E-Way Bill System 2024 : Everything You Need to Know

Introduction

E-Way Bill System: On introduction of GST w.e.f. 01/07/2017 many States have removed the physical barriers at State borders for transport of goods by road. In some Extent it has fasten the movement of goods.

In absence of physical restrictions on movement of goods, some control is essential to ensure that goods are to be move without having a chance to cheat. Hence a Mechanism of E-way bill has been introduced.

Government has notified under Rule 138 of Goods and Services Tax Rules, 2017 to carry e-way bill for transportation of goods of consignment value more than 50,000/- INR to facilitate smooth flow of goods within a state and Inter State. Hence e-way bill generated from the common portal is required to be carried by Person in charge of the Conveyance.

If you don’t have an Valid e-way bill, you might face penalties under Section 129 or your goods could be confiscated under Section 130, depending on the situation.

What is E-Way Bill System

The Term E-way Bill stands for “Electronic Way Bill”. It is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding 50,000/- INR.

(Governed by Rules 138 to 138E of CGST Rules 2017)

E-Way Bill Applicability Dates: Interstate and Intrastate Movements

• Interstate Movement of Goods – Applicable from 1st April 2018
• For Intra State Movement of Goods- Refer Annexure

S No	State/ Union Territory	Applicable  Date
1	Jammu and Kashmir	01/06/2018
2	Himachal Pradesh	01/06/2018
3	Punjab	01/06/2018
4	Chandigarh	25/05/2018
5	Uttarakhand	20/04/2018
6	Haryana	20/04/2018
7	Delhi	16/06/2018
8	Rajasthan	20/05/2018
9	UttarPardesh	15/04/2018
10	Bihar	20/04/2018
11	Sikkim	25/04/2018
12	Arunachal Pardesh	25/04/2018
13	Nagaland	30/04/2018
14	Mizorm	01/06/2018
15	Tripura	20/04/2018
16	Meghalya	25/04/2018
17	Assam	16/05/2018
18	West Bangal	03/06/2018
19	Jharkhand	20/04/2018
20	Odisha	01/06/2018
21	Chhatishgarh	01/06/2018
22	Madhya Pardesh	25/04/2018
23	Gujarat	15/04/2018
24	Daman & Diu	25/05/2018
25	Dadar & Nagar Haveli	25/05/2018
26	Maharashtra	25/05/2018
27	Karnataka	01/04/2018
28	Goa	01/06/2018
29	Lakshyadweep	25/05/2018
30	Kerala	15/04/2018
31	Tamil Nadu	02/06/2018
32	Puducherry	25/04/2018
33	Telangana	15/04/2018
34	Andhra Pradesh	15/04/2018
35	Andaman and Nikobar	25/05/2018

Who shall generate E-way bill

When to Generate E- Way Bill

Mandatorily

There are three Conditions which needs to be fulfilled for Eway Bill generation Mandatorily

1.) Transaction involves Movement of Goods

2.) Consignment Value shall be more than 50,000 INR (2 Exception)

3.) Movement is caused by Registered Person (Either Consignor or as Consignee ) (1 Exception)

(Shall be generated before commencement of movement of Goods)

Cases Where Consignment Value is less than 50,000/- but Eway Bill is mandatory

• Consignment sent for Job Work involving Inter State Movement
• Movement for Handicraft Goods involving Inter State Movement

Case Where Movement is caused by Unregistered Person

• Unregistered Person causing movement of Goods to GST Registered Recipient, Then Such movement shall be deemed to be caused by Registered Person.

Voluntarily

• If Consignment Value is less than 50,000 INR, then Registered Person/ Transporter can generate EWB
• Movement caused by Unregistered Person, Then URP/ Transporter may generate EWB

Reasons for Transportation can be either of the following

1. Supply
2. Export or Import
3. Job Work
4. SKD or CKD
5. Recipient not Known
6. Line Sales
7. Sales Return
8. Exhibition or Fairs
9. For Own Use
10. Others

Contents/ Format of E-way bill

A.1 GSTIN of Supplier- If supplier is unregistered, Indicate ‘URP’.

A.2  Place of Dispatch – Giving Pin Code of Place of Dispatch.

A.3 GSTIN of recipient – If recipient is unregistered, indicate ‘URP’.

A.4 Place of Delivery- PIN code of place of delivery shall be indicated

A.5 Document Number – Tax Invoice, Bill of Supply, Delivery challan or Bill of Entry(when goods transported from Port/ airport/Customs warehouse.

A.6 Document Date – The date of the aforesaid document should be supplied

A.7 Value of Goods- Value shall be as per Section 15 of CGST Act, as declared in tax invoice, bill of supply or delivery challan. The value should be inclusive of IGST, CGST, SGST and GST Compensation Cess , but exclusive of value of Exempted Goods  – Explanation 2 to Rule 138(1) of CGST Rules.

A.8  HSN Code- HSN Code

Value of Consignment in Part A to be inclusive of Tax

The Consignment value of goods shall be the value, determine in accordance with the provisions of Section 15 of CGST Act, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment.

Value of Material in case of Job Work – In case of material sent for job work or returned after job work, the value should be inclusive of value of Goods, The value cannot be mere value of Job/ labour charges.

Bill to Ship’ to Transactions

‘Bill to Ship to’ Transactions are those where bill is in the name of one person while goods are dispatched/ delivered to another person.

• A has ordered B to send Goods directly to C
• B is sending goods directly to C on behalf of A
• C is the recipient of Goods

Two Transactions is involved and Two Invoices will be raised
Invoice – 1 which would be issued by B to A
Invoice – 2 which would be issued by A to C
But remember one thing; only One E-way bill shall be generated in whole of this transaction

In this scenario E-way bill can be generated by Mr. A and Mr. B

Case -1 E-way bill is generated by B, the following field shall be filled in Part A of EWB- 01

1	Bill From :	Details of B are supposed to be filled
2	Dispatch from:	Details of Place of business of B is to be filled
3	Bill To:	Details of A are supposed to be filled
4	Ship To:	Address of C is supposed to be filled
5	Invoice Details:	Details of Invoice- 1 are supposed to be filled

Case -2 E-way bill is generated by A, the following field shall be filled in Part A of EWB- 01

1	Bill From :	Details of A are supposed to be filled
2	Dispatch from:	Details of Place of business of B is to be filled
3	Bill To:	Details of C are supposed to be filled
4	Ship To:	Address of C is supposed to be filled
5	Invoice Details:	Details of Invoice- 2 are supposed to be filled

Validity of E-way Bill

The validity of an e-way bill is determined from the date of its generation. Eway bill validity depends on two major things

Kilometers or days whichever is earlier; and

Cargo used for the movement (Normal Cargo or Over dimensional cargo)

Type of Conveyance	Kilometers(Distance)	E-way Bill Validity
Normal Cargo	Upto 200 KM	One Day
	Every additional 200 Km	One Additional Day
Over Dimensional Cargo	Upto 20 Km	One Day
	Every additional 20 Km	One Additional Day

Extension of Validity period of E-way Bill

Validity Period can be extended for reasons like delay due to vehicle breakdown, natural calamity, Law & Order issue on the transit or Transshipment delay etc.

There is provision to extend the validity period of E-way bill by applying before 8 hours or after 8 hours of expiry of validity.

Procedure
After login—->E-way bill—–>Extend Validity—->Fill E-way bill number—>Fill required details in Part B

Route distance will be calculated on the basis of PIN Code where presently consignment is located.

Cancellation of E-way Bill

If an e-way bill has been generated under Rule 138 of CGST Rules, 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 within 24 hours of generation of the e-way bill (Rule 138(9) of CGST Rules, 2017)

It is worthwhile to note that If E-way bill has been verified in transit in accordance with the provisions of Rule 138B, Then E-way bill cannot be cancelled(Proviso to rule 138(9) of CGST Rules, 2017)

Cases When E-way bill is not required under GST laws

• When goods are specified in Annexure
• When Goods are being transported in NON MOTORISED CONVEYANCE
• When goods are transported from Port, Airport, Air cargo, Land Customs station to and Inland container Depot or a Container freight station for clearance by Customs
• When movement of goods within such areas which are notified by concerned State because each state has delegated powers to grant exemptions from E-way Bill generations
• Alcoholic liquor for human consumption, Petroleum crude, HSD, petrol, Natural Gas or aviation turbine fuel
• When Goods are transported Under Custom bond from ICD or CFS to Custom Port, Airport, Air cargo and land Custom Station, or from One Custom Station/ Custom Port to another Custom Station/ Custom Port
• When Goods are transported under Custom supervision or under Custom seal
• When Goods are transported are transit cargo from or to Nepal and Bhutan
• Goods Movement To or From Defence Formation(Under Ministry of Defence)
• When Consignor is Government(Central Govt, State Govt or Local authority) for transport of Goods by Rail
• Where the goods are being transported upto a distance of 20 KM from the place of business of the consignor to a weighbridge for weightment or from weighbridge back to the place of business of the said consignor subject to the condition that the movement of goods is accompanied by a deliver challan issued in accordance with rule 55.

Penalties for non generation of E-way Bill in GST laws

Where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of the Act or the rules made thereunder, all such goods and documents relating to such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released –

• Where the owner of the goods comes forward for payment of such penalty
  Taxable Goods – On payment of penalty Equal to 200% of the tax payable on such goods
  
  Exempted goods – On payment of an amount equal to 2% of the value of goods OR Rs. 25,000/- Whichever is less
  
• Where the owner of the goods does not come forward for payment of such penalty
  Taxable Goods – On payment of penalty Equal to 50% of the value of the goods or 200% of the tax payable on such goods Whichever is higher
  
  Exempted goods, on payment of an amount equal to 5% of the value of goods or Rs. 25,000, whichever is less

Transporter can get his conveyance released upon payment of Lower of the Following:

• Above mentioned Penalty
• 100000/-

(If owner of the goods does not come forward, the penalty in respect of the Goods can be recovered only by sale of seized goods)

E Way Bill Blocking

Rule 138E CGST Rules 2017

In respect of any Outward Movement of Goods of a Registered Person Who –

• Has not furnished GSTR 1 for 2 consecutive Month/ Quarter
• Has not furnished GSTR 3B for 2 consecutive Month/ Quarter
• Registration has been Suspended

Auto Blocking by EWB Portal
The integration between the GST Portal and the E-Way Bill (EWB) Portal dictates that in the event of a GST Identification Number (GSTIN) being subject to the provisions outlined in Rule 138E, said GSTIN will be rendered ineligible for generating E-Way Bills for outward supplies.

Auto Unblocking by EWB Portal
The generation of E-Way Bills (EWB) will be restricted if the submission of GSTR-1 or GSTR-3B remains outstanding for two consecutive months or a quarter. However, once the return for the default period is filed, thereby reducing the default period to less than two consecutive tax periods, the portal will automatically unblock EWB generation on the following day.

Key Takeaways

Multi- Vehicle Option

When the registered person wants to move the consignment of one E-way bill in multiple vehicles, after moving to transshipment place, He can use the “Change to Multi Vehicle” sub option provided under “e-way bill” option in the main menu.

For Example, Let’s say one e-way bill is generated to move the consignment from Place to Place C. Here the consignment moves from A to B via bigger vehicle. Now It is not possible  move the consignment from B to C in the same mode of transportation due to unavailability of that mode or may be due to hilly region where big vehicles can not be used. In such cases the consignment can  be moved n multiple in smaller vehicles using the multi- Vehicle option.

Line Sale

When Salesman carries goods with him, goes from door to door or Shop to Shop and sales the goods. Usually He carries invoice book and prepare invoice at the time of deliver the goods.

What about when there is Sale of Goods and Movement of Goods not exist –

After delivering goods to B, A realizes that some consumable items were not included in the delivery. These items have a low value. B suggests that A can use the consumable items, and later B will provide an invoice for them, let’s say for a total of 10,000 rupees.

A agrees to this arrangement, and B proceeds accordingly. The consumable items are used within B’s factory premises and later sold by B to A. This means that there is a supply from B to A, even though there is no physical movement of goods between them.

Since the goods are used within B’s premises and then sold to A, there is no need for an E-way bill in this case.

E-Way Bill System is not required in case of Supply of Services

E-way Bill is not required for pure supply of services, where movement of goods is not involved.

However E-way bill is required where Goods and Services is both involved in single transaction like Works Contract etc.

Moving Goods in multiple Vehicles under One Invoice

If goods are transported in a semi knocked down (SKD) or completely knocked down(CKD) condition, EWB shall be generated for each of such vehicles, based on delivery challan issued for that portion of consignment as per CGST Rule 55(5) , Complete Invoice shall be issued before dispatch of first consignment. Delivery challan shall be issued for each subsequent consignment giving reference of invoice.

Each consignment shall be accompanied by delivery challan and certified copy of invoice, original copy will be sent with last consignment.

It is advisable to issue separate invoices for each consignment.

Multiple Consignments in one conveyance –

If e-way bill has been generated in accordance with the provisions of rule 138(1), And multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and A consolidated e-way bill in the form EWB-02 may be generated by him prior to the movement of goods (Rule 138(6) of CGST Rules)

Enhancements

• E-way bill system integrated with FASTAG and VAHAN

E- way Bill System has been integrated with VAHAN(Ministry of Road Transport AND Highways) and Fastag.  Vahan provides for validation of vehicle details, While Fastag provides data from automated toll plazas on movement of vehicles.

• The Validity period of e-way bill is changed from 100 km per day to 200 km per day from 01/01/2021

The validity period od e-way bill is decided based on the distance from origin to destination. Previously, for every 100 KM or part, the validity was 1 day. However as per the new notification, the validity is changed from 100 KM to 200 KM per day.

• E-way bill can be generated only if it at least one line item belongs to Goods.

As E-waybills are required for only Goods, the system validates at least one line item should have HSN Code belonging to Goods.

• Blocking of GSTIN for E-way bill generation is now considered only for the defaulting Supplier GSTIN and not for the defaulting Recipient or Transporter GSTIN.

Blocking of EWB generation due to non- filing of Returns is done based on only Supplier GSTIN