containers are being transported.
  2. goods are being transported up to a distance of twenty kilometres 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.
  1. Compulsory generation of E-Way Bill

In the following cases, e way bill has to be compulsorily generated irrespective of the

consignment value (i.e. even if the consignment value is less than Rs. 50,000/-):

  • Goods sent by Principal located in one State or Union Territory to a Job worker located in any other state or Union Territory, the e-way bill to be generated either by Principal or Job Worker.
  • Transport of Handicraft Goods from one state 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 23.