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1. What is an E-Way Bill?

E-Way Bill is an electronic way bill for movement of goods which can be generated on the E-Way Bill portal i.e. www.ewaybillgst.gov.in. (Notification no. 09/2018- Central Tax dated 23 January 2018). Transport of goods of more than Rs. 50,000 (Single Invoice/bill/delivery challan) in value in a vehicle can be made by a registered person only with an E-Way bill. Alternatively, E-Way bill can also be generated or cancelled through SMS, Android App and by Site-to-Site Integration (through API). When an E-Way bill is generated, a unique E-Way bill number (EBN) is allocated and is made available to the supplier, recipient, and the transporter.

2. When E-Way bill is required to be issued?

As per rule 138(1) of CGST Rules 2017 E-Way bill is required to be generated when there is movement of goods exceeding consignment value of Rs. 50,000 (either each invoice or in aggregate of all invoices in a vehicle/ conveyance):

• in relation to a supply, or
• for reasons other than supply, or
• due to inward supply from an unregistered person.

For this purpose, supply may be for consideration in the course of business or not and also includes supply made without consideration.

The consignment value of the goods shall be the value declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

However, E-Way bill is required to be generated in following cases even if the value of consignment is Rs.50,000/- or less (Third and Fourth Proviso to Rule 138(1) of CGST Rules 2017):

• Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker.
• Inter-State movement of Handicraft goods by dealer exempted from GST registration.

3. Who are responsible for generating E-Way bill?

• Registered person- E- Way bill shall be generated by a registered person if the movement is made by or to a registered person.

• Transporter- may also generate the E- Way bill, if supplier has not generated the same.

• Unregistered person- may also generate the E- Way bill. However, if supply is made by unregistered person to registered person, the registered person shall be responsible to generate the E-Way bill as if he is the supplier.

4. How E-Way is required to be filled?

E-Way bill form GST EWB-01 contains of two parts - Part-A and Part-B. It is required to be filled as follows:

Who

Part

To be filled

Registered person

A

Customer details before commencement of movement of goods.

Transporter (on authorization from the registered person)

A

Customer details before commencement of movement of goods.

E commerce operator/ Courier agency (on authorization from consignor)

A

Customer details before commencement of movement of goods.

Registered person if he is consignor or consignee (by own or hired conveyance) or if he is the recipient

B

Transport details before commencement of movement of goods.

Registered person being supplier or recipient (if goods are transported by railways/ air/ vessel)

A

B

Customer details before commencement of movement of goods.

Transport details before or after commencement of movement of goods.

Consignor/ recipient/ transporter (in case of transfer of goods from one conveyance to another) See note 1.

B

Transport details to be updated before such transfer and further movement of goods.

Transporter (if consignor or consignee has not generated the E-Way bill and consignment value exceeds Rs.50,000)

A

B

Customer details before commencement of movement of goods.

Transport details before or after commencement of movement of goods.

Note 1: The consignor or recipient or transporter may assign the E-Way bill no. to another registered or enrolled transporter for updating the information in Part-B of form GST EWB-01 for further movement of the consignment. But after updation of the details of the conveyance by the transporter in Part-B of form GST EWB-01, the consignor or recipient shall not be allowed to assign the E-Way bill number to another transporter.

Where the goods are transported for a distance of upto 50 Kms. within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

The unique number generated shall be valid for a period of 15 days for updation of Part-B of form GST-EWB-01.

Consolidated E-Way bill form GST EWB-02 may be generated by the transporter in case where multiple consignments are intended to be transported in one conveyance. In this case, transporter may indicate the serial number of all the E Way bills generated in respect of each consignment and may generate a consolidated E-Way bill in form GST EWB-02.

5. What is the validity of E-Way bill?

An E-Way bill or consolidated E-Way bill shall be valid for the following period:

S. No. Distance Validity period from relevant date
a Upto 100 Km.  One day (other than over dimensional cargo).
b For every 100 Km or part thereafter

One additional day (other than over dimensional cargo).

c Upto 20 Km.

One day in case of over dimensional cargo.

d For every 20 Km or part thereafter      

One additional day in case of over dimensional cargo.

The transporter may extend the validity period of the E-Way bill in case goods are not transported within the validity period of the E-Way bill in case of exceptional circumstances including trans-shipment.

Relevant date means the date on which E-Way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of E-Way bill.

6. Where E-Way bill is not required?

E-Way bill is not required to be generated in following cases:

I. As per Rule 138(14)) of CGST Rules, 2018:

a) where the goods being transported are specified in Annexure;

b) where the goods are being transported by a non-motorised conveyance;

c) where the goods are being transported 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;

d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory;

e) where the 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.

f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;

g) where the supply of goods being transported is treated as no supply under Schedule III of the Act;

h) where the goods are being transported -

(i) 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, or

(ii) under customs supervision or under customs seal;

i) where the goods being transported are transit cargo from or to Nepal or Bhutan;

j) where the goods being transported are exempt from tax under notification No. 7/2017-Central Tax (Rate), dated 28th June 2017 as amended from time to time and notification No. 26/2017-Central Tax (Rate), dated the 21st September, 2017;

k) any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee;

l) where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail;

m) where empty cargo containers are being transported; and

n) where the goods are being transported upto a distance of 20 Kms. 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 issued in accordance with rule 55.

o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.

Goods specified in annexure are as follows:

S. No. Description of Goods
i. Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers.
ii. Kerosene oil sold under PDS
iii. Postal baggage transported by Department of Posts
iv. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal
v. Jewellery, goldsmiths' and silversmiths' wares and other articles
vi. Currency
vii. Used personal and household effects
viii. Coral, unworked (0508) and worked coral (9601)

7. Can E-Way bill be cancelled?

E-Way bill cab be cancelled electronically on the common portal within 24 hours of its generation, if the goods are either not transported or are not transported as per the details furnished in the E-Way bill. However E-Way can’t be cancelled if it has been verified in transit.

8. What are the documents to accompany E-Way bill?

In case of domestic goods, the E-Way bill shall be accompanied by:

(a) the taxable invoice or
(b) bill of supply or
(c) delivery challan.

In case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01.

However, the Commissioner may notify the circumstances in which the person-in-charge of the conveyance may carry the following documents instead of the e-way bill:

(a) tax invoice or bill of supply or bill of entry; or

(b) a delivery challan, where the goods are transported for reasons other than by way of supply.

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.

9. What is the procedure for inspection and verification of goods in transit?

The same is governed by Rule 138C of CGST (Sixth Amendment) Rules 2018.

A 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 twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.

The Commissioner, or any other officer authorized by him, may, on sufficient grounds extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted.

Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently.

10. Can information regarding detention of vehicles be uploaded on the website?

Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal. (Rule 138D of CGST (Sixth Amendment) Rules 2018).

11. Case study

Company A has taken a machine required for operations in the State of Chhattisgarh from Company B on operating lease. The operations in Chhattisgarh state have completed, and the Company has successfully bagged similar project in Odisha State. Now the Company A is planning to shift the machine from Chhattisgarh State to Odisha State.

What are the documents which are required to be accompanied with the E-Way bill in this case i.e. transfer of the machine from State of Chhattisgarh to State of Odisha?

The E Way bill shall be accompanied by Delivery challan. The same is supported by Rule 55 of CGST (Sixth Amendment) Rules 2018 which provides that in case of transportation of goods without issue of invoice for the following purposes-

(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

(b) transportation of goods for job work,

(c) transportation of goods for reasons other than by way of supply, or

(d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation.

Who shall issue the delivery challan in this case?

Company B shall issue the Delivery challan, being the supplier of the machine (which is to be shifted) from Chhattisgarh to Odisha.

However, Company A may also issue a delivery challan as consignor (Chhattisgarh GSTIN) to consignee (Odisha GSTIN) while taking a no-objection letter from Company B (regarding the transfer).

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