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Eway Bill Notes
Eway Bill Notes
E-Way Bill
Relevant for May & Nov 2019 Exams
Statutory requirement: Section 68 of the CGST Act stipulates that the Government may
require the person in charge of a conveyance carrying any consignment of goods of value
exceeding such amount as may be specified to carry with him such documents and such
devices as may be prescribed. Rule 138 of CGST Rules, 2017 prescribes e-way bill as the
document to be carried for the consignment of goods in certain prescribed cases.
What is e-way bill? A waybill is a receipt or a document issued by a carrier giving details and
instructions relating to the shipment of a consignment of goods and the details include name
of consignor, consignee, the point of origin of the consignment, its destination, and route.
Electronic Way Bill (E-Way Bill) is a compliance mechanism wherein by way of a digital
interface the person causing the movement of goods uploads the relevant information prior
to the commencement of movement of goods and generates e-way bill on the GST portal. In
other words, E-way bill is an electronic document generated on the GST portal evidencing
movement of goods.
E-way Bill provisions [as contained in rules 138, 138A, 138B, 138C and 138D – Chapter XVI
of the CGST Rules, 2017] are elaborated as under:
In many cases, goods transit through another State while moving from one area in a State to
another area in the same State. It is important to note that E-way bill generation is not
dependent on whether a supply is inter-State or not, but on whether the movement of goods
is inter-State or not. Therefore, if the goods transit through a second State while moving
from one place in a State to another place in the same State, an e-way bill is required to be
generated [Circular No. 47/21/2018 GST dated 08.06.2018].
As discussed earlier in this chapter, in case of movement of goods for reasons other than
supply, the movement is occasioned by means of a delivery challan which has to necessarily
contain the value of goods. The value given in the delivery challan should be adopted in the
e-way bill.
Special situations where e-way bill needs to be issued even if the value of the consignment
is less than Rs. 50,000:
*Handicraft goods are the goods specified in Notification No. 32/2017-C.T. dated
15.09.2017 which exempts the casual taxable persons making inter-State taxable supplies of
such handicraft goods from obtaining registration [Refer Chapter – Registration].
In this complete scenario. two supplies are involved and accordingly two tax invoices are
required to be issued:
Invoice -1: which would be issued by ‘B’ to ‘A’.
Invoice -2: which would be issued by ‘A’ to ‘C’.
It is clarified that as per the CGST Rules, 2017, either A or B can generate the e-Way Bill but it
may be noted that only one e-Way Bill is required to be generated [Press Release dated
23.04.2018]
(II) Part B (transport details) [Transporter document number (Goods Receipt Number or
Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and Vehicle
number, in case of transport by road]: to be furnished by the person who is transporting the
goods.
**However, information in Part-A may be furnished:
by the transporter, on an authorization received from such registered person [First
proviso to rule 138(1)] or
by the e-commerce operator or courier agency, where the goods to be transported are
supplied through an such e-commerce operator or a courier agency, on an authorization
received from the consignor [Second proviso to rule 138(1)].
- Where the e-way bill is not generated by the registered person and the goods are
handed over to the transporter, for transportation of goods by road, the registered person
shall furnish the information relating to the transporter in Part B on the common portal and
the eway 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 [Rule 138(3)].
- Where the goods are transported by railways or by air or vessel, the e-way bill shall be
generated by the registered person, being the supplier or the recipient, who shall, either
before or after the commencement of movement, furnish, information in part B [viz
transport document number (Goods Receipt Number or Railway Receipt Number or Airway
Bill Number or Bill of Lading Number)] on the common portal [Rule 138(2A)].
- The registered person or, the transporter may, at his option, generate and carry the e-way
bill even if the value of the consignment is less than Rs. 50,000 [First proviso to rule 138(3)].
- 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 [Second proviso to rule 138(3)].
- 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 [Explanation 1 to rule 138(3)].
The consignor/recipient, who has furnished the information in Part A, or the transporter,
may assign the e-way bill number to another registered/enrolled transporter for updating
the information in Part B for further movement of the consignment [Rule 138(5A)]. However,
once the details of the conveyance have been updated by the transporter in Part B, the
consignor or recipient, as the case may be, who has furnished the information in Part A shall
not be allowed to assign the e-way bill number to another transporter [Proviso to rule
138(5A)].
A consignor is required to move goods from City X to City Z. He appoints Transporter A for
movement of his goods. Transporter A moves the goods from City X to City Y. For completing
the movement of goods i.e., from City Y to City Z, Transporter A now hands over the goods to
Transporter B. Thereafter, the goods are moved to the destination i.e. from City Y to City Z by
Transporter B.
In such a scenario, only one e-way bill would be required. Part A can be filled by the
consignor and then the e-way bill will be assigned by the consignor to Transporter A.
Transporter A will fill the vehicle details, etc. in Part B and will move the goods from City X to
City Y. On reaching City Y, Transporter A will assign the said e-way bill to the Transporter B.
Thereafter, Transporter B will be able to update the details of Part B. Transporter B will fill
the details of his vehicle and move the goods from City Y to City Z [Press Release No.
144/2018 dated 31.03.2018].
Consolidated e-way bill is a document containing the multiple e-way bills for multiple
consignments being carried in one conveyance (goods vehicle). That is, the transporter
carrying multiple consignments of various consignors and consignees in a single vehicle can
generate and carry a single document - consolidated e-way bill instead of carrying separate
document for each consignment in a conveyance.
Consolidated EWB is like a trip sheet and it contains details of different e-way bills in respect
of various consignments being transported in one vehicle and these e-way bills will have
different validity periods. Hence, Consolidated EWB does not have any independent validity
period. Further, individual consignment specified in the Consolidated EWB should reach the
destination as per the validity period of the individual EWB.
Further, where the consignor/consignee has not generated the e-way bill in Form GST EWB-
01 and the aggregate of the consignment value of goods carried in the conveyance is more
than Rs. 50,000, the transporter, except in case of transportation of goods by railways, air
and vessel, shall, in respect of inter-State supply, generate the e-way bill in 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 [Rule 138(7)].
However, where the goods to be transported are supplied through an ecommerce operator
or a courier agency, the information in Part A of Form GST EWB-01 may be furnished by such
e-commerce operator or courier agency [Proviso to rule 138(7)].
(8) Information submitted for e-way bill can be used for filing GST Returns
The information furnished in Part A of the e-way bill shall be made available to the
registered supplier on the common portal who may utilize the same for furnishing the details
in Form GSTR-1 [Rule 138(8)].
However, when the information has been furnished by an unregistered supplier/unregistered
recipient, he shall be informed electronically, if the mobile number or the e-mail is available
[Proviso to rule 138(8)].
(9) Cancellation of e-way bill: Where an e-way bill has been generated, 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 within 24 hours of generation
of the e-way bill [Rule 138(9)].
However, an e-way bill cannot be cancelled if it has been verified in transit in accordance
with the provisions of rule 138B [First proviso to rule 138(9)]. Further, unique EWB number
generated is valid for a period of 15 days for updation of Part B [Second proviso to rule
138(9)].
*Relevant date means 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 the period expiring at midnight of the day immediately
following the date of generation of e-way bill.
A consignor hands over his goods for transportation on Friday to transporter. However, the
assigned transporter starts the movement of goods on Monday. The validity period of e-way
bill starts only after the details in Part B are updated by the transporter for the first time.
In the given situation, Consignor can fill the details in Part A on Friday and handover his
goods to the transporter. When the transporter is ready to move the goods, he can fill Part B
i.e. the assigned transporter can fill the details in Part B on Monday and the validity period of
the e-way bill will start from Monday [Press Release No. 144/2018 dated 31.03.2018].
**Over dimensional cargo means a cargo carried as a single indivisible unit and which
exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989,
made under the Motor Vehicles Act, 1988.
In case, the person to whom the information in Part-A is made available, does not
communicate his acceptance or rejection within the specified time, it shall be deemed that
he has accepted the said details. The time-limit specified for this purpose is:
(i) 72 hours of the details being made available to him on the common portal
or
(ii) the time of delivery of goods,
whichever is earlier.
Tips to remember
1. E-way bill is not valid for movement of goods without vehicle number on it.
2. Once E-way bill is generated, it cannot be edited for any mistake. However, it can be
cancelled within 24 hours of generation.
3. E- Way Bill may be updated with vehicle number any number of times.
4. The latest vehicle number should be available on e-way bill and should match with the
vehicle carrying it in case checked by the department.
(c) where the goods are being transported from the customs port, airport,cair cargo complex
and land customs station to an inland container depot or a container freight station for
clearance by Customs
(d) in respect of movement of goods within such areas as are notified under of rule
138(14)(d) of the State or Union territory GST Rules in that particular State or Union territory
(e) where the goods [other than de-oiled cake], being transported, are exempt from tax vide
Notification No. 2/2017 CT(R) dated 28.06.2017
(f) where the goods being transported are alcoholic liquor for human consumption,
petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or
aviation turbine fuel
(g) where the supply of goods being transported is treated as no supply under Schedule III of
the Act
(i) where the goods being transported are transit cargo from or to Nepal or Bhutan
(j) where the goods being transported are exempt from tax under Notification No. 7/2017 CT
(R) 28.06.2017 [Supply of goods by the CSD to the Unit Run Canteens or to the authorized
customers and supply of goods by the Unit Run Canteens to the authorized customers] and
Notification No. 26/2017 CT (R) 21.09.2017 [Supply of heavy water and nuclear fuels by
Department of Atomic Energy to Nuclear Power Corporation of India Ltd. (NPCIL)]
(k) any movement of goods caused by defence formation under Ministry of defence as a
consignor or consignee
(l) where the consignor of goods is the Central Government, Government of any State or a
local authority for transport of goods by rail
(n) where the goods are being transported upto a distance of 20 km from the place of the
business of the consignor to a weighbridge for weighment or from the weighbridge back to
the place of the business of the said consignor subject to the condition that the movement of
goods is accompanied by a delivery challan issued in accordance with rule 55.
(o) where empty cylinders for packing of liquefied petroleum gas are being moved for
reasons other than supply
Documents in lieu of e-way bill: 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:
(a) tax invoice or bill of supply or bill of entry; or (b) a delivery challan, where the goods are
transported for reasons other than by way of supply [Rule 138A(5)].
(17) Facility for uploading information regarding detention of vehicle [Rule 138D]
Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the
transporter may upload the said information in specified form on the common portal.
(18) It may be noted that the expressions ‘transported by railways’, ‘transportation of goods
by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ used in the
provisions discussed above does not include cases where leasing of parcel space by Railways
takes place.