Our Blogs

E-waybill is a receipt or a document giving details & instructions relating to the shipment of a consignment of goods issued by a carrier and the details include name of consignor, consignee, and the point of origin of the consignment, its destination, and route. E-Way Bill is a compliance mechanism where in by way of a digital interface the person causing the movement of goods and relevant information to be furnished prior to the commencement of movement of goods and generation of E-way bill on the GST portal.

Rule 138 under CGST Rules states Every registered person who causes movement of goods of consignment of value exceeding Rs. 50,000 –

• In relation to supply
• For reasons other than supply or
• Due to inward supply from an unregistered person

shall, before commencement of such movement, furnish information electronically relating to said goods in Part A of FORM GST EWB-01, electronically, on the common portal.
NOTE:

• 1st February ,2018 has been notified date for implementation date of E-ways rules contained in Rule 138,138A,138B,138C and 138D of the CGST rules .( Refer N/N 74/2017- Central Tax dated 29.12.2017 issued by CBEC.)
• From 1st Feburary,2018 onwards all interstate movement of goods having value of exceeding Rs. 50,000 will be covered under E-way Bill provisions.
• All intra state (with in state ) movement of goods , the E- way bill system will be implemented across all over India w.e.f. 01.06.2018
• Trial run of e-way bill started from 16th Januaray,2018.

Objectives
There are following objectives of E-way bill system:

• One e- way bill for movement of the goods throughout the country
• Hassle free movement of goods for transporters throughout the country
• Controlling and checking tax evasion
• E-way bill is an effective tool to track the movement of goods
• No need for transit pass in any state
• Easier verification of the e-way bill by officers with the complete details

Benefits
There are following benefits of E-way bill system:

• A trader no need to visit tax offices anymore.
• Reduces waiting time at check post drastically.
• The physical interface will pave way for digital interface which will facilitate faster movement of goods.
• E-way bill provisions under GST will bring in a uniform e-way bill rule which will be applicable throughout the country.
• Scope of corruption eliminated in office or at check posts.
• Environmental friendly – number of tons paper saved per day.
• Self pricing policy by traders –A trader while uploading gives the identification of the buying trader who also has to account transaction.
• An accurate database created useful for tax analysis.

Features of e-way Bill Mechanism

• Common portal for e-way bill is http://ewaybill.nic.in
• User friendly
• Easy and quick generation of e-way bill
• Checks and balances
• Creating own matters- Customers, Suppliers, Products, Transporters
• Monitoring or tracking the E-way bills generated
• Multiples modes for e-way bill generation, website, SMS, App, API, GSP
• Managing sub users and creation of roles
• Generating GSTR 1 from the E-way bills
• Alert through online and SMS
• QR code on the E-way bill for ease of seeing details
• E-way bill is complete only when Part B is entered. Part B is a must for the e-way Bill for movement purpose. Otherwise print out of EWB says it is invalid for movement of goods.
• The validity of the e-way bill start when first entry is made in Part B, that is, vehicle entry is made first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry It may be noted that validity is not recalculated for subsequent entries in Part B.

Responsible Person for generation of E-Way Bill
The responsibility of generation of E-way bill by the

• Supplier,
• Receiver and
• Transporter.
• If purchase or sale from a unregistered person/dealer the registered person is responsible for generation of E-way bill.

Cases where E-way bill is generated less than amount of Rs 50000

• Where the goods are sent by the Principal located in a one state to a job worker located in any other state, the e-way bill shall be generated by the Principal irrespective of the value of consignment.
• Where handicraft goods are transported from one state to another state by a person who has been exempted from the requirement of obtaining registration, the e-way bill shall be generated by the said person irrespective of the value of consignment.

Type of supply covered under E way Bill / Reason for Transportation

• Rejection
• Sale return
• Repair and Maintenance
• Job work or material send for job work with delivery challan
• Export or import
• SKD and CKD
• Recipient not known
• Line sales
• Exhibition or fairs
• For own use
• others

Exemptions from E-way bill
Under Rule 138(14) of CGST rules 2017, No e-way bill is required to be generated as follows:

• Transport of goods as specified in Annexure to Rule 138(14) of the CGST Rules, 2017. Annexure contains 154 types of goods, mainly animals, meats (other than frozen and put up in unit containers), milk, cereals (unbranded), loose vegetables, old and used household goods, jute, yarn printed books, newspapers, currency etc. (refer Rules 138 of CGST rules)
• Goods being transported by a non-motorised conveyance;
• Goods 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;
• In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State.(no area notified yet)

Validity of E-way Bill

The validity of e-way bill depends on the distance to be travelled by the goods. For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant date. For every 100 Km thereafter, the validity will be additional one day from the relevant date.

• #00 to 100 Km. : 01 Days
• #100 to 300 Km.: 03 Days
• #300 to 500 Km. : 05 Days
• #500 to 1000 Km. : 10 Days
• #More than 10000 Km. : 15 Days

The “relevant date” shall mean the date on which the e-way bill has been generated and 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. In general, the validity of the e-way bill cannot be extended. However, Commissioner may extend the validity period only by way of issue of notification for certain categories of goods which shall be specified later.

Further, if 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.

E-way bill is invalid for movement of goods, if it is not updated with Part B, if the travel distance is more than 10 Kms.

Cancellation of E- way bill
Where an e-way bill has been generated under this rule, 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 electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, 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 in accordance with the provisions of rule 138B of the CGST Rules, 2017.
• The facility of generation and cancellation of e-way bill will also be made available through SMS.

Multiple consignments

Where multiple consignments of varying values (per consignment) are carried in a single vehicle, e-way bill needs to be mandatorily generated only for those consignments whose value exceeds ` 50,000/-.This does not however preclude the consignor/consignee/transporter to generate e-way bills even for individual consignments whose value is less than ` 50,000/-per consignment.

• The transporter may indicate the serial number of e way bills generated in respect of each such consignment electronically on the common portal and
• A consolidated e way bill in FORM GST EWB -02 may be generated by him on the said common portal prior to the movement of goods.
• Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions and the value of goods carried in the conveyance is more than `50000/- , 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 and may also generate a consolidated e way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.
• There is always a possibility that multiple vehicles are used for carrying the same consignment to its destination or unforeseen exigencies
• May require the consignments to be carried in a different conveyance than the original one.
• For such situations, the rules provide that 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 the conveyance in the e-way bill on the common portal in FORM GST EWB-01

Documents and Devices to be carried by a Peron-in-charge of a conveyance

The person in charge of a conveyance has to carry

• The invoice or bill of supply or delivery challan, as the case may be; and
• 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.

It is also be noted that 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.

However, where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill:

• Tax invoice or bill of supply or bill of entry; or
• A delivery challan, where the goods are transported for reasons other than by way of supply.

Verification of Documents and Conveyance

• The Commissioner or an officer empowered by him in this behalf may authorise 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.
• The commissioner shall get Radio frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device.
• The physical verification of conveyances may also be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf.
• Physical verification of a specific conveyance can also be carried out by any officer, on receipt of specific information on evasion of tax, after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.

Inspection and Verification Of Goods

• 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.
• Once 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 uploadthe said information in FORM GST EWB-04 on the common portal.

How to Register on E-way portal (Click on the below link)
http://www.jsba.in/jsblogs/How-to-Register-in-E-way-bill-Portal-
How to Generate on E- way Bill on E- way portal (Click on the below link)
http://www.jsba.in/jsblogs/How-to-Generate-on-E-way-Bill-on-E-way-Portal

DISCLAIMER
This article is written with an intention for imparting knowledge on the topic “E-Way Bill System under GST” and this is not meant for publication. All are requested to have their due diligence before referring the same for an academic or business purpose. In case of any query, please contact me on below mentioned contact details.

Vikas Jain
Ph: +91-8375058630
Email id: vikas@coeictindia.com, vikasjain3487@gmail.com