CMA Ramlakhan Ahirwar

Under GST, transporters will need to carry an electronic waybill or E Way Bill when moving goods from one place to another. Since it is a new rule introduced under GST, it is necessary for all consignors/consignees/transporters to be aware of the required compliance.

Waybill compliance was a nightmare for suppliers in the pre-GST era. Supply of goods could not take place without obtaining these ‘waybills’ from VAT authorities. A waybill is a physical document that allows movement of goods. The compliance around waybills has caused restricted movement of goods across states. Under GST, the waybill is replaced by an e-way bill which aims at mitigating the problems caused by waybill compliance.

Latest Update:

24th GST Council Meet held on 16th December 2017:

1. E way bill rules will be rolled out on a trial basis from 16th Jan 2018

2. The e-way bill rules will be implemented in India from 1st February 2018

3. The states can opt to follow the e-way bill system anytime before 1st June 2018

4. From 1st June 2018 e-way bill rules will uniformly apply to all states.

What is an e-way bill?

E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common 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 canceled through SMS.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

When should an e-way bill be generated?

E-way bill will be generated when there is movement of goods –

  • In relation to a ‘supply’
  • For reasons other than a ‘supply’ ( say a return)
  • Due to inward ‘supply’ from an unregistered person

What is a ‘supply’ in case of an e-way bill?

For this purpose, a supply may be either of the following:

  • A supply made for a consideration (payment) in the course of business
  • A supply made for a consideration (payment) which may not be in the course of business
  • A supply without consideration (without payment)

In simpler terms, the term ‘supply’ usually means a:

1. Sale – sale of goods and payment made

2. Transfer – branch transfers for instance

3. Barter/Exchange – where the payment is by goods instead of in money

Therefore, e-way bills must be generated on the common portal for all these types of movements.

Who can generate an e-way bill?

  • E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered personsor their transporters may also choose to generate an e-way bill. This means that an e-way bill can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

List of People Who Can Generate an E-Way Bill

Who When Part Form
Every Registered person under GST Before movement of goods Fill Part A Form GST EWB-01
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 EWB-01
Registered person is consignor or consignee  and goods are handed over to transporter of goods Before movement of goods Fill Part B  The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods Before movement of goods  Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered Compliance to be done by Recipient as if he is the Supplier.  1. If the goods are transported for a distance of ten kilometers or less, within the same State/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.

2. If 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

Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not created an e-way bill, then the transporter can do so by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.

Can e-way bills be used during return filing?

Yes. The information provided in Part A of the Form GST EWB-01 can be used for preparing GSTR-1.

What is the validity of an e-way bill?

An e-way bill is valid for periods as listed below, which is based on the distance traveled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Distance Valid from Valid for
Up to 100km Date & time at which e-way bill is generated 1 day
For every 100 km after that Date & time at which e-way bill is generated An extra day

Acceptance of GST E-way Bill

The generated e-way bill gets acceptance in the following cases:

  • The consignment of available e-way bill is accepted by the recipient who is registered on common portal
  • If in case the recipient doesn’t respond to the available E-way bill details within 72 hours, then it is considered that the e-way bill is accepted by the recipient.
  • The E-way bill does not need consent in the following case and considered to be accepted:
  • If the goods transportation comes under Annexure of Rule 138(14) i.e. exempted for e-way bill.
  • When the mode of transfer is non-motorized conveyance
  • If the goods are transported to inland container port or a freight station for customs clearance from the airport, air cargo complex, and the port
  • if the movement of Goods is to the concerned areas of the states covered under clause(d) of sub-rule (14) of rule 138 of GST

Cancellation of GST E-way Bill

In the case, when E-way bill not transported to the mentioned place or not transported according to the details in the generated E-way bill within 24-hours of issuance, the bill is cancelled automatically by the common portal.

The cancellation can be done automatically through a common portal or by the order of commissioner through a Facilitation Center. By logging in the common portal using the ID and password of that particular Facilitation Center, the cancellation can be done. But if the bill is verified in transit as per the rule under 138B, the cancellation is not possible.

The proposed e-way bill for moving goods within the country would rely heavily on technology, employing RFID chips and QR codes, to ensure that monitoring of goods movement does not bring back inspector raj and slow down goods traffic on highways. After the launch of goods and service tax (GST) on July 1, the movement of commercial goods had got speeded up as state abolished entry check posts.

For more details refer:

1) Notification no. 27/2017-Central Tax issued as on 30th August, 2017,

2) Notification no. 74/2017-Central Tax issued as on 29th December, 2017 on CBEC portal.

(The author can be reached at ahirwar.ramlakhan@gmail.com)

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