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As another big move in GST implementation series government is all set to introduce E-Way Bill for movement of goods across the country. The much talked about E-way Bill will be rolled out across the country from 1st February 2018. This will become the common transit pass for the vehicle in each state.

As of now the e-way bill system has already been rolled out in the States of Karnataka, Rajasthan, Uttarakhand and Kerala. Also few states have also rolled out their own version of State E Way bill such as UP, Bihar, Gujarat etc. However all these state E Way bills will be replaced by GST E-Way bill on or Before June 01, 2018.

However as of now it is decided to implement the E Way Bill rules in two stages i.e. from Feb 01, 2018 for inter-state movement of goods. The states can opt to follow the e-way bill system anytime before 1st June 2018 and from June 01, 2018 for inter as well as intra state movement of goods E Way bill will become mandatory. Period up to 31st January 2018 will be used as trial period for all stakeholders.

E Way Bill in a summary:


E Way Bill General Rule

Goods value > Rs. 50,000, Any movement of by registered person or inward supply from unregistered person

Special Cases

Any interstate movement irrespective of value:

  • Any goods, from Principal to Job Worker
  • Handicraft goods from person exempted from registration

Who is liable to generate

Registered Person, Transporter, Principal or Person exempted from registration on case to case basis

For whom it is optional

Unregistered person until they are covered under special cases

From where to generate

http://e-waybill.nic.in, Android App, SMS, ASP Integration with web portal, using GST Suvidha Provider

Which form

EWB 01, which contains two parts:

Part A - Details of goods moved

Part B - Detail of vehicle

After filling both only, E Way Bill no. (EBN) can be generated

Validity of E Way Bill

1 Day for first 100 Km thereafter for every 100 Km or part thereof additional 1 day

Documents Required to generate

  • Invoice / Bill of Supply / Delivery Challan for consignment of goods
  • Transport by road through transporter : Transporter ID
  • Transport by road through owned / hired vehicle : Vehicle number
  • Transport by Rail / Air / Vessel : Transport document number, date of document

Documents / Devices required to carry during Transit

  • the invoice or bill of supply or delivery challan, as the case may be
  • a copy of the e-way bill or the EBN, either physically or
  • where notified by the Commissioner, EBN mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance

Exemption from E Way Bill

  • Goods specified in annexure to E Way rules
  • Goods transport form non motorized vehicle
  • Goods transport from port, airport, air cargo complex and land customs station to Inland container depot or Container Freight Station for Custom clearance
  • Transport in notified areas (till date no notification)

What are other forms

EWB-02 : Consolidated E Way bill (for transporter, multiple consignment in single vehicle)

EWB-03 : Summary report of Inspection by department of goods in transit

EWB-04: Intimation by transporter if vehicle is detained for more than 30 minutes

GST INV- 1 : For generating Invoice Reference Number (IRN)


Detailed Analysis:

Please note: We shall analyze the rules in totality as if these are applicable to Inter as well Intra State movement. However till June 01, 2018 applicability on Intra state is left at the option of each state.

What is E-Way Bill:

As mandated by the Government in terms of section 68 of the Central Goods and Services Tax Act read with rule 138 of the CGST rules 2017 E-way Bill is a document that is required to be carried by custodian of the goods while the goods are in transit. It can be generated from the Common Portal http://e-waybill.nic.in before commencement of movement of goods.

General Rule:

This has been provided vide Rule 138(1) which says:

'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 in Part A of FORM GST EWB-01, electronically, on the common portal.'

Analysis of above rule:

  • Any movement of goods whether as supply (as defined in Section 7 of CGST Act 2017) or other than supply (e.g. Sale return, Stock Transfer within state, Goods sent for Demo purpose etc) of consignment value > Rs. 50,000 will require E Way Bill
  • Meaning of Consignment Value should be taken as total invoice value
  • An inward supply from Unregistered person to Registered person of value > Rs. 50,000 also require E Way bill
  • Sub Rule one casts 'first liability' "to 'Furnish Information' in Part Aon 'Registered Person only' who causes movement of goods
  • Information must be furnished before commencement of movement of goods

Please note E Way bill will be generated through form EWB-01. This form has Two Parts as 'PART A 'this contains information w.r.t. Goods in movement and 'Part B' which contains details of Vehicle and/or Transporter.

It is also to be noted that this sub rule only ask for 'Furnishing of Information' in Part A, however E Way bill will be generated only after filling Part A and Part B both. Therefore this is the first step. Till now E Way bill is not generated only information has been filled.

Who is liable to generate and who has the option to Generate

Now for the purpose of E Way bill, movement can happen in two ways:

  • By Road with Service of Transporter
  • By Road without service of Transporter through Air, Vessel, Railways, Owned Vehicle or Hired Vehicle

Further there can be transaction where:

  • Supplier, Recipient both registered
  • Only one of them is registered
  • Both not registered

This can further be complicated by making each case as two cases considering:

  • Transporter is registered in GST
  • Transporter is not registered in GST

In light of 138 sub rule 2 and 3, we now try to solve the puzzle by creating a matrix of all possible cases:


Transaction

Recipient

Supplier

Transportation mode

Transporter

EWB-01

Part A

EWB-01

Part B

Intra / Inter State

Registered

Registered

By Road, through a Transporter

Registered

Registered Person who is making movement i.e in whose name Consignment Note is issued.

Transporter

Intra / Inter State

Registered

Registered

By Road, through a Transporter

Unregistered

Do

Do

Intra / Inter State

Registered

Registered

By Train/Vessel/ Hired or Owned Vehicle

-

Registered Person who is making movement i.e

- who has booked the parcel in case of Air/Vassel/Rail Or

- who owns the vehicle in case of movement in owned vehicle Or

- who has hired the vehicle

Registered Person who is making movement i.e

- who has booked the parcel in case of Air/Vassel/Rail Or

- who owns the vehicle in case of movement in owned vehicle Or

- who has hired the vehicle

             

Intra State

Registered

Unregistered

By Road, through a Transporter

Registered

Registered Person

Transporter

Intra State

Registered

Unregistered

By Road, through a Transporter

Unregistered

Registered Person

Transporter

Intra State

Registered

Unregistered

Train/Vessel/Hired/Owned Vehicle

-

Registered Person

Registered Person

             

Intra / Inter State

Unregistered

Registered

By Road, through a Transporter

Registered

Registered Person

Transporter

Intra / Inter State

Unregistered

Registered

By Road, through a Transporter

Unregistered

Registered Person

Transporter

Intra / Inter State

Unregistered

Registered

Train/Vessel/Hired/Owned Vehicle

-

Registered Person

Registered Person

             

Intra State

Unregistered

Unregistered

By Road, through a Transporter

Registered

Optional

Optional

Intra State

Unregistered

Unregistered

By Road, through a Transporter

Unregistered

Optional

Optional

Intra State

Unregistered

Unregistered

Train/Vessel/Hired/Owned Vehicle

-

Optional

Optional

Important points not to miss:

  • However Rule 138(1)(2)(3) cast first liability of E Way Bill on registered person who causes movement (as explained above in table), it may be noted that in case both registered party (supplier and recipient) practically E Way bill can be generated by any one of them.
  • First Proviso of Rule 138(3) gives an option to Registered Person Or the Transporter to generate the E Way Bill even if value of consignment is < Rs. 50,000
  • In case of an Unregistered party (URP) involved in transaction, Second proviso of Rule 138(3) gives option even to unregistered party to generate E Way bill. However currently for registering on E Way Bill portal GSTIN is required. However there is an option for unregistered Transporters to register with portal by generating Transporter ID with their Valid PAN. In our opinion option for unregistered person also will be activated soon.
  • In case of URP supplier, interstate transaction is not possible as they are not allowed to supply interstate unless specifically allowed under GST Law. Therefore in above table only Intra state is covered.

Special Cases where E Way Bill is mandatory irrespective of Value of consignment:

First and Second proviso to Rule 138(1) provides two special cases where E Way Bill generation is mandatory irrespective of value.

  • First Proviso: Interstate movement of goods from Principal to Job Worker
  • Second Proviso: Interstate movement of Handicraft Goods by a person who is exempted from requirement of registration under clauses (i) and (ii) of section 24

We shall cover this also through the same matrix as above to maintain the consistency in understanding:

Transaction

Recipient

Supplier

Transportation mode

Transporter

EWB-01

Part A

EWB-01

Part B

Only Inter State

Principal

Job Worker

By Road, through a Transporter

Registered

Principal

Transporter

Only Inter State

Principal

Job Worker

By Road, through a Transporter

Unregistered

Principal

Transporter

Only Inter State

Principal

Job Worker

Train/Vessel/Hired/ Owned

-

Principal

Principal

Only Inter State

-

Handicraft Goods by person exempted u/s 24 from Registration (H)

By Road, through a Transporter

Registered

Supplier

Transporter

Only Inter State

-

Handicraft Goods by person exempted u/s 24 from Registration (H)

By Road, through a Transporter

Unregistered

Supplier

Transporter

Only Inter State

-

Handicraft Goods by person exempted u/s 24 from Registration (H)

Train/Vessel/Hired/ Owned

-

Supplier

Supplier

Important points not to miss:

  • However respective proviso to Rule 138(1) cast first liability of E Way Bill on Principal / Person exempted from registration, (as explained above in table), it may be noted that in case both registered party practically E Way bill can be generated by any one of them.
  • Please note First proviso covers only interstate movement between principal and job worker. Return movement is not covered in first proviso. In our opinion return movement will be covered under main provision of Rule 138(1) as explained in above table. Therefore no E way bill applicable for return movement below consignment value Rs. 50,000
  • It is also to be noted both the proviso are for interstate movement only. In our opinion intrastate movement will be covered under main provision of Rule 138(1) as explained in above table. Therefore E-way bill in these cases will not be applicable if consignment value is < Rs. 50,000 and transaction is intrastate

Concept of Transporter ID:

Transporters are the main party who retains the main role in this entire show of E-Way Bill. For discharging the liability of E Way Bill a Transporter not required to have a GSTIN. Technically speaking under GST Law all transporters are required to be registered. Those who holds a GSTIN need not do anything they can discharge all their liabilities of E Way Bill by creating login through their GSTIN on E-Way Bill Portal.

However Section 35(2) read with Rule 58 makes it mandatory for all transporters who are not registered under GST to get registered by filing form ENR-01. Output of registering through this ENR-01 is nothing but Transporter ID.

This ID shall be required by every unregistered transporter after implementation of E-Way bill. Therefore practically while furnishing information in Part A of EWB-01 a person if using a transporter will mention the Transporter ID provided by his transporter. After this Transporter may login to E Way bill portal and complete the Part B of form by mentioning the vehicle number in which he is making movement of consignment covered under the form requested. Transporter will finally submit the form and generate the E-way bill number.

Please Note: Its only after filling of Part B, E Way bill can be generated.

Role of Transporter in E Way Bill

Below is the point wise applicability on transporters:

  • Filling of Part B for generation of E Way Bill: Main role of Transporter in generating E Way bill is as explained above. If vehicle number is not known in advance the transporter is required to fill Part B in each case where transporter is used for movement of goods.
  • Ultimate responsibility of E Way Bill Generation if not generated by anyone: Rule 138(7) cast the ultimate responsibility for E Way Bill generation on Transporter. If none of the party as required under provisions of Rule 138(1),(2)and (3) have discharged their liability of furnishing information in Part A of EWB-01, then at last Transporter has to fill Part A and Part B both basis invoice/bill of supply/delivery challan provided to him for transportation by the supplier.
  • Multiple consignments carried in single vehicle: In case 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 may be generated by him on the common portal prior to the movement of goods.
  • Change of Vehicle for goods during transit: Rule 138(5) cast another responsibility. If transporter transferring goods from one conveyance to another in the course of transit (due to accident of vehicle or any other reason) 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

Cancellation of E Way Bill:

Where an e-way bill has been generated, but:

  • Goods are either not transported at all or
  • Are not transported as per the details furnished in the e-way bill

E-way bill may be cancelled within 24 hours of generation of the E-way bill. However an E-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

Validity of E-way Bill:

Validity period for an e-way bill or a consolidated e-way bill shall be based on the distance:

  • Upto 100 Km - 1 Day
  • For every 100 km or part thereof thereafter - 1 Additional Day

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 twenty four hours.

In case of 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 GSTEWB-01.

Concept of Invoice Reference number :

As per Rule 138A (2): 'A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.'

This is an additional option given to registered person in case of taxable supply where a Tax invoice is issued. Using this option an IRN can be generated by filing form GST INV-1 on portal. However after generating, IRN will be valid for 30 days.

This will facilitate in two ways:

  • Information for E Way Bill generation under Part A of form EWB-01 shall be auto populated
  • No need to carry physical copy of Tax invoice during transit only IRN will be sufficient

Exemptions from E-Way Bill:

S. No.

Condition

Exemption

1

Goods transported are specified in Annexure

No E Way Bill

2

Goods are transported by a non-motorized conveyance

No E Way Bill

3

Goods transported:

FROM- Port, Airport, Air cargo complex and Land Customs Station
TO- An Inland Container Depot or a Container Freight Station
FOR- clearance by Customs

No E Way Bill

4

Movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State

No E Way Bill

     

5

Goods transported for distance < 10 KM within State or UT
FROM- Place of business of the consignor
TO- Place of business of the transporter
FOR- Further transportation

Part B of EWB-01
not required to be furnished

6

Goods transported for distance < 10 KM within State or UT finally
FROM- Place of business of the transporter
TO- Place of business of the consignor

Part B of EWB-01
not required to be furnished

Summary of all timelines in E Way Bill:

S. No.

Activity

Timeline

1

Furnishing information in EWB - Part A

Before commencement of such movement

2

Furnishing information in EWB - Part B

Before commencement of such movement

3

When to enter transport document details for rail/air/ship mode of transportation, as it is available only after submitting goods to the concerned authority?

(As per FAQ 2 issued by department)

Part-B has to be updated before movement of goods from the place of supplier to place of submission

E-way bill has to be updated with transport document details within 1 hour of submission and collection of transport document from rail/air/ship authority

4

Consolidated e-way bill in FORM GST EWB-02

Before commencement of such movement

5

Cancellation of E Way Bill

Within 24 hours of generation of the e-way
bill BUT before verification in transit

6

Validity of E Way Bill
(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 twenty four hours)

 
 

 - Upto 100 KMs

1 Day

 

 - For Every 100 KMs or Part thereafter

1 Additional Day

7

Rejection of E Way Bill by Recipient (No action within timeline will be deemed as acceptance)

Within 72 hours

8

Validity of Invoice Reference Number (IRN) generated through GST INV - 01

30 Days

9

Summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03

Within 24 hours of inspection

10

Final report of every inspection of goods in transit in Part B of FORM GST EWB-03

Within 3 days of such inspection

11

Uploading information regarding detention of vehicle by Transporter in FORM GST EWB-04

Where a vehicle intercepted and detained for a period > 30 minutes


Few Important and Must Read FAQs issued by department:

 Can I use the different modes of transportation to carry the goods having the e-way bill? If so, how to update the details?

Yes. One can transport the goods through different modes of transportation - Road, Rail, Air, Ship. However, always e-way bill needs to be updated with the latest mode of transportation or conveyance number accordingly. That is, at any point of time, the details of conveyance specified in the e-way bill on the portal should match with the details of conveyance through which goods are actually being transported.

How does the taxpayer generate e-way bill with Part-A and move the goods himself later?

The taxpayer can generate EWB with or without Part-B. Sometimes, the tax payer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time. E-way bill expects the user to enter transporter ID or vehicle number. So as he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate EWB. This indicates to the system that he is a transporter for that EWB.

How to enter multiple modes of transportation, i.e., road, rail, ship, air for the same e-way bill?

One e-way bill can go through multiple modes of transportation before reaching the destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using 'Update Vehicle Number'.

Let us assume the goods are moving from Cochin to Chandigarh through road, ship, air and road again. First, the tax payer generates the EWB by entering first stage of movement (by road) from his place to ship yard and enters the vehicle number. Next, he will submit the goods to ship yard and update the mode of transportation as Ship and transport document number on the e-way bill system. Next, after reaching Mumbai, the taxpayer or concerned transporter updates movement as road from ship to airport with vehicle number. Next the tax payer or transporter updates, using 'update vehicle number' option, the Airway Bill number. Again after reaching Delhi, he updates movement through road with vehicle number. This way, the e-way bill will be updated with multiple mode of transportation.

How does transporter come to know that particular e-way bill is assigned to him?

The transporter comes to know the EWBs assigned to him by the taxpayers for transportation, in one of the following ways:

  • The transporter can go to reports section and select 'EWB assigned to me for trans' and see the list.
  • The transporter can go to 'Update Vehicle No' and select 'Generator GSTIN' option and enter taxpayer GSTIN, who has assigned or likely to assign the EWBs to him.
  • The tax payer can contact and inform the transporter that the particular EWB is assigned to him.

What has to be done, if the validity of the e-way bill expires?

If validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of 'exceptional nature', it can be extended by the Commissioner of the state. The procedure for the same will be notified later.

How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously?

Where the goods are being transported in a semi knocked down or completely knocked down condition the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment and;

  • The supplier shall issue the complete invoice before dispatch of the first  consignment;
  • The supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
  • Each consignment shall be accompanied by copies of the corresponding  delivery challan along with a duly certified copy of the invoice; and
  • The original copy of the invoice shall be sent along with the last consignment Please note that multiple EWBs have to generate under this circumstance. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

How does the tax payer update his latest business name, address, mobile number or e-mail id in the e-way bill system?

EWB System in dependent on GST Common portal for tax payers registration details like legal name/trade name, business addresses, mobile number and e-mail id. EWB System will not allow tax payer to update these details directly. If tax payer changes these details at GST Common portal, it will be updated in EWB system within a day. Otherwise, the tax payer can update the same by selecting the option 'Update My GSTIN'.

Disclaimer

The above write up has been compiled from various provisions of GST Act and notifications/circular/order issued there under. The compilation may not be entirely correct for reader to reader due to different interpretations by different readers. The readers are advised to take into the consideration the prevailing legal position before acting on any of the comments in this write up. Readers are also requested to convey the correct position as per their interpretation of the relevant provisions of law, which shall be most welcome for correcting this write up.


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Category GST, Other Articles by - FCA. Praveen Gupta 



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