E way Bill under GST
E-Way Bill is an electronic receipt which is needed to be generated for the transfer of goods from one place to another. This bill is only created for the consignments which are above the value of Rs. 50,000.
The consignment value of the goods is the value which will be determined according to the provisions provided under section-15, declared in the bill, an invoice of supply or a delivery challan, whatever the case maybe, given in respect of the said shipment and is also inclusive of the central tax, state or Union territory tax, integrated tax and if any cess is charged in the documents. It will leave out the value of the exempted supply of goods where the bill is issued in respect to the exempted and the taxable goods.
In the 26th council meeting, it was decided to introduce the E-way bill on 1st April 2018 for all the inter-state movement of goods. For intra state same is applicable effective June 2018 in a phased manner.
Generation of E-way Bill (For Inter state movements of goods)
|Registration of Receiver||Registration of Trader||Mode of transportation||Transporter||EWB-01 Part-A||EWB-01 Part-B|
|Registered||Registered||Via road, through the transporter||Registered||Person who is the reason for movement and is registered||See note-1|
|Registered||Registered||Via road, through the transporter||Unregistered||Do||Do|
|Registered||Registered||Via rented or personal vehicle. Or through public mode of transportation||NA||A person who is registered and owns a vehicle in case the movement is in the personal vehicle
OR who has rented the vehicle
The person who is creating the movement of the goods
|Same as part A|
|Registered||Registered||Via train or air or vessel||NA||The registered person who is causing the movement of goods||Do|
|Unregistered||Registered||Via road, through the transporter||Registered||A person who is registered.
Also refer to note 2
|Refer to note-1|
|Unregistered||Registered||Via road, through the transporter||Unregistered||Do||Do
|Unregistered||Registered||Personal or rented vehicle or public transport||NA||Do||Do|
|Unregistered||Registered||Via air or train or any vessel||NA||A person who is registered||A person who is registered|
It is important to fill up Part-B because without filling this part, the EWB number cannot be procured. The person who fills up Part A also has the responsibility for filling up Part B. But according to sub rule 3, if the person who fills part A does not have the details of the vehicle which would carry the goods, then in that case he can mention the GSTIN of the registered transporter or the ID of the transporter of the unregistered transporter. In such a case, the transporter has to provide the details of vehicle in part B for getting the EWB number.
If a registered person purchases goods from an unregistered person then it will be treated as the registered person is causing the movement of goods. This has been mentioned in Note-1 sub rule 3. Therefore the entire responsibility in respect to the E-way bill will fall on the shoulders of the person who is registered, i.e., the purchaser.
But if the registered person is the supplier and the purchaser of goods is the unregistered person, and the goods are being transferred through road then we will have to check who is causing the movement. If the movement is being made by the registered person, for instance he has rented the transporter or the vehicle is his personal vehicle then he will have to obey with the rule of E-way bill. But if the unregistered person is the reason for the movement of goods, then it is optional to obey with the rules as given in second provision to sub rule 3.
In our view, if the sale is being made by the registered seller to the unregistered purchaser then it is always practical to obey with the rules of E-way bill irrespective of the fact that the movement of goods is being caused because of whom. This is done to evade legal action and chaos free movement of goods.
Rule 138 (Basic Rules)
Rule 138(1)(2)(3) cast first liability of E Way Bill on registered person who causes movement (as explained above in table), it may be noted that in case both registered party (supplier and recipient) practically E Way bill can be generated by any one of them.1st proviso
First Proviso of Rule 138(3) gives an option to Registered Person Or the Transporter to generate the E Way Bill even if value of consignment is < Rs. 50,000
Second proviso of Rule 138(3) gives option even to unregistered party to generate E Way bill. However currently for registering on E Way Bill portal GSTIN is required. Although there is an option for unregistered Transporters to register with portal by generating Transporter ID with their Valid PAN. In our opinion option for unregistered person also will be activated soon.
Transportation by Rail/air/vessel – Rule 138 (2A)
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, on the common portal, the information in Part B of FORM GST EWB-01
Parts of E-way Bill
This part consists of the following.
- Details of GSTIN of the recipient,
- The place where the goods will be delivered or PIN Code,
- Invoice number or challan number and date,
- HSN code, and
- Transfer document number (Goods Receipt Number or Railway receipt Number or Airway Receipt Number or Bill of Landing Number; reasons for transportation.
This part consists of details of the transporter like vehicle number. If the goods which are being transported are above the worth of Rs 50000, then this will lead to the creation of E-way bill by all the registered people under Rule 138 of the CGST Rules, 2017. In the e-way bill produced, all the details of the goods will be mentioned in Part-A and the details of the transport will be included in Part-B.
Legality of the E-way Bill
|Distance to be covered by the goods||Period of validity|
|When the distance to be covered by the goods is less than 100 km||The E-way bill is valid for 1 day after the e-way bill has been procured.
|When the distance to be covered by the goods is more than 100 km||The validity would be increased by one day after the e-way bill has been procured.|
The period of validity is calculated from the time at when the e-way bill is generated. Each day is counted as twenty-four hours. In other words, the validity of e-way bill cannot be extended due to any reason.
Only in case of certain categories of goods, can the officer extend the validity of the e-way bill. Those categories of goods will be announced later by the government authorities. In case the goods are not transported to the receiver due to any reason, the officer can procure another e-way bill after updating all the information in Part-B of FORM GST EWB-01.
Documents required by the transporter
According to rule 138(A)(1) of CGST 2017, the person who is responsible for a vehicle should have with him the following documents.
1.The tax bill of supply or delivery challan.
2. A duplicate copy of the e-way bill or the e-way bill number. This can either be physically or the vehicle should have a radio frequency device attached to it so that the entire information about the bill and the consignment can be generated.
A registered person can attain the Invoice Reference Number by uploading the tax bill given by him in Form GST INV-1. This can be shown for checking by the officer in place of the tax bill. This number is valid for one month from the date of uploading.
Role of Transporter in E-way Bill
The applicability of transporter has been explained in the points.
- Ultimate responsibility of procuring E-way bill
According to Rule 138(7) of CGST 2017, the transporter has the final responsibility to generate the E-way bill. In case of inter-state movement of goods which is not done through road, if the supplier and the purchaser have not generated E-way bill according to Rule 138(1), (2) and (3) of CGST 2017, then it is the duty of the transporter to fill Part A and part B as invoice of supply or challan for the delivery given to him for the transportation of the goods.
- Numerous shipments in a single vehicle
If numerous shipments are being carried on a single vehicle then the transporter should inform the serial number of the E-way bill procured with respect to every shipment. This should be done electronically on the common portal and a compiled E-way bill in Form GST EWB-02 can be initiated by the transporter. This bill will be generated by him on the common portal before the movement of the goods begins.
- Changing the vehicle for goods during the movement
According to Rule 138(5) of CGST 2017, if the transporter has to change the vehicle during the transit because of any accident or mishap, then the transporter should update the details of the new vehicle before he commences the movement of good again. The details are to be informed in the E-way bill on the common portal in FORM GST EWB-01. But this data can also be given by the person who fills Part A while getting the E-way bill.
Transporter ID concept
Transporter who hold GSTIN are not required to do anything regarding the E-way bill. They can release their liabilities of E-way bill by login through their GSTIN on E-way bill portal.
But section 35(2) of CGST Act, 2017 in accordance with rule 58 makes it compulsory for all the transporters who have not registered themselves under GST to register themselves by filling the form ENR-01. The result of registering through this form is the Transporter ID.