Under GST law, every registered person who causes movement of goods of consignment value exceeding Rs. 50000, before commencement of movement, shall furnish information about the goods in FORM GST INS-01 .
The person-in-charge of a conveyance shall carry a copy of e-way bill either physically or mapped to a RFID embedded on to the conveyance.
Central Tax officers authorized so can intercept any conveyance to verify the e-way bill for Inter-State or Intra-State Movement of goods. For this purpose, the Govt. shall get RFID (Radio Frequency Identification Device) installed at places where verification of movement of vehicles would be done.
A Summary Report of every such inspection of goods in transit shall be recorded in Part-A of FORM GST INS-03 within 24 hours, and final report in PART-B of said Form has to be recorded within 3 days.
There are five rules which deals with the aspects of movement of goods:
- Information to be furnished prior to commencement of movement of goods and generation of E-way bill.
- Documents and devices to be carried by a person-in-charge of a conveyance.
- Verification of documents and conveyances.
- Inspection and Verification of goods.
- Facility for uploading information regarding detention of vehicle.
What is E-way bill
E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN portal. A ‘movement’ of goods of more than Rs 50,000 in value cannot be made by a registered person without an E-way bill.
E-way bill will also be allowed to be generated or cancelled through SMS.
When an E-way bill is generated a unique E-way bill number (EBN) is allocated and is available to [(Rule 1(2)]
- Recipient, and
When to generate an E-way bill
E-way bill will be generated before commencement of movement of goods of consignment value exceeding Rs. 50,000 –
- In relation to a Supply*
- For reasons Other Than Supply e.g. return
- Due to Inward ‘Supply’ From an Unregistered Person
*Supply in case of E-way bill
A supply may be –
- Supplied for a consideration (means payment) in the course of business
- Supplies made for a consideration (payment) which may not be in the course of business
- Supplies without consideration (without payment)
Basically, supply means –
Sale – sale of goods and payment made
Transfer – say branch transfers
Barter/Exchange – Payment by goods instead of money.
Therefore, E-way bills must be generated on the common portal for all types of movements in relation supply.
Generation E-way bill
An E-way bill can be generated in the manner as mentioned in table below as per E-way rules:
|Rule 1(1)||Every Registered person under GST||Before movement of goods||Fill Part A||Form GST INS-01|
|Rule1(1)(a)||Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods||Before movement of goods||Fill Part B||Form GST INS-01|
|Rule1(1)(b)||Registered person is consignor or consignee and goods are handed over to transporter of goods||Before movement of goods||Fill Part A & Part B||Form GST INS-01|
|Proviso (2) to Rule1(1)(b)||Transporter of goods||Before movement of goods||Fill form GST INS-01 if consignor does not.|
|Explanation to Rule1(1)||Unregistered person under GST and recipient is registered.||Compliance to be done by Recipient as if he is the Supplier.||Fill Part A & Part B||Form GST INS-1|
|Rule 1(3)||Transporter of goods||Transporter transferring goods from one conveyance to another in the course of transit||Fill New form GST INS-01|
|Rule 1(4)||Transporter of goods||Multiple Consignments (Consolidated E-way Bill) before movement of goods||Fill form GST INS-02|
A registered person or transporter, AT THEIR OPTION, generate and carry E-way Bill for the consignment value less than Rs. 50,000.
A registered person may submit a tax invoice in Form GST INV-1 on the common portal. If a registered person has uploaded the invoice, information in Part A of Form GST INS-1 is auto populated from GST INV-1.
Information in Part A of Form GST INS-01 is used for preparing GSTR-1.
Cancellation of E-way Bill
The E-way Bill may be cancelled within 24 hours of generation when the goods [Rule 1(6)]:
- Not being transported or
- Not being transported as per the details furnished in E-way Bill generated
It cannot be cancelled if it has been verified by concerned officials in transit.
Validity of an E-way bill
Validity of an E-way bill is calculated from the date and time of generation of E-way bill as per table below [Rule1(7)]:
|Distance||Valid from||Valid for|
|Less than 100km||Date & time at which E-way bill is generated||1 day|
|100km to 300km||Date & time at which E-way bill is generated||3 days|
|300km to 500km||Date & time at which E-way bill is generated||5 days|
|500km to 1000km||Date & time at which E-way bill is generated||10 days|
|1000km or more||Date & time at which E-way bill is generated||15 days|
The Commissioner may extend the validity period of E-way bill for certain categories of goods.
Acceptance or Rejection by Recipient
The details of E-way Bill generated shall be available to the registered recipient who shall accept or reject the consignment covered in the e-way bill generated. [Rule 1(8)]
If not accepted/rejected within 72 hours, Deemed to be accepted. [Rule 1(9)].