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In transition from earlier Indirect Taxes to GST, the another step from Government is to Introduce E-way bill under GST to ensure that goods being transported comply with the GST Law and as an effective tool to track movement of goods and check tax evasion.

The generation of E-way bill for transportation of goods is optional from 16th January 2018 to 31st January 2018, however, it has been made mandatory starting from 1st Feb 2018 for Inter-State transportation (i.e. from one state to another) and shall be made mandatory for Intra-State Transportation (i.e. within state) from 1st June 2018.

Let's understand E-way bill in detail.

Q.1 What is E-way bill?

An E-way bill (Electronic Way Bill) is a receipt or 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.

Q.2 When E-way bill is to be generated?

As per Rule 138 of the CGST Rules, 2017, every registered person who causes movement of goods of consignment value (Invoice Value) of more than Rs. 50000/-

  1. In relation to supply; or,
  2. For reasons other than supply (for e.g. Sales returns, exhibitions or fairs, for own use, sale on approval basis ,etc.); or,
  3. For inward supply from unregistered person

Shall, prior to the commencement of movement of goods is required to furnish information for such goods in Part - A of E-way bill.

Further it has been provided that-

  1. Where goods are sent by a principal located in one State to a job worker located in any other State; or,
  2. Where handicraft goods are transported from one State to another;

The E-way bill shall be generated by the Principal/respective person, irrespective of the value of the consignment

In other words, in above 2 cases E-way bill has to be generated even if the value of consignment is less than 50,000/-

Q.3 Who should generate the E-way bill and Why?

E-way bill is to be generated by the consignor or consignee himself if the transportation is being done in own/hired conveyance or by railways by air or by Vessel. Where neither the consignor nor consignee generates the E-way bill and the value of goods is more than Rs.50,000/- it shall be the responsibility of the transporter to generate it.

Q.4 How E-way bill is to be generated?

The E-way bill can be generated from E-way bill by filing up form GST EWB - 01.

The form contains two parts:

In Part - A details of goods to be moved is to be mentioned, while in

Part - B details of Vehicle carrying such goods is to be mentioned.

Q.5 What is the validity of E-way bill?

The E-way bill shall be validup to 24 hours from the time it is generated for the distance of up to 100 Kms.For every 100 Kms. thereafter, the E-way bill shall be valid for additional 24 hours.

Further, if 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.

Q.6 What if Multiple Consignments are carried in a single vehicle?

An E-way bill has to be prepared for every consignment where the value of the consignment exceeds Rs.50,000/-. Where multiple consignments of varying values (per consignment) are carried in a single vehicle, E-way bill needs to be mandatorily generated only for those consignments whose value exceeds Rs.50,000/-.

For multiple consignments being carried in the same vehicle, the transporter has to prepare a consolidated E-way bill in form GST EWB-02 by indicating serial number of each E-way bill, prior to commencement of transport of goods.

Q.7 What if Same consignment is carried in multiple vehicle?

There is always a possibility that multiple vehicles are used for carrying the same consignment to its destination or unforeseen exigencies may require the consignments to be carried in a different conveyance than the original one. In such cases, the 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 the conveyance in the E-way bill on the common portal in Part-B of FORM GST EWB-01

Q.8 What documents are required to be carried during Transportation?

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

Q.9 Are there any exceptions to the E-way bill requirement?

Yes, No E-way bill is required to be generated in the following cases where:-

a) Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017;

b) Goods being transported by a non-motorized conveyance;

c) Goods being transported from the port, airport, air cargo complex and land customs stationto an inland container depot or a container freight station for clearance by Customs;

d) In respect of movement of goods within such areas as are notified under rule 138(14)(d) of the SGST Rules, 2017 of the concerned State; and

e) Consignment value less than Rs. 50,000/-

Q.10 What would be the consequences if E-way bill is not generated or furnished?

A taxable person who transports any taxable goods without the cover of specified documents (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 whichever is greater.

The E-way bill provisions aim to remove the ills of the erstwhile way bill system prevailing under VAT in different states, which was a major contributor to the bottlenecks at the check posts. Moreover different states prescribed different E-way bill rules which made compliance difficult. The E-way bill provisions under GST will bring in a uniform E-way bill rule which will be applicable throughout the country.

The Author is a IFRS certified Chartered Accountant and can be reached at

CAclubindia's WhatsApp Groups Link


Published by

CA Ankit Jain
(IFRS/Ind-AS Professional)
Category GST   Report

27 Likes   2 Shares   18891 Views


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