Understand value portion of E-Way Bill:

Question 1: Whether GST and other taxes will be considered while determining the threshold of Rs 50,000/-  of E-way bill (EWB)?

Solution 1: Consignment value means, value as mentioned on the invoice, bill of supply or delivery challan including the applicable tax also, however that value must exclude value of exempted goods.

Question 2: If goods are supplied in same truck, whether EWB would have to be generated even if value of each invoice individually is less than the threshold limit of Rs 5o,000/- but overall it crosses Rs. 5o,000/- ?

Solution 2: Rule 138(7) of CGST Rules provides that if consignor or consignee have not generated EWB and aggregate of consignment value of goods carried in the conveyance is more than Rs. 5o,000/-, the transporter has to generate EWB in case of interstate supply. Further, transporter may generate consolidated EWB on the basis of multiple separate EWB generated. However requirement of EWB is not applicable on the railway, air and vessel.

Question 3: Whether multiple invoice can be clubbed in one EWB? If yes, then to what extent?

Solution 3: It is value of goods which determines EWB required or not, therefore separate EWB is required to be generated for every individual invoice of corresponding consignment exceeds Rs. 5o,000/-.

Question 4: What happens if unregistered person (URP) supplying consignment for value more than 5o,000/- to the end user (unregistered)?

Solution 4: No EWB required if both seller and receiver is URP, because as per rule 138 EWB is required by registered person. However URP can generate EWB at his option by using ” enrolment for citizen” option at portal.

Question 5: Equipment costing Rs. looL moved interstate under a monthly lease of Rs 5L , for what amount EWB required ?

Solution 5: EWB is required for amount of monthly lease of Rs. 5L every month i.e. not for the entire value of the equipment.

Understand Distance and validity portion of E-Way Bill:

Question 6: What is maximum distance that can be provided in the E-Way Bill?

Solution 6: The maximum distance that can be provided in Part A of the EWB is 3oo okms.

Question 7: How to compute the validity of EWB in case the distance exceeds 3000 kms. For instance, the distance between Goa to Shillong is 3400 k approx ?

Solution 7: EWB may be generated for the maximum distance of 3000km. Hence in such cases. EWB has to be generated on the basis of approximate distance of 3000 kms. Validity for the same will be calculated accordingly. It is expected this problem of distance would be suitably increased.

Question 8: The validity of EWB is based on the distance the goods are being transported. How will the portal validate the distance between the source and destination of the goods?

Solution 8: There is no mechanism whereby the portal automatically calculates the distance between the source and the destination of the goods. Person preparing EWB has to mention distance in mandatory field in approximate figure and validity of such EWB shall be generated accordingly.

Question 9: What happens if EWB is generated but no movement takes place and if EWB is not cancelled?

Solution 9: IN case EWB is generated but no movement of goods took place, it may be cancelled within 24 hours from the time of its generation. However, if the same is not cancelled within 24 hours, then the system would not allowed the cancellation by consignor. But there is option to reject EWB by consignee in the common portal within 72 hours. If 72 hours lapsed then there is no mechanism to cancel EWB. So please be cautious while generating EWB.

Question 10: How to generate the EWB in case goods are to be moved to a weighbridge situated outside the factory and invoice cannot be issued unless goods are weighted.

Solution 1o: EWB is not required to be generated where the goods are to be transported up to a distance of 20 Km s for the purpose of weighment from the place of business of consignor to a weighbridge, or, form the weighbridge back to place of consignor. Please note that such movement must be supported by delivery challan.

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Company: Shrama Goel & Co LLP
Location: Delhi, New Delhi, IN
Member Since: 16 Sep 2017 | Total Posts: 24
I am member of ICAI since Novemer, 2011. Having experience in Taxation and public speaking. i also posted few videos on you tube for GST. View Full Profile

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2 responses to “10 New FAQs on E-way bill Value, Distance and Validity”

  1. CHANDER BHAN GOYAL says:

    IS ANY DISTANCE EXEMPTION IN ITRA STATE EWAY BILL

  2. Lalit Jain says:

    We are a sub contractor for a government contactor
    we are at Maharashtra and our work is going on at Karnataka.
    as per government norms a contract or subcontract is a service hence we billed with SAC code and tax is 12%
    In this case how can we generate e way bill for transportation of material and what we have to filled in rate of taxes.

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