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E-Way Bill Generation, Validity, Cancellation and Compliance

What Is An E Way Bill Under GST

Lets undestand the e way bill meaning under GST

E-way bill generation is an electronic way bill required to be generated at the time of transport of goods by every registered person if the value of the consignment exceeds INR 50,000. 

It means if the value of one consignment (invoice/ bill/ delivery challan) exceeds Rupees Fifty Thousand, then an E-way bill is required to be eway bill generated.

An e-way bill is required to be carried by a person who is in charge of conveyance carrying any consignment of goods for which values exceeds as prescribed above

When should an E-way Bill generated?

Does everytime e-way bill requires? Lets understand eway bill requirement under GST.

An E-way bill shall be generated for -

  • Supply of goods with consideration 
  • Supply of goods without consideration
  • Inward supply received from an unregistered person 

Supply includes transport of goods not only on account of sales but also for any other reason like inter-branch transfer, purchase from an unregistered person and barter exchange of goods.

However, there are certain instances where an E-way bill is to be created even if value does not exceed INR 50,000.


- Inter-state transfer of goods by a Principal to Job-worker by Principal or registered job worker. 


- Inter-state transfer of handicraft goods by a dealer exempted from GST registration

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Modes of Generating an E-way Bill

An E-way Bill may be generated by a registered person / transporter through any of the following methods:


  • Using web based e way bill system i.e. httpss://ewaybill.nic.in (ewaybill nic in login)
  • Using SMS based facility
  • Using services of a GSP (GST Suvidha Provider)
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Who can generate an E-way Bill?

An E-way bill may be generated by – 

  • A registered person
  • unregistered person or 
  • A transporter  However, if a supply is made by an unregistered person to a registered person, the recipient of goods is responsible to generate E-way bill.
  • A transporter is responsible to generate E-way bill if the same has not been generated by a supplier.
  • In case of unregistered transporters, they will be provided with a Transporter ID on registering on eway bill portal.

Pr-requisites for generation of E-way Bill

  • Invoice / Bill of Supply / Delivery Challan
  • Transport by Road
  • Transporter’s ID or Vehicle number
  • Transport by other modes
  • Transporter ID, Transport document number and date

Validity of an E-way Bill

Validity of an e-way bill or a consolidated e-way bill is based on the distance the goods have to be transported. 

Validity of an e-way bill shall be calculated from the date of generation of e-way bill. An e-way bill shall be valid for the period calculated as follows –

Sr. No

Distance

Validity period

1

Up to 100 KM

1 Day

2

For every 100 KM or part thereof thereafter

1 Additional Day

In case of exceptional circumstances, where goods are not transported within the validity period, the transporter may update details in Part B and extend validity of e-way bill.

Such extension may be made before 4 hours or within 4 hours from the expiry of e-way bill.

Modification / Cancellation of E Way Bill

An e-way bill once generated cannot be modified except Part B which can be updated with transport details. 

In case incorrect information is entered while generating e-way bill, such e-way bill may be cancelled within 24 hours of generation. A new e-way bill shall be created with correct details. 

Unless, old e-way bill is cancelled, new e-way bill cannot be generated against same invoice. 

Portal restricts preparation of duplicate e-way bills. If an e-way bill is verified by any empowered Officer, then the same cannot be cancelled.

Rejection of an e-way bill

A recipient of goods can view details of e-way bill generated against him on the portal. 

The recipient of goods may reject an e-way bill within 72 hours of generation of e-way bill. 

If e-way bill is not cancelled within the specified time period, the same shall be deemed accepted.

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When an E-way Bill will not be generated?

1

As per Rule 138 of CGST Rules, an e-way is not required to be generated in the following situations –


* The goods mentioned below are transported –


* Liquefied petroleum gas for supply to household and non-domestic exempted category (NDEC) customers


* Kerosene oil sold under PDS


* Postal baggage transported by Department of Posts


* Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71)


*Jewellery, goldsmiths and silversmiths wares and other articles (Chapter 71)


*Currency


*Used personal and household effects


*Coral, unworked (0508) and worked coral (9601)


*Alcoholic liquor for human consumption


*Petroleum crude, high-speed diesel, Motor spirit (commonly known as petrol), natural gas, aviation turbine fuel


*When there is no supply as per provisions contained in Schedule III of the Act, E-way bill is not required.

2

Transport of goods from customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.

3

Goods transported by a non-motorized conveyance.

4

Transport of goods 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

5

Transport of goods under customs supervision or under customs seal

6

Transport of goods that are transit cargo from or to Nepal or Bhutan

7

Transport of exempted goods

8

Transport of goods by rails where Central Government, State Government or a local authority is acting as a consignor

9

Movement of goods caused by Ministry of defense acting as a Consignor

10

Transport of empty cargo containers

11

Transport of goods for weighment and distance is less than 20 Kms between the place of business of consigner and weighbridge. A delivery challan shall be made and carried during transportation.

12

Goods specified in schedule appended to notification no. 2/2017-Central Tax (Rate) dated 28.06.2017 is being transported, other than de-oiled cake

Note – Where the distance between consignor or consignee and the transporter is less than 50 Kms, Part B details may not be updated by the transporter.

Form GST EWB-01

E Way Bill Under GST


  • Part A contains basic details required for generation of an e-way bill. It contains details like GSTN of the recipient, place of delivery, invoice number and date along with value of goods including taxable value, tax value.
  • Part B contains vehicle details. Part B is required to be updated by the transporter if no details are available with the supplier.
    * Certain points to be considered while generating e-way bill –
    * HSN code shall be minimum 2 digits where turnover is below Rs. 5 crores and where turnover exceeds Rs 5 crores * HSN code shall be minimum of 4 digits
    * Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number
    * Pin code shall be mentioned in place of delivery section
    * In case of import of goods, bill of entry details shall be mentioned
    * Reason for transportation shall be selected from the predefined 10 reasons given on the portal, namely – supply, export or import, job work, SKD or CKD, recipient not known, line sales, sales return, exhibition or fairs, for own use or others.
    * A unique E-way Bill Number (RBN) is generated on generating an e-way bill. This e-way bill number is then allocated and made available to the supplier, recipient and transporter.

Compliance for Transporter

  • Where E-Way bill is not generated by consignor and value exceeds Rs. 50,000, E-Way bill shall be generated by the transporter 
  • Where a transporter transfers goods from one vehicle to another, he has update vehicle details in Part B of the E-Way bill 
  • Where multiple consignments are transferred in one vehicle, he may generate a consolidated E-Way bill in Form GST EWB-02 indicating details / number of all E-Way bills that are transported.

    • Reconciliation of E-way Bill & GSTR 1


    It is imperial to reconcile invoices as per GSTR 1 and e-way bill generated. There may be differences in both on account of various reasons as follows – 

    • E-way bills are issued for only those invoices whose value exceeds Rs. 50,000 whereas in GSTR 1 all sale / outward supply invoices are uploaded. 
    • E-way bill is issued for movement of goods that may be effected through delivery challans like goods sent on job work basis but the same is not reported in GSTR 1 
    • E-way bills are issued only for supply of goods and services whereas the GSTR 1 reports both goods as well as services 


    These are some of the reasons for difference in GSTR 1 and e-way bill. Thus, making it necessary to reconcile the same to account for any genuine error where e-way bill has not been generated.

    Conclusion: 

    From above, we understand what e-way bill is and how/ when a business should prepare an e-way bill. 

    One can use GSTHero and make e-way bill directly from the software without having to log into GST portal every time. 

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