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The concept of “waybill” or “border check post” existed under various state VAT laws to check and prevent movement of goods without payment of VAT. Similarly, under GST regime, Central Govt. has empowered itself u/s 68 of CGST Act to introduce mechanism to prevent movement of goods without payment of GST.
Consequently, Govt. came up with concept of Electronic Way Bill (also known as e-way bill). The Central Govt., through CBEC has issued Notification 27/2017, laying down rules in respect of e-way bill.

In this article, the attempt has been made to summarize said notification in lucid language for understanding by business owners and business enablers.

#1 Applicability

No e-way bill is required for following cases:

(a) Where the goods being transported are specified in Annexure to the Notification 27/2017 (majorly food, dairy and essential products);

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

(c) Where the goods are 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; and

(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 Goods and Services Tax Rules of the concerned State.

#2 Who need to file FORM GST EWB-01?

1. Consignor of Goods (Registered Person) or Consignee of Goods (Registered Person) will electronically generate e-way bill by furnishing information relating to the goods to be transported in FORM GST EWB-01.

2. If the e-way bill is generated neither by Consignor nor by Consignee and the goods are handed over to transporter, then, Transporter must generate e-way bill. However, transporter is not responsible to generate an e-way bill in case of transport by railway, by air or by vessel.

3. Where the Consigner of Goods is Unregistered Person, the e-way bill shall be generated by such person, transporter or Consignee who is Registered Person (if consignee is known at time of transport).

4. Where the goods are transported within the State or UT from the place of business of the consignor to the place of business of the transporter for further transportation for less than 10 kms., details in Part B of FORM GST EWB-01 need not be filled but Part A has to be filled.

Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

#3 Responsibilities Casted on Transporters

Under the e-way bill mechanism significant responsibilities are placed on Transporters for the goods being carried in their conveyance. Following are the responsibilities placed apart from those mentioned above:

1. Any 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 conveyance in the e-way bill on the common portal. However, this is not required where the goods are transported for a distance of less than 10 kms within the State or UT from the place of business of the transporter to the place of business of the final consignee.

2. In case where multiple consignments are being transported in one vehicle, transporter may generate consolidated e-way bill in FORM GST EWB-02 which would indicate the serial number of e-way bills generated in respect of each consignment.

3. In a scenario where value of goods of different Consignors or Consignees is below Rs. 50,000/- and they had not generated e-way bill but total value of all the consignment in a vehicle is exceeding Rs. 50,000/-, the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan and may also generate a consolidated e-way bill in FORM GST EWB-02.

#4 Timing of generating E-way Bill

The E-way bill in FORM GST EWB-01 and FORM GST EWB-02 has to be filed before commencement of movement of goods by Road, by Railway, by Air or by Vessel.

#5 Validity of E-way Bill

1. Cancellation – In case the e-way bill is generated but later goods are not transported or nature of goods to be transported is changed, the e-way bill can be cancelled within 24 hours of generation. This facility is not available, if e-way bill has been verified in transit by relevant authority.

2. Validity – An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned below:

#6 Role of Recipient of Consignment

The details of e-way bill will be made available to recipient, who shall communicate his acceptance or rejection. If recipient does not communicate his rejection within 72 hours, it will be taken as deemed acceptance.

The e-way bill generated, as per GST Rules of any State shall be valid in every State and Union territory. Therefore, One Tax of this One Nation aims to remove the redundancy of compliance enabling seamless movement of goods at the same time ensuring tax is not evaded.

The e-way bill mechanism is expected to be rolled out from October. Though the complexity and unfamiliarity of procedures remains primary concern of businesses, the business organizations armed with right mix of technology and professionals would be in better position to avoid costly errors. 

For deeper discussions on how this issue can affect your business, you can reach us at ersteadvisory@gmail.com

Disclaimer: This article is for the purpose of general awareness and does not represent professional opinion of the author.

Read Here : How E way bill will be compulsory?


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Chartered Accountant having more than three years of experience in one of the 'Big4' consulting firms, I have assisted multinational companies in international taxation and intra-group pricing (transfer pricing) consulting. I have assisted - unicorn start-ups (like a fantasy gaming company, dati View Full Profile

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July 2024