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. In this article, we cover the following topics:
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.
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 persons or their transporters may also choose to generate an e-way bill. This means than 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
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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-
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| 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 |
FAQ on E-way Bill
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What is an e-Way Bill?
E-Way Bill is a document generated from the GST Common Portal by the registered persons or transporters, who causes movement of goods of consignment value exceeding fifty thousand rupees, before commencement of such movement.
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Why is the e-Way Bill required?
As per the section 138 of the GST Rules, the movement of goods exceeding the prescribed value need to carry the e-Way Bill document or number generated from the common portal..
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Who all can generate the e-Way Bill?
The consignor or consignee, as a registered person, of the goods or transporter of the goods can generate the e-Way Bill. The unregistered transporter can enroll on the common portal and generate the e-Way Bill for movement of goods for his clients. The citizen can also enroll and generate the e-Way Bill for movement of goods for his/her own use..
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Who all can update the vehicle number for the e-Way Bill?
The e-Way Bill is not valid without the vehicle number updated on the common portal, if it is moved on the road. Hence, the vehicle number is required. The Vehicle number can be updated by the generator of the e-Way Bill or the transporter assigned for that e-Way Bill by the generator..
What is a pre-requisite to generate the e-Way Bill?
To generate the e-Way Bill, one need to be ready with the document of the goods that is being moved and transporter Id, who is moving the goods, with transporter document number or the vehicle number, in which the goods are getting moved..
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If there is a mistake or wrong entry in the e-Way Bill, what has to be done?
If there is mistake, incorrect or wrong entry in the e-Way Bill, then it cannot be edited or corrected. One has to cancel that e-Way Bill and generate the new one.
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Whether the e-Way Bill can be corrected?
If there is mistake, incorrect or wrong entry in the e-Way Bill, then it cannot be edited or corrected. One has to cancel that e-Way Bill and generate the new one.
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If the goods having e-Way Bill changes its vehicle, then what has to be done?
The goods having the e-Way Bill, on the movement, always should have the vehicle number that is carrying the goods as the latest vehicle number. There may be requirement to change the vehicle number after generating the e-Way Bill or after starting moving the goods. It may be required as vehicle carrying the goods may breaks down or the goods move through transshipment or transit places before reaching the destination.
If the goods having e-Way Bill change, then the transporter or generator of the e-Way Bill can update the vehicle number.
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Why the transporter needs to enroll on the e-Way Bill system?
There are some transporters, who have not registered with the GST system. They may cause the movement of goods for their clients. They may have to generate the e-Way Bill on the clients behalf or update the vehicle number for e-Way Bill. Hence, they need to enroll on the e-Way Bill portal and generate the 15 digits Unique Transporter Id.
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Can I carry the goods with the e-Way Bill without vehicle details in it?
No, One needs to carry the goods and e-Way Bill with the vehicle number, which is a carrying the goods, as a latest vehicle number always. However, of the goods are moved for less than 10 KMs, then the vehicle number is a not must..
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Whether e-Way Bill is required for all the goods that are being transported?
The e-Way Bill is required to transport the goods which have been notified and have a prescribed value. The notified goods or HSN and prescribed value may change from state to state for inter-state and intra-state movement. Hence for notified goods or HSN and prescribed value of the goods, please see the notifications of the common portal web-site..
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What is consolidated e-Way Bill?
Consolidated e-Way Bill is a document containing the multiple e-Way Bills for multiple goods being carried in one vehicle. That is, the transporter, carrying the multiple consignments of various consignors and consignees in one vehicle, can carry one Consolidated e-Way Bill instead of carrying multiple e-Way Bills for those consignments.
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Who can generate the consolidated e-Way Bill?
The registered person or transporters can generate the consolidated e-Way Bills for movement of multiple consignments in one vehicle..
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Can the e-way bill be deleted or cancelled?
The e-Way Bill cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If it has been verified by any officer, then it cannot be cancelled. The cancellation of e-Way Bill may be required as the consignment may not be getting moved or the incorrect entry has been made in the e-Way Bill..
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Who can reject the e-Way Bill and Why?
The e-Way Bill has both the consignor and consignee details. The consignor or consignee, as a generator, may mention the other party as consignee or consignor accordingly.
There is a provision in the common portal for the other party to see the e-Way Bill generated against his/her GSTIN. As the other party, one can decide whether it belongs to him/her or not. If it does not belong to him/her, then he has option to reject it so that it will not be accounted for him/her. He/she has to reject it within 72 hours from generation date and time.
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If the goods having e-Way Bill has to pass through transit places and through different vehicles, how it has to be handled?
Some of the consignments are moved through transit places by transporters, before it is delivered to the destination place. The transporter moves these consignments from one transit place to another transit place. Hence for each movement from one place to another place, he needs to update the vehicle number in which he is moving that consignment..
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How long the e-Way Bill is valid to use?
Validity of the e-Way Bill depends upon the distance it has to travel. For every 100 Kms or part of it, it gets one day or 24 hours validity for movement of goods. After that it loses its validity..
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Which are the types of transactions that need the e-way bill?
All types of transactions of outward or inward supplies carried out by the registered person need to carry the e-Way Bill for movement of goods..
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Who is responsible to generate the e-Way Bill?
Every registered person, who causes movement of goods, needs to generate the e-Way Bill. If the registered person is unable to generate the e-Way Bill, the transporter who transports the goods can generate the e-Way Bill on behalf of his/her client..
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Can I use the different modes of transportation to carry the goods having the e-Way Bill? If so, how to update the details?
Yes, one can transport the goods in different modes of transportation – Road, Rail, Air, Ship. However, always E-Way Bill needs to be updated with the latest mode of transportation or vehicle number accordingly. That is, any point of time, the goods of the e-Way Bill on the portal should match with in which it is being moved..
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What are the documents need to be carried along with the goods being transported?
The person in charge of a conveyance shall 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..
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How to generate the e-Way Bill from different registered business places?
The registered person can generate the e-Way Bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-Way Bill. He/she can also create multiple sub-users and assigned to these places and generate the e-Way Bills accordingly..
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How can the GST tax payer register for the e-way Bill system?
All the GST registered persons can register on the e-Way Bill using his GSTIN. Once GSTIN is entered, the system sends the OTP to his registered mobile number and after authenticating the same, the system enables him to generate his/her username and password for the e-Way Bill system..
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Which are the modes of e-Way Bill generation the tax payer can use?
The e-Way Bill can be generated by the registered person in any of the following methods
o Using Web based system
o Using SMS based facility
o Using Android App
o Using Site-to-Site integration
o Using Suvidha Provider.
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How can the tax payer use the SMS facility to generate the e-Way Bill?
The tax payer has to register the mobile numbers through which he wants to generate the e-Way Bill on the e-Way Bill system.
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How can the tax payer use the Android App to generate the e-Way Bill?
The tax payer has to register the EMEI numbers of the mobiles through which he wants to generate the e-Way Bill on the e-Way Bill system.
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How can the tax payer integrate his/her system with e-Way Bill system to generate the e-Way Bills from his/her system?
The tax payer has to register the server details of his/her systems through which he wants to generate the e-Way Bill using the APIs of the e-Way Bill system.
REGARDS
ACA SOURAV BAGARIA
ACA SOURAV BAGARIA
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