E-way bill – Simplified
ELECTRONIC WAY BILL (SECTION 68 & RULE 138 OF CGST RULES, 2017)
What is an E-way bill and why is it required?
E-Way Bill is a compliance mechanism wherein by way of 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.
Who and when E-way bill is required to be generated?
Who- Every registered person (Supplier or recipient) who causes the movement of the goods:
In relation to a supply or
Reasons other than supply or
Due to inward supply from an unregistered person
When- Consignment value exceeds Rs. 50,000.
How to Determine the consignment value of goods?
Consignment value of goods shall be the value:
Determined as per Section 15 or
Declared in invoice/ Bill of Supply/ Delivery Challan in respect of the consignment.
The above value includes CGST/ SGST/ UTGST/ IGST and cess, if any, in the document and shall exclude the value of exempt supply where invoice is issued for both exempt and taxable supply of goods.
What are the details to be furnished in E-Way Bill?
Part-A of E-Way Bill
GSTIN of the Supplier
Place of Dispatch (indicating Pin code)
GSTIN of the Recipient
Place of Delivery (indicating Pin code)
Document Number and Date (As per Invoice/ Bill of supply/Delivery challan/ BOE)
Value of goods
HSN Code (Up to 5 Cr - 2 digit / above 5 Cr - 4 digit)
Reason for transportation
Part-A cannot be furnished if the return is not filed for
2 consecutive tax period in case of person paying tax under composition scheme;
2 consecutive months/ quarter for person paying tax under regular scheme.
Part-B of E-Way Bill
Vehicle Number
Transporter Document Number (As per Goods Receipt/ Railway Receipt/ Airway Bill Number or Bill of Lading Number)
It is not mandatory to furnish details in Part-B where the goods are transported for a distance up to 50 Km within the state/ Union Territory.
When E-Way Bill is required to be generated?
Good transported by Railway/ Air/ Vessel- By the registered person (Supplier/ recipient) and the information in Part-B can be filled before/ after commencement of movement of goods but the goods shall not be delivered unless E-Way Bill is produced.
Good transported by Road- E-Way bill to be generated before the commencement of movement of goods.
When goods are transported via
Self-Transportation (Own Vehicle/ Hired/ Public Conveyance) then both Part–A and Part-B of the E-Way Bill is furnished by the registered person.
Third Party Transported (Goods transport agency) then Part-A of the E-Way Bill relating to consignment details is furnished by Registered person and Part-B relating to vehicle number is furnished by the transporter.
In case the Goods Transport Agency is unregistered, a Unique Enrolment Number (UEN) is furnished.
If the Goods Transport Agency is registered with single registration, then GSTIN has to be furnished. In case of GTA has multiple registration, common UEN is furnished.
When E-Way Bill is not required to be generated?
Non Taxable Goods
Jewellery/ Precious stones
Postal baggage transported by department of post
Used personal and household effect
Currency
Empty cargo container
Goods transported by non-motorised conveyance.
Movement of goods under ministry of defence
Supply under schedule- III
Supply under Custom supervision
Note: The above list is not-exhaustive and there are other cases where E-Way Bill is not required.
What is the validity of E-Way Bill?
In case of Over dimensional Cargo | Other than over dimensional cargo | ||
Up to 20 Km | For every additional 20 Km or Part | Up to 100 Km | For every additional 100 Km or Part |
1 Day | 1 additional day | 1 Day | 1 additional day |
Note: In case of multimodal shipment in which at least one leg involves transport by ship, both of the above options are available. | |||
Validity of E-Way bill starts when first entry is made in Part-B. Validity is not re-calculated for subsequent entries in Part-B.
Each day ends on 12:00 midnight.
Validity of E-Way bill may be extended within 8 hours from the time of its expiry.
E-Way bill is not valid for movement of goods without vehicle number on it.
E-Way bill may be updated with vehicle number any number of times and the latest vehicle number should be available on E-Way bill and should match with the vehicle carrying it.
When is an E-Way Bill Accepted/ Rejected/ Cancelled?
The details of the E-Way bill generated shall be made available to the supplier and recipient on the common portal. If the person does not communicate his acceptance or rejection within the specified time, it shall be deemed accepted.
Rejection | Cancellation |
Within 72 hours of details made available on common portal; or | Goods not transported. |
Cancellation can be done on common portal within 24 hours of generation.
E-Way bill is non-editable. In case of mistake, it has to be cancelled within 24 hours.
Unique EWB number generated at the time of furnishing details in Part-A is valid for 15 days for updation of Part-B.
What is the penalty for transporting goods without E-Way Bill?
U/s 122(1)(xiv) of CGST Act, 2017 |
Taxable person transporting the goods without cover of specified documents (e-way bill is one of the specified document) liable to penalty of Rs. 10,000 or tax evaded (whichever is higher) |
U/s 129(1) of CGST Act,2017 | |
Detention or seizure of goods & conveyance. Such goods shall be released on payment of applicable tax and penalty. The penalty shall be: | |
(a) Owner of goods comes forward:
| (b) Owner of goods does not come forward:
|
Or upon furnishing security of the amount payable as per clause (a) or (b) above. | |
For example, if taxable goods of Rs. 1,00,000 (GST Rate 18%) is detained due to transportation without E-Way bill, the penalty would be as follow:
If the Owner comes forward, then amount payable: Rs 36,000
(Tax- Rs 18,000 and Penalty Rs. 18,000 as 100% tax payable).
If the owner does not comes forward, then amount payable: Rs. 50,000
[Tax- Rs 18,000 and Penalty of Rs. 32,000 (i.e. Rs. 50,000 as 50% of value of goods less Rs. 18,000 tax payable)]
In the above example, if the goods transported were exempted goods, the penalty would be as follow:
If the Owner comes forward, then amount payable: Rs 2,000
(Lower of Rs. 2,000 or Rs. 25,000).
If the owner does not comes forward, then amount payable: Rs. 5000
(Lower of Rs. 2,000 or Rs. 25,000)
It has been clarified vide Circular No. 76/50/2018 GST dated 31.12.2018 that, if invoice or any other specified document is accompanying the consignment of goods, then either consignor or consignee should be deemed owner. If invoice or any other specified documents not accompanied, then the proper officer would determine who should declare as the owner of goods.
By CA Tulika Khetan
(Partner, S S Singhvi & Associates)