Understanding E-way bill rules – Rule 138 of CGST Rules, 2017

1. What is an E-way bill?

• E-way bill is an electronic document generated on the GST portal evidencing the movement of goods.

2. What is the purpose of E-way bill?

• E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track the movement of goods and check tax evasion.

3. What is the threshold limit to issue E-way bill?

• As per Rule 138 of the CGST Rules, 2017, an E-way bill must be generated and carried along during the course of transportation of goods, if the value of the consignment exceeds Rs. 50,000.
• The threshold limit of Rs. 50,000 applies for the inter-state movement of goods.
• The states were given the option to set limits for intra-state movement which various states exercised. (Refer FAQ No 18)

4. Cases where E-way bill is required for the movement of goods with a consignment value less than Rs. 50,000

• Inter-State movement of Goods by the Principal to the Job-worker
• Inter-State Transport of Handicraft goods by a person exempted from GST registration.

5. What do you mean by consignment value?

• It is the value declared in the invoice, bill of supply or delivery challan issued
  • It includes the CGST, SGST, IGST and Cess charged if any.
  • It will not include the value of exempt supply and the value of freight charges for the movement charged by the transporter.

6. What is the validity of an e-way bill?

Note: Over Dimensional Cargo means cargo carried as a single indivisible unit which exceeds the dimensional limit prescribed in Rule 93 of the Central Motor Vehicle Rules, 1989.

7. Can the validity of an E-way bill be extended?

• The Validity of an E-way bill can be extended only by the transporter.
• The validity can be extended 8 hours before or within 8 hours after expiry.
• There can be multiple reasons which could require an extension of the validity period of an e-way bill such as any change in the transport vehicle, or breakdown.

8. Can an E-way bill be cancelled? If so, who can cancel the E-way bill?

• The e-way bill once generated cannot be deleted. However, it can be cancelled.
• It should be generated within 24 hours of generation.
• If a particular EWB has been verified by the proper officer during the course of transit, then it cannot be cancelled.

9. Can we edit the particulars given in an E-way bill once it is generated?

• Once an E-way bill is generated, it cannot be edited or corrected. However, it can be updated
• Updation is also permitted only to the extent of modifying the details of the transporter in case of a change in the transporter for further movement or change of vehicle number in event of the breakdown of the vehicle.

10. Who can update the E- way bill?

• The present transporter can only update details relating to the next transporter and subsequently, the next transporter can update Part-B until he has been changed.
• If the transporter is not there, then the generator of the e-way bill can update the transporter.
• The user also needs to give the reason for which the vehicle is being changed

11. Who is responsible for generating E-way bill?

• Registered consignor/consignee or a registered transporter of the goods can generate an e-way bill.
• In case the supplier is unregistered, the recipient being a registered person shall ensure that all the compliances relating to the E-way bill have been adhered to as if he is the supplier.
• In case the transporter is unregistered, he should enrol himself in the E-way bill portal using his PAN. He will be allotted a unique transporter ID using which he can generate E-way bills.

Note:

• If cases where the transporter is transporting goods with multiple invoices of value less than Rs. 50,000 in a single conveyance. E-way bill is mandatory if the aggregate value of goods transferred via a single conveyance exceeds Rs. 50,000.
• In such a case, the transporter is required to generate the e-way bill.

12. What are the components of an E-way bill (GST EWB 01)?

• An E-way bill is divided into two components, Part A and Part B

Note: An E-way bill is complete and can be used for the movement of goods only if both parts are filled. Except in the following case,

• If the goods are transferred within a 50 km radius from the place of business of the consignor to the place of business of the transporter for further transportation of goods – Part B of form EWB 01 is not required (this relaxation is only applicable to movement within the same state or union territory)

13. Should an e-way bill be generated if the goods are transported in the supplier’s own vehicle/conveyance?

• Yes, an E-way bill should be generated even if the goods are transported in the supplier’s own vehicle.

14. Can the recipient accept/reject an E-way bill generated by a supplier?

• Yes, the recipient is required to accept/reject the E-way bill generated by the supplier.
• If the acceptance or rejection is not communicated within 72 hours from the time of generation of the e-Way Bill, it is deemed that he has accepted the details.

15. What are the circumstances where an E-way bill is not required for the movement of goods?

• Transport of goods specified in annexure to Rule 138(14) of CGST rules, 2017.
• Transport of exempt goods.
• Goods being transported in a non-motorised conveyance.
• Goods 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
• Transport of alcoholic liquor for human consumption, petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel.
• Goods being transported are treated as no supply under Schedule III of the Act;
• where the goods are being transported
  1. 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
  2. under customs supervision or under customs seal;
• Transit cargo transported to or from Nepal or Bhutan.
• Movement of goods caused by defence formation under the Ministry of defence as a consignor or consignee.
• Transport of empty Cargo containers.
• Consignor transporting goods to or from between the place of business and a weighbridge for weighment at a distance of 20 km, accompanied by a Delivery challan.
• Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or local authority.
• Empty cylinders for packing liquefied petroleum gas are being moved for reasons other than supply

16. Who is prohibited from generating an E-way bill?

• Any registered person who has not filed GSTR 1 or GSTR 3B for 2 or more consecutive tax periods.
• Any registered composite dealer who has not filed GST CMP 08 for 2 more consecutive tax periods
• Any registered person whose GSTIN has been suspended. (However, a person with a suspended GSTIN can still receive E-way bills)

17. Generation of E-way bill in case of a bill-to-ship-to transaction?

• In the case of “Bill to Ship to” transactions, one E-way bill is sufficient and can be generated either by the consignor or consignee.

18. What do you mean by a consolidated E-way bill?

• Where multiple E-way bills have been generated for goods to be transported in a single conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment and generate a consolidated e-way bill in FORM GST EWB-02 before the movement of goods.

Intra-state threshold limits for E-way bills

• As per the CGST Rules, an E-way bill has to be generated when the value of goods exceeds Rs. 50,000. However, in respect of supplies within the state, the states were given the option to set the threshold limit, which are as follows,

E-way bill threshold limit and applicable states