Dr. Sanjiv Agarwal

Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.

Rule 138 of CGST Rules, 2017 provides that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for reasons other than supply”.

What is an e-way bill?

Rule 138 of CGST Rules, 2017 provides that, e-way bill is an electronic way bill which has to be generated by every registered person causing movement of goods of consignment value exceeding Rs. 50,000/-.

Such movement can be,

√ in relation to a supply

√ for reasons other than supply

√ due to inward supply from un registered person.

Who can generate an e-way bill?

  • E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person.
  • A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered persons or their transporters may also choose to generate an e-way bill.

This means an e-way bill can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

How to generate an e-way bill?

  • Every registered person shall furnish he information in relation to goods being transported in Part-A of EWB-01, electronically on the common portal.
  • Where the Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods then, he may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.

(For place of delivery, the pin code of place of delivery must be provided. For Transport Document number, the Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number must be provided.)

  • Upon its generation, a unique e-way bill number (EBN) shall be allocated which shall be available to the supplier, recipient, and the transporter.

Consolidated e-way bill

  • A consolidated e-way bill can be generated 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
  • A consolidated e-way bill may be generated by him in FORM GST EWB-02 on common portal prior to the movement of goods.

Validity of an e-way bill

  • Validity of an e-way bill depends upon the distance travelled by the goods being transported.
  • As per Rule 138(10) of CGST Rules, 2017, an e-way bill or a consolidated e-way bill generated shall be valid for the specified period from the relevant date, for the distance the goods have to be transported, as mentioned under:
Distance Validity period
Upto 100 km One day
For every 100 km or part thereof thereafter One additional day

 (“Relevant date” shall mean the date on which the e-way bill has been generated)

Cancellation of an e-way bill

If the good fails to be shipped on the date of generation, the e-way bill can be cancelled within 24 hours but if it is verified in transit then, no cancellation can be made.

Exceptions to e-way bill requirement

No e-way bill is required to be generated in the following cases:

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

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

c) Goods being transported from the 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 rule 138(14) ( of the SGST Rules, 2017 of the concerned State; and

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

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One response to “Basic Understanding of E-Way Bills”

  1. Praniti Verma says:

    When one consignment is delivered at two different locations, how does one raise an E way bill

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