The Government on Wednesday, vide notification no. 27/2017-Central Tax dated 30th August, 2017, issued the much delayed rules regarding Procedure and Information to be furnished before commencement of movement of goods and generation of e-way bill. So finally the benefit of not filing any way bills under GST as enjoyed by the registered person is soon going to end. Effective date of applicability of e-way bills shall be notified by the government through another notification, which is expected to come soon, so let’s understand the procedure and law related to generation and issue of E-way bills under GST.
What would be format of E-way Bill?
E-way bill shall be filed in Form GST EWB-01. It will have 2 parts Part-A and Part-B.
PART-A will contain following information:
- GSTIN of Recipient
- Place of Delivery. (PIN Code is mandatory)
- Invoice or Challan Number
- Invoice or Challan Date
- Value of Goods
- HSN Code (HSN Code shall be indicated at minimum two digit level for taxpayers having annual turnover up to five crore rupees in the preceding financial year and at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year.)
- Reason for Transportation (Supply, Export or Import, Job Work, SKD or CKD, Recipient not known, Line Sales, Sales Return, Exhibition or fairs, For own use, Others)
- Transport Document Number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number)
PART-B will contain following information:
- Vehicle Number
Who will be required to file E-way Bills?
E-way Bill will be generated only after filing both the Part-A and Part-B of EWB-01. However these parts may be filled by different persons under GST.
Every registered person who causes movement of goods shall file Part-A of E-way Bill in form EWB-01 under GST:
(i) in relation to a OUTWARD supply; or
(ii) for reasons other than supply; or (like stock transfers within state, goods sent to job worker etc.)
(iii) due to INWARD supply from an unregistered person.
Part-B of E-way Bill in form EWB-01, may be filed either by supplier, recipient or the transporter.
Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, the said person or the recipient (whoever is registered under GST) may generate the e-way bill in FORM GST EWB-01 after furnishing information in Part B of FORM GST EWB-01.
Also, where the e-way bill is not generated and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the required information relating to the transporter in Part A of FORM GST EWB-01 and the e-way bill shall be generated by the transporter after furnishing Part B of FORM GST EWB-01 on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.
Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01.
The information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel.
When to file E-way Bills?
E-way bill is required to be filed before commencement of such movement of goods, where value of such consignment is Rs. 50,000/- or more.
However, no e-way bill is required to be generated—
(a) where the goods being transported are specified in Annexure to notification no. 27/2017-Central Tax dated 30-08-2017 (basically it is a list of some exempted goods);
(b) where the goods are being transported by a non-motorized conveyance; (example rickshaw, tonga etc.)
(c) where the goods are being transported from the port, airport, air cargo complex and land customs station to an ICD (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.
How to file E-way Bills?
Information relating to the goods shall be filed in Form EWB-01, electronically, on the common portal.
The facility of generation and cancellation of e-way bill may also be made available through SMS.
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.
The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1. However when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the email is available.
The details of the generated e-way bill 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.
Is there any minimum monetary limit of filing E-way bill?
E-way bills are not required to be filed for consignment value of less than Rs. 50,000/-. However, the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:
This limit of Rs. 50,000/- to issue a E-way bill is available invoice wise or transport/conveyance wise?
The limit is applicable to both invoice wise and conveyance wise. In other words, in case all invoices related to goods carried by the transporter are below the limit of Rs. 50,000/- but aggregate of all invoices related to goods carried in a single vehicle exceeds Rs. 50,000/- then also generation of E-way bill is compulsory.
So where the consignor or the consignee has not generated EWB-01 and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be.
Also where the multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment and a consolidated e-way bill in FORM GST EWB-02 maybe generated by prior to the movement of goods.
Is there any validity period of E-way Bills or goods can be transported any time after filing E-way Bills?
In case where the distance, the goods have to be transported is upto 100 Km , an e-way bill generated in form EWB-01 or a consolidated e-way bill generated in form EWB-02 shall be valid for the period of one day only and for every 100 km or part thereof thereafter the validity of E-way bill will be automatically extended by one additional day.
However, the Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein:
Also 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.
For the purposes of this rule, the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.
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.
Is it possible to cancel the E-way bill once it is generated?
Where an e-way bill has been generated, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled within 24 hours of generation of the e-way bill.
However, an e-way bill cannot be cancelled if it has been verified in transit by the recipient of the goods.
What will happen in case of change of vehicle during transit?
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 in FORM GST EWB-01:
However 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 transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.
What all documents are required to be carried by the person-in-charge of a conveyance?
- Invoice/Bill of supply/Delivery Challan/Bill of Entry (as the case may be)
In physical form
A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading. Also, in such case the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
2. E-Way bill
In physical form
E-way bill number in case it is mapped to a Radio Frequency Identification Device embedded on to the conveyance. Also, the Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.
What is the process of inspection, verification and detention of goods or vehicle under GST?
On receipt of specific information on evasion of tax, physical verification of a specific conveyance can be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorized by him in this behalf.
Such officer may 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. In case where the e-way bill has been mapped with RFID, verification of movement of vehicles shall be done through RFID readers.
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 twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.
Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently.
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.