E Way Bill [An understanding of e-way bill provisions]

[CASanjay Kumawat]

A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route. Accordingly, it’s an official shipping document that travels with a shipment, identifies its consignor, consignee, origin and destination, describes the goods, and shows their weight and freight.

The Central Government vide Notification No. 27 /2017 – Central Tax dated 30.08.2017 has amended the CGST Rules, 2017, to incorporate the provisions of e-way bill. Detailed analysis of the provisions of e-way bill in question answer form are as follows:

1. When the provisions of e way bill applicable in India?

Ans.   E way bill provisions shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Accordingly, these provisions shall be applicable from a future date as may be notified by the Central Government.

2. Who is required to generate e way bill? Whether there is minimum value for which e way bill is not required to be prepared?

Ans.   As per Rule 138(1) of the CGST Rules, 2017, every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees-

1. in relation to a supply; or
2. for reasons other than supply; or
3. due to inward supply from an unregistered person,

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

Accordingly, e way bill is not required to prepared where value of goods is ₹ 50,000 or less.

3. Whether detail of conveyance is required to be given in the e way bill? If yes, then who is liable to give the details in the prescribed form?

Ans.   As per Rule 138(2) of the CGST Rules, 2017, where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.

Further, as per Rule 138(3) of the CGST Rules, 2017, where the e-way bill is not generated by the consigner or consignee and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.

It may be noted that as per explanation 2 of the Rule 138(3) of the CGST Rules, 2017, 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.

 

4. Whether a consigner or consignee or transporter can generate e way bill voluntary even if value of the consignment is less than ₹ 50,000?

Ans.   As per first proviso to Rule 138(3) of the CGST Rules, 2017, 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.

5. Whether an unregistered person is required to generate the e way bill?

Ans.   As per second proviso to Rule 138(3) of the CGST Rules, 2017, 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 on the common portal.

It may be noted that as per explanation 1 of the Rule 138(3) of the CGST Rules, 2017, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

6. Whether detail of conveyance is required to be given in the case where goods are to be transported less than 10 KMs?

Ans.   As per third proviso to Rule 138(3) of the CGST Rules, 2017, where the goods are transported for a distance of less than ten kilometres 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.

It may be noted that details in Part A of Form GST EWB-01 is required to be given if value of goods is exceeding ₹ 50,000.

7. Whether unique e-way bill be made available to parties?

Ans.   As per Rule 138(4) of the CGST Rules, 2017, 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.

8. Whether a separate e way bill is required to be generated in case of change of vehicle for transportation of goods to the same consignee? If yes, for the place within 10 KMs distance?

Ans.   As per Rule 138(5) of the CGST Rules, 2017, any transporter transferring goods from one conveyance to another in the course of transit shall update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01 before such transfer and further movement of goods.

It may be noted that where the goods are transported for a distance of less than ten kilometres 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.

9. Whether a consolidated e way bill can be generated in respect to multiple consignments are intended to be transported in one conveyance?

Ans.   As per Rule 138(6) of the CGST Rules, 2017, where 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 electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

10. Whether transporter is liable to generate e way bill in case where consigner or consignee has not generated e way bill?

Ans.   As per Rule 138(7) of the CGST Rules, 2017, where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) 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, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.

11. Whether detail of e way bill generated in respect to movement of goods made available to the supplier for filing of GSTR-1?

Ans.   As per Rule 138(8) of the CGST Rules, 2017, 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.

It may be noted that 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.

12. When generated e way bill can be cancelled?

Ans.   As per Rule 138(9) of the CGST Rules, 2017, 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.

It may be noted that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

13. What is the validity/time limit of e way bill generated? Whether the same can be extended?

Ans.   As per Rule 138(10) of the CGST Rules, 2017, an e-way bill or a consolidated e-way bill generated shall be valid for the specified period from the relevant date, for the specified distance the goods have to be transported. Distance as well as validity is as follows:

S.No.	Distance	Validity period
1	Upto 100 km	One day
2	For every 100 km or part thereof thereafter	One additional day

It may be noted that the Commissioner may, by notification, extend the validity period of e way bill for certain categories of goods as may be specified therein.

It may be further noted that 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.

14. What is the meaning of the relevant date for the determination of validity of the e way bill?

Ans.   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.

15. Whether acceptance or rejection by the recipient is necessary in order to move the goods from supplier’s place to the recipient’s? If yes, is there any provision for deemed acceptance?

Ans.   As per Rule 138(11) and 138 (12) of the CGST Rules, 2017, the details of e-way bill generated 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.

          In case where the said 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.

16. Whether an e way bill generated in one state is valid for other state also? Or a separate e way bill needs to be generated for different states?

Ans.   As per Rule 138(13) of the CGST Rules, 2017, the e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State shall be valid in every State and Union territory.

          Accordingly, no separate invoice is required to be generated for different states.

17. Is it mandatory to generate e way bill for all the goods to be transported?

Ans.   As per Rule 138(14) of the CGST Rules, 2017, notwithstanding anything contained in this rule, no e-way bill is required to be generated-

1. where the goods being transported are specified in Annexure (, i.e., most of the goods are exempt from levy of GST);

2. where the goods are being transported by a non-motorised conveyance;

3. where the goods are 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; and

4. 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.

18. Whether the facility of generation or cancellation of e way bill is available through SMS?

Ans.   As per explanation to Rule 138(14) of the CGST Rules, 2017, the facility of generation and cancellation of e-way bill may also be made available through SMS.

19. What are the types of documents and devices required to be carried by a person-in-charge of a conveyance?

Ans.   As per Rule 138A of the CGST Rules, 2017, following shall carry by the person-in-charge of a conveyance:

1. The person in charge of a conveyance shall carry-
   1. the invoice or bill of supply or delivery challan, as the case may be; and
   2. 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.

2. 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.

3. Where the registered person uploads the invoice, 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.

4. 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.

5. Notwithstanding anything contained clause (b) of sub-rule (1), 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-

1. tax invoice or bill of supply or bill of entry; or
2. a delivery challan, where the goods are transported for reasons other than by way of supply.

20.  What are the provisions for verification of documents and conveyances?

Ans.   As per Rule 138B of the CGST Rules, 2017, provisions relating to verification are as follows:

1. 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.

2. 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.

3. The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf.

4. It may be noted that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.

21. How report of inspection and verification of goods will be recorded by the proper officer ?

Ans.   As per Rule 138C(1) of the CGST Rules, 2017, 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.

22. Whether inspected/verified goods can be re-verified?

Ans.   As per Rule 138C(2) of the CGST Rules, 2017, 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.

23. Whether there is any facility of uploading of information regarding detention of vehicle?

Ans.   As per Rule 138D of the CGST Rules, 2017, 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.

Note: Author can be reached at [email protected].