E-Way Bill under GST 1


E-Way Bill is an electronic system (through Internet or SMS mode) to report movement of goods from supplier to recipient either by supplier or by recipient or by transporter to the government before such movement.

This is not a new concept. Earlier, in state VAT laws, it was a mandatory requirement to report movement of goods from one state to another state.

However, E-Way bill is little different from earlier system because it is not restricted only for one state to another; it is a mandatory requirement for movement of goods from even one city to another city; or from one street to another street; or from one shop to another shop in a same street where motorized vehicle involved for such movement.

Introduction on E-Way Bill under GST

  • E-Way bill is required for movement of goods of consignment value exceeding Rs 50,000/-. (However, it is not restricted for consignment having value less than or equal to Rs 50,000/-).
    • However in following cases, E-way Bill is mandatory without checking monetary limit:
      • Where goods are sent by a principal located in one State to a job worker located in any other State
      • where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24.

  • E-Way bill is required in case of :
    1. Supply of goods;
    2. Supply of goods for reasons other than supply;
    3. Inward supply from an unregistered person

  • It is required to be submitted by registered person who causes movement of goods. In case, supplier of goods is an un-registered person, recipient of goods will be deemed as the person causing movement of goods.

  • It needs to be completed and generated before commencement of movement of goods and to be carried with vehicle as mandatory document during transit.

  • E-Way bill not required for movement of specified goods. It includes mostly exempted goods, however this list contain some taxable items too. {for complete list, please refer List of Goods where E-Way Bill not required for Transportation}

  • E-Way bill is required only where movement of goods through motorized vehicle.

It means movement through Pull-cart, etc. either by human or by livestock is exempted under E-Way Bill rules.


  • E-way bill not required where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.

What to include in value of Rs 50,000/-

The consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment.

It also includes the central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document.

However, it shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods


Procedure to be followed under E-Way Bill rules

Information regarding movement of goods has to be submitted through online portal of GSTN. Form GST EWB-01 is prescribed for such compliance. This form is divided into two parts i.e. PART- A and PART-B.

PART-A contains all the information on invoice of goods except vehicle number.

PART- B requires details of vehicle carrying goods mentioned in invoice.


 

Who will file information in Part – A and Part – B

PART- A

  • If supplier and recipient both are registered, PART-A to be filed by supplier
  • If Supplier is registered and recipient is un-registered, PART-A to be filed by supplier
  • If Supplier is Un-registered and recipient is Registered, PART-A to be filed by recipient where recipient is known at the time of commencement of the movement of goods.
  • If Supplier is Un-registered and recipient is not known at the time of commencement of movement of goods, such un-registered supplier will be liable to complete this form. However, if he transports the goods through transporter, then transporter may furnish this form on his own account.
  • Where the goods are transported through railways or by air or by vessel, PART-A may be filed either by consignor or the recipient of the supply as consignee.

However, in following cases, authorization to file information in Part – A can be outsourced as per given below:-

  • The transporter, on an authorization received from the registered person, may furnish information 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.
  • Where the goods to be transported are supplied through an ecommerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal.

PART-B

Completion of Part – B is not just a requirement to complete GST EWB Form, however, this is an additional obligation to generate E-Way Bill by the same person who will complete Part- B of the form. In case, vehicle is hired one, responsibility for Part-B and generation of E-way Bill lies upon the registered person (supplier or recipient).

Following are two cases of transportation to decide responsibility of completion of PART-B and generation of E-Way Bill

Case 1 : Where Vehicle is owned/hired by registered supplier or registered recipient for transportation via Road or transportation through railways or by air or by vessel

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 by railways or by air or by vessel, the said person or the recipient will 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.

An obligation has been provided for Railways that the railways shall not deliver the goods unless the e-way bill required under these rules is produced at the time of delivery

Transported/transportation/transport/movement of goods by rail/railways does not include cases where leasing of parcel space by Railways takes place.

Case 2 : Where goods are handed over to transporter for transport of goods by ROAD. 

Where goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part A of FORM GST EWB-01 on the common portal.

The e-way bill shall be generated by the transporter on the said portal by completing information in Part B of FORM GST EWB-01.

Concept of Assignment of responsibility for completing Part-B

The consignor or the recipient, who has furnished the information in Part A of FORM GST EWB-01, or the transporter, may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part B of FORM GST EWB-01 for further movement of the consignment

Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter.


Generation of E-Way Bill

Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available on the common portal to:

  • the supplier,
  • the recipient and
  • the transporter

Validity of E-Way Bill Number:

Validity of an e-way bill or a consolidated e-way bill number is based on distance for transportation of goods as per below matrix:

In case, Other than Over Dimensional Cargo

Sr. No.

Distance

Validity period

1.

Upto 100 km

One day

2.

For every 100 km or part thereof thereafter

One additional day

In new rules, such one day will be expired at midnight of the day immediately following the date of generation of e-way bill.

In case of Over Dimensional Cargo

“Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988). In this case, validity period is separately specified as per table below:

Sr. No.

Distance

Validity period

1.

Upto 20 km

One day

2.

For every 20 km or part thereof thereafter

One additional day

 

What if it is not possible to transport goods within validity period?

Where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.


Is there any obligation on recipient of goods WHERE PART-A has been submitted by Supplier of such goods?

E-way bill system is created in such manner that it could confirm the status of such bills from the recipient of goods to avoid fake generation of e-way bills.

The details of e-way bill shall be made available to the registered recipient, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

Where such recipient 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.


Whether it is required to generate separate E-way bills for each transit State/UT till completion of transportation?

E-way bill number generated for one journey is valid for every transit State/UT, so, there is no requirement to generate separate E-way bills. One E-way bill will be valid till completion of transportation.


What if goods shifted from original vehicle to another vehicle due to any reason during transit?

Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01.

However, It is not required to update details in case shifting of goods from original vehicle is for the purpose of delivery to consignee and place of consignee is located within the radius of fifty kilometers in the same State or UT from the place of transporter.

On the same line of above provision, where the place of such transporter is located within the radius of fifty kilometers in the same State or UT from the place of business of supplier, there is no requirement to generate E-way Bill for such part trip. However, if this is not the case, E-way Bill shall be generated from the place of business of supplier and all the provisions in relation to timing, validity of way bill, shifting of goods etc. will be applicable from that place.


Special Provision for Transporters transporting multiple consignments in single vehicle:

After generation of E-Way Bill Number for each consignment being transported in one conveyance, the transporter may indicate the serial number of e-way bills 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.


What if consignor and consignee have not generated FORM GST EWB-01 and goods handed over to transporter:

Where the consignor or the consignee have not generated FORM GST EWB-01 and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate 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.

Where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.


Cancellation of E-Way Bill Number:

An E-way bill number can be cancelled in case :

  • where transportation of goods cancelled due to any reason; or
  • where goods are not transported as per the details furnished in the e-way bill

Such cancellation is allowed within 24 hours from the generation of e-way bill.

Where vehicle has been verified by government officials during transit, E-way Bill number cannot be cancelled after such verification.


Is there any time limit to complete Part-B after submission of Part-A of Form EWB-01 ?

After submission of details in Part-A, a unique number is generated by the web portal. This number remains valid for 15 days (Fifteen days) from the time of generation. It means, actual transportation can be effected within Fifteen days from the time of submission of Part-A. If Part-B not completed within such Fifteen days, Part-A needs to be re-submitted afresh by such supplier or recipient, as the case may be.


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