The Goods and Service Tax (GST) is entering the final arena and no wonder throwing up much surprises. The intent was to ease and simplify the existing indirect tax reforms.

With President approving the CGST, UTGST, IGST and Cess Act and Telangana State hogging the limelight by approving the SGST Law on 16th April i.e. Sunday. This shows the seriousness and coordination with which Central and State Governments are moving towards landmark reform.

Government is mulling to have single rate structure for each commodity to avoid confusion and this would be a much awaited relief for the trader community and Industry.

1.1 Introduction

The Government was toying with the way bill requirement in draft laws and much thought has been given in drafting electronic way bill rules. No discretionary powers are given to the officers with permission required from Commissioner to inspect vehicle. Summary report of Inspection is to be uploaded by proper officer in Form GST INS – 03 within 24 hours of inspection and final inspection report is to be provided within 3 days of the inspection. Once inspection is carried out within a State, no further inspection is to be carried out in the State, unless a specific information of tax evasion is available.

The requirement of e-way bill, exceeding a value, is required for Inter-State as well as Intra-State movement of goods.

The entire management of electronic way bills is in electronic form without any manual intervention which would reduce or rather eliminate discretion and is a welcome move. The only challenge which is foreseen if the small traders, transporters and SME are ready to move to such a scale of digitization. Scaling of IT resources is required at a massive scale which would throw open doors to innovators and Application Service Providers (ASPs).

1.2 When a way bill is required to be generated:

Every registered person who shall move the consignment of value exceeding Rs 50,000 for supply or reasons other than supply shall provide information electronically in Part A of FORM GST INS – 01. The same information is to be furnished if the inward supply is made by unregistered person. In case of inward supplies from unregistered person, the registered person shall furnish the information.

Further, a registered person or transporter may on his own generate and carry the e-way bill even if the consignment value is less than Rs 50,000.

In case there is doubt on valuation of the consignment, the registered person or transporter may opt for this option to avoid detention of vehicle.

1.3 Registered person or Recipient to generate details of e-way bill:

(a) When a registered person as a consignor or recipient of goods as consignee (vehicle may be owned or hired) is transporting goods, the registered person or recipient may generate e-way bill in Part B of FORM GST INS – 01; or

(b) If way bill is not generated under clause (a) above and goods is handed over to transporter, the registered person shall furnish information relating to transporter in Part A of FORM GST INS-01.

In case goods are consigned by unregistered person (in his owned or hired conveyance or through transporter), the unregistered person or his transporter may generate e-way bill in FORM GST INS – 01.

1.4 Unique e- Way Bill Number (EBN)

A unique e-way bill number (EBN) shall be generated on common portal which shall be made available to supplier, recipient and transporter.

1.5 Transfer of goods from one conveyance to another:

Each time a transporter, during transit, transfers goods from one conveyance to another conveyance, a new e-way bill on common portal in FORM GST INS – 01. Mode of transport shall be specified in each case.

1.6 Multiple consignments in one conveyance:

If multiple consignments are intended to be transported in same conveyance, the transporter shall indicate serial number of e-way bills generated for each such consignments and a consolidated e-way bill in FORM GST INS – 02. This is to be generated prior to the movement of the consignment. This allows movement of multiple consignments destined for several States in single conveyance. This is expected to rationalize transport cost.

In case the value of any of the consignments mentioned above exceeds Rs 50,000, the transporter shall generate FORM GST INS 01 on the basis of invoice or bill of supply or delivery challan.

1.7 Information furnished in Part A of FORM GST INS -01 shall be available on Common Portal

The information furnished in Part A of FORM GST INS – 01 shall be available in Common Portal and Registered supplier may use the said information for furnishing details in FORM GSTR – 1. If the said information is furnished by unregistered supplier, the information shall be available , if mobile number and email id is available.

1.8 Cancellation of e-way bill:

If the goods are either not transported or not transported as per details furnished in e-way bill, the same may be cancelled through common portal either directly or through facilitation center notified by commissioner. The cancellation of the e-way bill is to be made within 24 hours of generation.

Same may not be cancelled if it has been verified in transit.

1.9 Validity of e-way bill:

An e-way bill or consolidated way bill shall have following validity from date of generation of e-way bill and distance the goods are to be transported:

A. Less than 100 kms One day
B. Exceeding 100 kms but less than 300 Kms Three days
C. Exceeding 300 kms but less than 500 Kms Five days
D. Exceeding 500 kms but less than 1000 Kms Ten days
E. 1000 km or more Fifteen days

Commissioner may extend validity period of e-way bill for certain categories of goods.

1.10 Communication of acceptance or rejection of details of e-way bill by recipient:

The registered recipient shall communicate his acceptance or rejection of consignment covered in e-way bill. If the recipient does not communicate his option within 72 hours, it shall be deemed to be accepted.

1.11 Person in-charge of conveyance to carry documents and e-way bill:

The person in-charge of conveyance shall carry Invoice or bill of supply or delivery challan and a copy of e-way bill or e-way bill either physically or mapped to Radio Frequency Identification Number (RFID) embedded on to the conveyance.

1.12 Who shall obtain RFID:

The commissioner may require a class of transporters to obtain unique RFID and get the same embedded on to the conveyance and map e-way bill to the RFID prior to movement of goods.

1.13 Verification of documents and conveyance:

Any proper officer empowered by the commissioner to intercept any conveyance to verify e-way bill or e-way bill in physical form for all inter-state and intra-state movement of goods. RFID readers shall be installed at places where verification is required.

1.14 Inspection and Verification of goods

Summary report of Inspection is to be uploaded by proper officer in Form GST INS – 03 within 24 hours of inspection and final inspection report is to be provided within 3 days of the inspection. Once inspection is carried out within a State, no further inspection is to be carried out in the State, unless a specific information of tax evasion is available.

1.15 Uploading information of detention of vehicle:

In case any conveyance if intercepted and detained for a period exceeding 30 minutes, the transporter may upload the information in FORM GST INS – 04 on common portal.

Government has tried to simplify the rules related to e-way bill but furnishing information in e-way bill for Intra- State movement may turn to be cumbersome for small traders who deal in wholesale and retail trade.

Summary of various FORMS prescribed in above rule –

FORM GST INS – 01 Information relating to movement of goods in Part A and part B
FORM GST INS – 02 Consolidated e-way bill information report in part B
FORM GST INS – 03 Summary report of Inspection in part A and final
FORM GST INS – 04 Information by transporter on common portal of any detention of conveyance exceeding 30 minutes

Rohit Kumar SinghAbout the Author: Author Rohit Kumar Singh is a Fellow Member of ICSI, an Associate Member of ICAI and ICMAI, a Law Graduate (Gold Medalist). He is currently heading GSP (GST Suvidha Provider) Business at Karvy Data Management Services Private Limited. He was associated with PriceWaterHouseCoopers Private Limited (PwC), Hyderabad as Manager handling IDT and GST initiatives. Prior to this he was with Gammon India Limited heading Indirect tax function of T&D Division. He may be reached at or +91-9503031788.

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Category : Goods and Services Tax (8432)
Type : Articles (18547)
Tags : goods and services tax (6870) GST (6471)

3 responses to “E-Way Bill rules under Goods and Services Tax law”

  1. B./Chandra Sekhar says:

    Well done Rohit. Comprehensively covered.


    Dear Mr. Rohit
    Thanks for the update. Nice article.

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