E-way Bill a complete analysis

Intra-state E-way bill has been rolled out in many states and the same has been made applicable within the State of Punjab from 01.06.2018. Section 68 of the GST Act, 2017 read with Rule 138 of GST Rules, 2017 provides for furnishing of the information prior to commencement of movement of goods and generation of e-way bill. Various provisions of the said rule are discussed in this article.

1. Situations where Generation of E-way Bill under GST is required

Sub Rule 1 casts liability to “Furnish Information” in Part A on “Registered Person only” who causes movement of goods. Information must be furnished before commencement of movement of goods. Sub Rule 1 provides:

1.Where Movement caused:

(a) In relation to supply

(b) For reasons other than supply

(c) Due to inward supply from an unregistered person.

and consignment value exceeds Fifty thousand rupees.

2. Goods sent by Principle located in one state/UT to Job worker located in other state/UT irrespective of the value.

3. Interstate movement of Handicraft goods irrespective of the value.

E-way bill is to be generated on Form GST EWB-01 which contain two parts, where Part-A provides details of the consignor, consignee and details of goods, its value whereas Part-B provides for Transportation details like Transporter Name, GR No. & Vehicle Number. An e-way bill generated will be valid for a period of 15days for updating Part-B and movement can only commence after filing Part-B. If validity of the e-way bill expires, the goods are not supposed to be moved. However, under circumstance of ‘exceptional nature’, it can be extended by the Commissioner of the state.

E-way bill can be generated either by the supplier or by the recipient. Even the transporter can be authorized to generate e-way bill. Cases where the goods are supplied through e-commerce operator or a courier agency, the e-way bill can be generated by the said e-commerce operator or a courier agency on an authorization received from the consignor in Part-A.

E-way bill is required to be generated weather the movement is for supply or for the reasons other than supply. Even the transfer of goods from one premises of the dealer to other premises requires the generation of E-way bill if the value of such consignment exceeds Rs.50000/-. For computing the value of Rupees 50000/- value of goods shall mean the value as determined by Section 15 of the Act and also include the GST charged on the value but will exclude the value of exempted goods where the invoice is issued in respect of both taxable & exempt supplies.

Taxable Value of good + GST charged – value of exempt goods if increase Rs.50000/ — E-way bill required to be generated.

2. Generation of e-way bill under GST where combined value of goods in a conveyance exceeds Rs.50000/-

An important provision though been deferred by Notification No. 15/2018 dated 23.03.2018 is sub-rule (7) of Rule 138. Sub-rule (7) provides that where the consignor and consignee has not generated e-way bill being the value being less than Rupees fifty thousand but the value of the goods combined in a conveyance exceeds Rupees fifty thousand the transporter shall generate e-way bill on basis of the said invoices.

sub-rule 7 makes it clear that condition is applicable only for inter-state supply of goods and not where the goods are supplied within the state/UT. Duty to generate e-way bill under these circumstances is upon the transporter. However where the consignor delivers the goods in his own conveyance and steps into the shoes of transporter is required to generate e-way bill under this sub-rule is a debatable question.

3. Partial exemption from generation of e-way bill under GST

There are certain situations where the consignor is not required to generate e-way bill. Where the goods are transported from place of business of consignor to place of business of transporter for further transportation upto a distance of fifty kilometres Part-B of the e-way bill is not required to be generated the goods can be sent by generating Part-A only.

Similarly where the goods are sent for weighment upto a distance of 20kilimetres the e-way bill is not required to be generated provided the movement is accompanied by delivery challan.

4. Cases where goods of one invoice is being moved in multiple vehicles simultaneously

Where the goods are being transported in a semi knocked down or completely knocked down condition the e-way bill shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment and

• The supplier shall issue the complete invoice before dispatch of the first consignment;
• The supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
• Each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
• The original copy of the invoice shall be sent along with the last consignment.

So e-way bill has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

5. Situations where e-way bill under GST is not required even when the invoice value exceeds rupees fifty thousand.

There may be a situation where goods covered under a single invoice having value more than Rupees fifty thousand are transported in lots having individual value less than the required limit of rupees fifty thousand. In such like cases one may argue that the generation of e-way bill is not required as the value of single consignment does not increase Rupees fifty thousand.

Another situation can be where goods covered in a single invoice is required to be delivered at different units of consignee and the value of each consignment does not increase rupees fifty thousand though the invoice value is more than the limit of rupees fifty thousand.

6. Cancellation of e-way bill under GST

An e-way bill generated by mistake or cases where wrong particulars are entered in the e-way bill or where the goods are not transported, the e-way bill can be cancelled within a period of 24 hours of its generation.

7. “Bill to” “Ship to” transactions

Lot queries were asked on this type of transactions with respect to generation of e way bill. Earlier as per FAQs issued by department there was a specific question dealing this which required two e way bills to be generated if “Bill to” party and “Ship to” party are different legal entity or Same legal entity but in different states. However now this complexity is also removed as “Bill to” & “Ship to” fields are provided for in EWB-01 on portal.

8. Situations where generation of e-way under GST  bill is not required

(a) Where the value of consignment does not increase rupees fifty thousand.

(b) Where goods are transported by non-motorised conveynance.

(c) Used personal and household effect

(d) Where goods transported is treated as no supply under Schedule III of the Act.

(e) Where goods being transported are transit cargo from or to Nepal or Bhutan.

(f) Where empty cargo containers are being transported.

(g) Where goods are transported for weighment upto a distance of 20Km.

(h) Where exempted goods are transported subject to certain exceptions.

(i) Where goods being transported are specified in Annexure appended to Rule 138.