“An e-way bill is a key anti-tax evasion measure and is a crucial part of the GST architecture. Since, implementation will dissuade tax evaders from under reporting transactions.”

# As per Notification dated 7th March’ 18 –

Implementation of e-Way Bills from 1st April’ 18, is mandatory for inter-state movement of goods throughout India. The requirement of e-way bills for movement of goods within the States /UT will start from 15th April 18 in a phased manner by grouping the States/UT into four lots. “Yet to be notified”

What is an E-Way (Electronic Way) Bill?

E-Way Bill is not a new Era, it was as same as the Waybill system existed under earlier VAT Law, which have been introduced and used by number of states.

Transporters should carry a eWay Bill (details relating to Invoice / Bill / DC & transportation) when moving goods from one place to another place, when certain conditions satisfied.

eWay Bill is to be generated in Form GST EWB-01 (or) GST EWB-02 (Consolidated) electronically on the common portal (https://ewaybillgst.gov.in/ewb.html), alternatively eWay Bill can also be generated or cancelled through SMS, Android App & Site-to-Site Integration (through API).

Upon successful generation of eWay Bill, a unique eWay Bill number (EBN) is allocated and is available to the Supplier, Recipient & Transporter.

When to generate eWay Bill?

When there is a movement of goods in a vehicle or conveyance of value more than Rs.50,000/-* (either each Invoice or in (aggregate of all Invoices)) –

  • In relation to supply,
  • For reasons other than supply (say a return)
  • Due to inward supply form an unregistered person.

* Exception – Inter-State

  • Movement of Goods by the principal to the Job-worker by principal or registered Job Worker (by principal)#
  • Transport of Handicraft goods by a dealer exempted from GST. (by dealer)

# As per Notification dated 7th March’ 18 – “A registered Job-Worker can also generate eWay Bill for movement of goods to or from a Principal located in another state”

Who should generate a eWay Bill?

Registered Person is Consignor or Consignee may generate the eWay Bill in form GST EWB-01 electronically on the common portal after furnishing information in Part B of Form GST EWB-01.

Where the e-way bill is not generated & the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.

As per Notification dated 7th March’ 18 – “Until a date yet to be notified, the transporters need not generate eWay Bill where all the consignment in the conveyance – Single Invoice or DC or Bill is less than or equal to Rs.50,000/- BUT Multiple Invoices or DC’s or Bills exceeds Rs.50,000/-”

“Transporters will need an authorization by the suppliers to generate Part A of eWay Bill

Unregistered persons also required to generate eWay Bill. However, where a supply is made to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

Provided also that where the goods are transported for a distance of less than ten kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

As per Notification dated 7th March’ 18 – “distance less than 10 Kms replaced with distance upto 50 Kms”

If the supply is made by air, ship or railways, then the information in Part A of Form GST EWB-01 has to be filled in by the consignor or the recipient.

* Further a registered person or the transporter may chose to generate and carry eWay Bill even if the value of the goods is less than Rs.50,000/-

The details of e-way bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

Where the recipient does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

In “Bill To Ship To” model of supply, there are 3 persons involved in a transaction, namely –

  • ‘A’ is the person who has ordered ‘B’ to send goods directly to ‘C’.
  • ‘B’ is the person who is sending goods directly to ‘C’ on behalf of ‘A’.
  • ‘C’ is the recipient of goods.

Here two supplies at involved and accordingly two invoices are required to be issued:

  1. Invoice – 1 (which would be issued by ‘B’ to ‘A’)
  2. Invoice – 2 (which would be issued by ‘A’ to ‘C’)

As per CGST Rules, 2017 either ‘A’ or ‘B’ can generate eWay Bill but it may be noted that only one eWay Bill is required to be generated as specified manner (fill Part A of GST Form EWB- 01).

Cancellation of eWay Bill –

eWay Bill can be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of eWay Bill.

“eWay Bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B

Validity of eWay Bill –

The e-way bill generated under Goods and Services Tax Rules of any State shall be valid in every State and Union territory.

Validity of eWay Bill is calculated from the date and time of generation & will be based on the distance travelled by the goods.

Type of Conveyance Distance Validity of EWB
Other than Over dimensional cargo Less than 100 Kms 1 Day
For every additional 100 Kms or part there of additional 1 Day
For Over dimensional cargo Less than 20 Kms 1 Day
For every additional 20 Kms or part there of additional 1 Day

Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein: Provided further that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

“Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal”

When eWay Bill is not required?

eWay Bill is not required to be generated in the following cases –

  • Where the goods are being transported by a non-motorized conveyance;
  • 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
  • Goods transported under Customs supervision or under customs seal.
  • Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
  • Transit cargo transported to or from Nepal or Bhutan.
  • Movement of goods caused by defense formation under Ministry of defense as a consignor or consignee
  • Empty Cargo containers are being transported
  • Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery Challan.
  • Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
  • Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
  • Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.

As per Notification dated 7th March’ 18 –

“Part B of eWay Bill is not required to be filled where the distance between the consignor and the transporter is less than 50 Kms and transport is within the same state”

Documents to be carried by person in charge of a conveyance –

The person in charge of a conveyance shall carry –

  • The invoice or bill of supply or delivery challan, as the case may be &
  • A copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Verification of documents & Conveyance –

The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.

Inspection & Verification of goods –

After due verification , a summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within 24 hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within 3 days of such inspection.

Where the physical verification has been done during transit at one place, no further physical verification of the said conveyance shall be carried out again in the State, unless specific information relating to evasion of tax is made available subsequently.

E-Way Bill Roll out Over India –

As per decision of the Goods and Service Tax (GST) Council, the eWay Bill system for all inter-state movement of goods was rolled out from as specified below, along with intra-state movement of goods.

Rolled out from States/Union Territory
1st April Karnataka
15th April Andhra Pradesh, Gujarat, Kerala, Telangana, Uttar Pradesh.
25th April Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim & Puducherry.

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