E-way Bill: Not applicable to whom?
Under the Goods and Services Tax (GST) regime, a taxpayer must provide the tax department with details of each transaction before the movement of goods via a conveyance. Upon submission, the taxpayer will receive an acknowledgment number. This acknowledgment number must then be used as a valid document to accompany the conveyance transporting the goods.
Statutory requirement
Section 68 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 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 document issued by a carrier that provides details and instructions concerning the shipment of goods. This document typically includes information such as the names of the consignor and consignee, the point of origin, destination, and route of the consignment.
An Electronic Way Bill (E-Way Bill) is a compliance tool that uses a digital interface. The person responsible for the movement of goods uploads the necessary information to the GST portal before the commencement of the shipment, thereby generating an e-way bill.
When is required to be generated?
E-way Bill is mandatory in case of movement of goods of consignment value exceeding ` 50,000.
Movement should be:
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
Registered person causing movement of goods shall furnish the information relating to the said goods in Part A of Form GST EWB-01 before commencement of such movement.
Exceptions for generation of E-way bill.
- Consignment value id less than Rs.50,000/-.
- Inter-State transfer of goods by principal to job-worker.
- Inter-State transfer of handicraft goods by a person exempted from obtaining registration.
Who causes movement of goods?
If supplier is registered and undertakes to transport the goods, movement of goods is caused by the supplier. If recipient arranges transport, movement would be caused by him.
If goods are supplied by an unregistered supplier to a registered recipient, movement shall be caused by such recipient (known at time of commencement of movement of goods).
Information to be furnished in e-way bill
Part A: to be furnished by the registered person** who is causing movement of goods.
**However, information in Part-A may be furnished:
- by the transporter if authorised or
- by the e-commerce operator/courier agency, if
authorised, where the goods are supplied through them.
Part B: to be furnished by the person who is transporting the goods.
Who can generate the eway bill?
E-way bill is to be generated by the registered consignor or consignee (if the transportation is being done in own/hired conveyance or by railways by air or by vessel) or the transporter (if the goods are handed over to a transporter for transportation by road). Where neither the
consignor nor consignee generates the e-way bill and the value of goods is more than ` 50,000 it shall be the responsibility of the transporter to generate it.
Consolidated Eway Bill in case of road transport
Once the e-way bills have been generated, if multiple consignments are to be transported in a single conveyance, the transporter can electronically input the serial numbers of each e-way bill related to the consignments on the common portal. Subsequently, a consolidated e-way bill in Form GST EWB-02 can be generated by the transporter on the same portal prior to the commencement of the goods movement [Rule 138(6)]..
Cancellation of e-way bill
If an e-way bill has been generated but the goods are either not transported or not transported according to the details provided in the e-way bill, it may be canceled electronically on the common portal within 24 hours of its generation [Rule 138(9)].
However, an e-way bill cannot be canceled if it has been verified during transit in accordance with the provisions of Rule 138B [First proviso to Rule 138(9)].
Validity period of e-way bill/ consolidated eway bill.
| Sl. No. | Distance within country | Validity period from relevant date* |
| 1 | Upto 200 km | 1 day in cases other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship |
| 2 | For every 200 km or part thereof thereafter | One additional day in cases other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship |
| 3 | Upto 20 km | One day in case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship |
| 4 | For every 20 km or part thereof thereafter | One additional day in case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship |
This can be explained by following examples –
(i) If an e-way bill is generated at 00:04 hours on 14th March, the first day will conclude at 12:00 midnight between 15th and 16th March. The second day will end at 12:00 midnight between 16th and 17th March, and so on.
(ii) If an e-way bill is generated at 23:58 hours on 14th March, the first day will end at 12:00 midnight between 15th and 16th March. The second day will end at 12:00 midnight between 16th and 17th March, and so forth.
Over-dimensional cargo refers to cargo transported as a single indivisible unit that exceeds the dimensional limits specified in Rule 93 of the Central Motor Vehicle Rules, 1989, which are established under the Motor Vehicles Act, 1988.
E-way bill generated in one State is valid in another State
An e-way bill generated under this rule or under Rule 138 of the Goods and Services Tax Rules of any State or Union Territory shall be valid across all States and Union Territories [Rule 138(13)].
Situations where e-way bill is not required to be generated
Notwithstanding anything explained above, no e-way bill is required to be generated in the following cases:
- where the goods being transported are the ones given below:
| SL. No. | Description of Goods |
| 1 | Liquefied petroleum gas for supply to household and nondomestic exempted category (NDEC) customers |
| 2 | Kerosene oil sold under PDS |
| 3 | Postal baggage transported by Department of Posts |
| 4 | Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71) |
| 5 | Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) [excepting imitation Jewellery (7117)] |
| 6 | Currency |
| 7 | Used personal and household effects |
| 8 | Coral, unworked (0508) and worked coral (9601)] |
- where the goods are being transported by a non-motorised conveyance.
- where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.
- 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.
- where the goods [other than de-oiled cake], being transported, are exempt from tax.
- 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.
- where the supply of goods being transported is treated as no supply under Schedule III of the CGST Act28.
- where the goods are being transported – (i) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or (ii) under customs supervision or under customs seal.
- where the goods being transported are transit cargo from or to Nepal or Bhutan
- 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)]
- any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee.
- where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail
- where empty cargo containers are being transported.
- 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.
- where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply
E-way Bill requirements
Goods in transit, including those stored in the transporter’s warehouse (even if the warehouse is located in the recipient taxpayer’s city or town) before delivery, must always be accompanied by a valid e-way bill. The transportation under the e-way bill is considered complete once the goods reach the transporter’s warehouse (the recipient taxpayer’s Address of Place of Business, or APoB). Therefore, the validity of the e-way bill in such cases does not need to be extended. Additionally, if the goods are moved from the transporter’s warehouse to any other place of business of the recipient taxpayer, a valid e-way bill is required.
Verification of documents and conveyances [Rule 138B]
The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill in physical or electronic form for all inter-State and intra-State movement of goods.
The Commissioner shall get RFID 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.
However, on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.
Inspection and verification of goods [Rule 138C]
A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of a prescribed form within 24 hours of inspection and the final report in Part B of said form shall be recorded within 3 days of such inspection.
However, where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of said form, for a further period not exceeding 3 days. The period of 24 hours or, as the case may be, 3 days shall be counted from the midnight of the date on which the vehicle was intercepted.
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