What is E-way Bill under GST?

As per Section 68 of the Goods and Services Tax Act read with Rule 138 it is mandatory for a person who is in charge of the conveyance of goods exceeding value Rs 50000 to carry an E-way bill. The concept of the E-way bill was introduced with the objective to avoid tax evasion, to ensure that the supplies made are legitimate and well documented. This article includes all the relevant details about the e-way bill.

1. What is an E-way Bill?

E-way bill also known as Electronic Bill is a mandatory document to be carried by the person who is in charge of the conveyance of goods of value exceeding Rs. 50,000, irrespective of the fact whether such movement of goods is in relation to supply or not. The person who causes the movement of such goods has to upload the information on the GST Portal prior to the commencement of the movement of the goods as specified in Part A of GST EWB-01. The E-way bill is generated on the e-way bill portal. The e-way bill will have a unique EBN (e-way bill number) which shall be available to the supplier, recipient and the transporter upon its generation.

2. When is the E-way Bill required to be generated?

The e-way bill shall be generated under the following circumstances:

(a) When there is a movement of goods of value exceeding Rs 50,000

(b) When there is an interstate transfer of goods by principal to a job worker.

(c) When there is an inter-state transfer of handicraft goods by a person who is exempted from taking GST Registration.

(d) When there is inter-branch transfer

The information is to be furnished by the person who causes the movement of the goods shall furnish the information of such goods before the commencement of the movement of goods in Part A of the Form GST EWB-01.

Who causes the movement of goods:

1. Supplier- When the supplier is registered and undertakes the transport of goods.
2. Recipient- When the recipient is registered and undertakes the transport or when the supplier is unregistered.

3. Who can generate an E-way bill?

E-way Bill can be generated by the following people:

1. A registered person as the supplier of goods:

(i) When the goods are transported by a registered person who is the consignor of the goods whether through his own vehicle or a hired vehicle, or a public conveyance by road such person is required to generate the E-way Bill by furnishing details in Part B of the Form GST EWB-01.

(ii) When the goods are transported by Air/ Vessel.

2. A registered person as the recipient of goods:

(i) When the goods are transported by a registered person who is the recipient of the goods whether through his own vehicle or a hired vehicle, or a public conveyance by road such person is required to generate the E-way Bill by furnishing details in Part B of the Form GST EWB-01.

(ii) When the movement of goods is caused by a supplier who is not registered to a recipient who is GST registered, in such a case the movement shall be deemed to have been caused by the recipient and the E-way will be generated by the recipient of goods.

(iii) When the goods are transported by Air/ Vessel

3. Transporter of the goods:

(i) In situations where the e-way bill is not generated by the registered person in such a case, the e-way bill can be generated by the transporter of the goods on the basis of the information furnished in Part-A by the registered person.

(ii) Where the movement of goods is caused by a person who is not registered through a transporter in such a case he or the transporter can generate e-way bill.

4. Validity period of e-way bill:

The validity period of e-way bill depends upon the distance the goods are to be transported. The validity period is to be counted from the time of generation.

Extension of the validity period of the e-way bill:

Due to the outbreak of COVID-19, the government has extended the validity of e-way bills. Generally, the e-way bill can be extended in the following cases:

1. The Commissioner may extend the validity of e-way bills of certain goods by notification of the recommendation of the Council.

2. The validity of the e-way bill can also be extended by the transporter in exceptional circumstances if the consignment doesn’t reach the destination due to exceptional circumstances. The validity can be extended before 8 hours and after 8 hours of the expiry of validity.

5. What is the time Limit to cancel the e-way bill?

It may be cancelled within 24 hours of generation or before it has been verified in transit whichever is earlier. Instances requiring cancellation are:

• Goods are not being transported

• Goods are not transported as per details in e-way bill

• Delay in commencement of transportation such that the validity of e-way bill will expire during the transit before reaching the destination.

6. What is the time limit for acceptance of e-way Bill?

The details of the e-way bill generated shall be communicated to the supplier/recipient on the common portal. The acceptance of the bill shall be made within the time limit or else the bill will be deemed to have been accepted. The time limit for the acceptance of the e-way bill is earlier of the following:

(i) the time of delivery of goods
(ii) within 72 hours from the details being made available in the portal.