E-Way bill Rules under GST and its Generation

E-Way Bill system for Intra-State (Within a state) movement of goods has been made compulsory in almost all States. [On 3rd June 2018 West Bengal has adopted intra-state way bill]

E-way bill is compulsory for all Inter-state (one state to another) movement.

What is an E-Way bill?

It is a document to be kept by the transporter while transporting goods, both within and outside the state, if the value of goods with him exceeds Rs.50,000/-. It can be generated from GST Common Portal.

When should an E-Way bill be generated? 

I. A Registered person should generate waybill in following situations:

1. Supply of Goods
2. Sales Return, Export or Import, Job Work, Exhibition or fairs and others
3. Receipt of goods from an unregistered person

II. Un-registered Recipient of Goods should generate way bill if the supplier is not registered. Example: Mr. Mishra of Banaras bought a computer from a local store of New Delhi (un-registered dealer). In this case, Mr. Mishra should generate e-way bill.

This bill needs to be generated before the commencement of transportation.

Who can generate E-way bill? 

1. Any registered person involved in the movement like supplier or recipient
2. Transporter (registered or un-registered)
3. Any Un-Registered Recipient of Goods

Generation of E-way bill is necessary if the value of goods transported exceeds Rs.50,000/-.Transporter should generate waybill if the consignor or consignee doesn’t provide and value of goods in the vehicle exceeds fifty thousand rupees.

A person can generate e-way bill even if the value of goods doesn’t exceed Rs.50,000/- i.e voluntarily.

Generation of E-Way Bill by a Registered Person

Step 1: Log into GST common portal and give information in Part A of FORM GST EWB-01. This information will be reflected in the common portal of the supplier for filling FORM GSTR-1.

Step 2: If goods are transported by road, fill details in part B of FORM GST EWB-01 and give transporter details provided in Part A of FORM GST EWB-01. Finally, the transporter will generate E-Way bill.

If goods are transported by any mode other than road like railway, fill details in part B of FORM GST EWB-01 and generate E-Way bill.   

Step 3: After the completion of step 2, a unique e-way bill number (EBN) will get generated and it will be informed to the supplier, the recipient and the transporter on the common portal. Take print out of e-way bill using the given unique EBN.

Facilities available to Transporter under E-Way Bill

1. Can generate e-waybill if not provided by the supplier or recipient and value of goods in the conveyance exceed Rs.50,000/-
2. In case of change in vehicle in the course of transit, transporter can update vehicle number in the e-way bill by filling FORM GST EWB-01
3. Can consolidate multiple waybills into one by filling FORM GST EWB-02
4. Can report vehicle’s detention for more than 30 minutes in FORM GST EWB-04

The validity of E-Way bill

*Through a notification, the validity period may be extended by the Commissioner.

1. E-waybill can be canceled within 24 hours of its generation. However, it can’t be canceled if the vehicle is verified in transit by the commissioner or any authorised officer.

2. Recipient of goods can reject consignment up to 72 hours from the time of intimation of e-waybill. In case of non-rejection of consignment within 72 hours, it will be deemed to be accepted.

 Documents and devices to be carried by Transporter

1. The invoice or bill of supply or delivery challan; 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 a prescribed manner.

OR

The Commissioner may, by notification require 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.

Verification of Vehicles and Documents in transit 

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 shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf: Provided 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.

Inspection and verification of goods 

Proper officer shall record online, a summary of inspection of goods in transit in Part A of FORM GST EWB-03 within 24 hours of inspection and a final report in Part B of FORM GST EWB-03 within 3 days of such inspection.

Physical verification of goods of a vehicle will be done only once throughout its journey unless a specific information relating to evasion of tax is made available subsequently.

Situations where E-waybill is NOT required

1. Where notified goods are being transported.
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
4. In respect of the 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.

General Questions:

Ques 1: Whether E-way bill is required if the goods are being purchased and moved by the consumer to his destination himself?

Answer: Yes.

As per the e-way bill rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than Rs. 50,000/-. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. The consumer can also enroll as a citizen and generate the e-way bill himself.

Note:

E-way rules are changing very frequently.