What is e way bill? e way bill for Transport of Goods under GST

Table of Contents:

1. 1. Background of E-way Bill provisions
   2. Position in respect of applicability of e-way bill provisions for movement of goods within the State
   3. Relaxations given by some State Governments in respect of e-way bills
   4. Common portal to upload details of E-way Bills
   5. Register or enroll on the portal before you start using the EWB portal
   6. Amendments made in registration on GSTIN Common portal
   7. New tool for bulk generation of e-way bills w.e.f. 1-10-2018
   8. Generation of e-way Bill
   9. Who is required to generate Part A of GST EWB-01?

Relaxation given by State Governments

For complete & updated insight of all provisions relating to GST E-Way Bill, in a simplified manner, with Case Laws refer to [9th Edition] of Taxmann's GST E-Way Bill

1. Background of E-way Bill provisions

On the introduction of GST w.e.f. 1-7-2017, many States have removed the physical barriers at the State border for transport of goods by road. This has speeded up the movement of goods to some extent.

In absence of physical restrictions on the movement of goods, some control is essential to ensure that goods are not clandestinely removed and sold. Hence, a system of E-way Bill has been introduced.

Provisions relating to E-way Bill have been made by amending rules 138, 138A, 138B, 138C, 138D and 138E in CGST Rules, 2017.

FAQ issued by CBI&C – CBI&C (Central Board of Indirect Taxes and Customs) has issued updated FAQs on GST on 15-12-2018. This contains FAQs on e-way Bill in para 13.3 These answer most of the questions normally encountered by suppliers, recipients and transporters.

FAQs issued on E-way Bill Portal – FAQs on e-way Bill have also been given on e-way Bill Portal. These give answers to many issues that arise during the uploading of e-way Bill.

User Manual – The e-way bill portal also contains User Manual for taxpayers giving detailed instructions for procedures to be followed.

Procedure for road checks – CBI&C has issued detailed circular No. 41/15/2018-GST dated 13-4-2018 (amended on 21-6-2018), elaborating procedure for interception of conveyances for inspection of goods in movement, detention, release and confiscation of contravening goods and conveyances. The provisions are discussed later in this chapter.

E-way Bill cannot be generated if returns were not filed by supplier or registration of supplier was suspended – As per rule 138E of CGST Rules (amended on 18-5-2021), notwithstanding anything contained in rule 138(1), no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of form GST EWB-01 in respect of any outward movement of goods of a registered person, who- (a) has not filed statement in form GST CMP-08 (composition scheme) for two consecutive quarters; or (b) has not furnished the GSTR-3B returns for a consecutive period of two tax periods (other than composition dealer); (c) has not furnished the statement of outward supplies for any two months or quarters (in GSTR-1) (other than composition dealer); or (d) whose registration has been suspended under the provisions of rule 21A(1), 21A(2) or 21(2A) of CGST Rules. [The words in italics inserted w.e.f. 18-5-2021. Earlier, the words were as follows – ‘in respect of a registered person, whether as a supplier or a recipient’]

Thus, after 18-5-2021, E-way Bill cannot be generated if two returns were not filed by supplier or his registration was suspended. E-way Bill can be generated even if GST Registration of recipient of goods or of transporter was suspended or cancelled.

Jurisdictional Commissioner may, on receipt of an application from a registered person in form GST EWB-05, on sufficient cause being shown and for reasons to be recorded in writing, by order, in form GST EWB-06 allow furnishing of the said information in PART A of form GST EWB-01, subject to such conditions and restrictions as may be specified by him.

No order rejecting the request of such person to furnish the information in Part A of form GST EWB-01 shall be passed without affording the said person a reasonable opportunity of being heard.

The permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

The said restriction was not applicable during the period from the 20th day of March, 2020 till the 15th day of October, 2020 (Covid-19 period), even if returns were not filed.

Online application for un-blocking of E-way Bill generation facility – As per instructions on website dated 28-11-2020, for unblocking of this facility, taxpayer need to apply to jurisdictional Tax Official in form GST EWB 05. To file an online application for unblocking EWB generation facility on GST Portal, a taxpayer need to login to the portal and navigate to Services> User services> My Applications. Select application type as “Application for unblocking of E-way bill” and click ‘New Application’. He will submit application in Form EWB-05, with upload of up to 4 documents.

The application so filed is populated to dashboard of jurisdictional tax official. The tax official can issue a Notice for personal hearing to the taxpayer. Then the taxpayer can file their reply to the notice online, along with supporting documents. At conclusion of the proceedings, the Tax Officer can issue an order (in Form EWB-06) approving the taxpayer application for unblocking the EWB generation facility, after which their EWB generation facility will be restored for the duration specified in the order.

If the Tax Officer rejects the taxpayer’s application vide order in Form EWB-06, the EWB generation facility will remain blocked and the taxpayer shall be required to file their pending returns (in Form GSTR-3B/GSTR-1/Statement in FORM CMP-08), for restoration of the EWB generation facility.

Very heavy penalty if goods are found to be without e-way Bill – If during transit cheques, goods are found to be without e-way Bill, goods are seized. Tax plus penalty equal to tax is payable. Goods can be confiscated if tax and penalty is not paid. Under section 67(2) of CGST Act, goods can be released on execution of bond with security.

In State of Uttar Pradesh v. Kay Pan Fragrance (P.) Ltd. [2019] 112 taxmann.com 81 (SC), it has been held that release of seized goods should be only as per provisions of section 67 of CGST Act and relevant rule. High Court should not give any relaxation in these requirements.

In Godrej Consumer Products Ltd. v. ACST (2020) 81 GST 608 = 114 taxmann.com 453 (Appellate Authority – GST – HP), the distance was erroneously types as 20 Km instead of 2000 Km, due to which validity was calculated as one day instead of 20 days. It was held that this is typographical mistake and penalty cannot be imposed – relying on Sabitha Riyaz v. UOI (2018) 100 taxmann.com 23 (Ker HC).

In Integrated Constructive Solutions v. ACST [2020] 82 GST 772 = 121 taxmann.com 104 (AA-GST-HP), penalty of Rs 16.28 crores was imposed when truck number could not be changed due to poor connectivity. The truck number was corrected within two hours. It was (indeed rightly) held that it is only a procedural lapse. A minor penalty of Rs 10,000 was imposed.

E-way Bill System integrated with Vaahan System of Transport Department – E-Way Bill system is now integrated with Vaahan system of Transport Department. Vehicle (RC) number entered in e-way Bill will be verified with Vaahan data for its existence/correctness. If the vehicle number does not exist, then system will alert the user to check and correct, if required. If the vehicle (RC) number is correct as per the tax payer, then he can continue with generation of E-Way Bill. However, he needs to get the vehicle number updated in the vaahan database so that in future E-way Bill generation will not be affected.

Temporary Vehicle number – If the Vehicle number is with temporary registration, the details are not verified and enter the temporary number starting with TR.

Checking vehicle number in Vaahan System – Vaahan System provides a nationwide search over the digitized data of Registered Vehicles. You can always check your vehicle number in Vaahan System below; https://vahan.nic.in/nrservices/faces/user/searchstatus.xhtml.

E-way Bill system integrated with Fastag and Vahan – E-way Bill System has been integrated with Vahan and Fastag. ‘Vahan’ provides for validation of vehicle details, while ‘Fastag’ provides data from automated toll plazas on movement of vehicles. This provides for near real time tracking of vehicles and e-way bills. This ensures objective checking of vehicles by GST Officers. Movement of vehicles can be checked on the map by using mobile app. Data can be analysed for fraud detection. [Improvement made in May 2021].

Combined movement of goods by road and ship – Mode of transport Ship is now updated as Ship/Road cum Ship so that the user can enter Vehicle number in case the goods are moved by Road initially, and for movement by Ship, the Bill of lading Number and date may be entered. This will help in availing the ODC benefits for movement using Ship and facilitate updating of vehicle details as and when moved on Road – Improvement w.e.f. 1-6-2021.

HSN Code when material sent for job work – In case of job work, e-Way Bill cannot be generated with only SAC code (99) for Services. Minimum one HSN code belonging to Goods is mandatory – Instruction dated 17-3-2021.

2. Position in respect of applicability of e-way bill provisions for movement of goods within the State

The provisions of e-way bill have been made effective from 1-4-2018 all over India for inter-State movement of goods.

In case of movement of goods within the State, the provisions were implemented in stages. However, by 16-6-2018, inter-State movement of goods in all States have become mandatory.

State Governments have powers to waive requirement of e-way bill for movement of goods within the State for specified area as per rule 138(14)(d) of CGST Rules and SGST Rules.

Under these powers, some State Governments have issued notifications. All the State Governments and Union Territories have issued notifications making the provisions applicable for movement of goods with the State.

In some States, some relaxations have been given.

(A) State where e-way bill is mandatory for intra-State movement of goods

From 1-4-2018 – Karnataka.

From 15-4-2018 – Andhra Pradesh, Gujarat, Kerala, Telangana, Uttar Pradesh.

In case of Gujarat, e-way bill is not required for intra-city movement of goods, irrespective of value. In case of intra-State movement of goods, e-way bill is required only for 19 goods, specified in Notification No. GSL/GST/RULE-138(14)/B.12 dated 11-4-2018. This list includes items like edible oils, oil seeds, iron and steel, ferrous and non-ferrous metals, ceramic tiles, brass parts, tobacco products, yarns, plywood, coal, timber, cement, marble, Kota stones, Naptha, LDO and tea.

Now, w.e.f. 19-9-2018, e-way bill is required for all inter-State movement of goods. However, e-way bill is not required for inter-State movement of flank, yarn, fabric and garments for job work.

In case of Kerala, following are exemptions, irrespective of limit of value – (a) sale of goods using sales van (b) Rubber latex, rubber sheets and rubber scrap, spices (c) Movement of goods to unregistered persons within 25 Km – SGST Kerala Notification No. 3/2018-State Tax, dated 14-5-2018.

From 20-4-2018 – Bihar, Jharkhand, Haryana, Himachal Pradesh, Tripura and Uttarakhand.

In case of Himachal Pradesh, e-way bill for intra-State movement of goods was required only for 17 specified items w.e.f. 5-5-2018, specified in the HP Notification dated 1-5-2018, Now, w.e.f. 1-6-2018, e-way bill is required for all goods.

In case of Bihar, e-way bill is required only if value exceeds Rs one lakh – Notification No. SO 180 dated 19-4-2018 amended on 14-1-2019 (earlier it was Rs two lakhs).

From 25-4-2018 – Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, Puducherry.

In case of Madhya Pradesh, the provisions of e-way bill will apply only to 11 items specified in MP Notification dated 24-4-2018.

From 30-4-2018 – Nagaland

From 16-5-2018 – Assam

From 20-5-2018 – Rajasthan

In case of Rajasthan, e-way bill is not required for movement of goods for job work – Notification No. F17(131) ACCT/GST/2017/3743 dated 6-8-2018.

Movement of goods within Rajasthan State if value does not exceed Rs one lakh, except tobacco and its products like pan masala, cigarettes, khaini, bidi w.e.f. 1-4-2021.

From 25-5-2018 – Maharashtra, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, Union Territories of Andaman & Nicobar Islands and Lakshadweep islands.

In case of Maharashtra, e-way bill for intra-State movement of goods is not required if value is less than Rs. one lakh. Further, for movement of Hank, Yarn, Fabric and Garments for job work, e-way bill is not required irrespective of value – Notification No. 15E/2018-State Tax, dated 29-6-2018.

From 1-6-2018 – Goa, Mizoram, Chhattisgarh, Jammu and Kashmir, Odisha, Himachal Pradesh (for all goods) and Punjab.

Chhattisgarh – E-way bill not required for specified goods – Notification No. F-10-31/2018/CT/V(46) Chhattisgarh dated 19-6-2018.

In Goa, the e-way bill is required only to 22 articles as specified in Notification No. CCT/26-2/2018-19/36 dated 28-5-2018.

In Himachal Pradesh – E-way bill not required for 17 specified items – Notification No. 12-4/78-EXN-TAX-17408 dated 31-5-2018.

From 2-6-2018 – Tamil Nadu

In case of Tamil Nadu, e-way bill is required if value exceeds Rs. one lakh. However, in case of some 100 specified items, e-way bill is not required irrespective of value.

From 3-6-2018 – West Bengal

In case of West Bengal, e-way bill is required if consignment value exceeds Rs. one lakh – Notification No. 13/2018-CT/GST dated 6-6-2018. E-way bill is not required if goods are sent for job work or returned to Principal after job work – Notification No. 14/2018-CT/GST dated 12-7-2018.

From 16-6-2018 – Delhi

In case of Delhi, e-way bill is not required if value does not exceed Rs. one lakh – Notification No. 3/2018 dated 15-6-2018.

3. Relaxations given by some State Governments in respect of e-way bills

Following State Governments have given exemption from requirement of e-way bill for movement of goods within the State.

The relaxations are as follows :

4. Common portal to upload details of E-way Bills

Central Government has notified www.ewaybillgst.gov.in as the common portal for generation of e-way bill [EWB System for short]. It is managed by National Informatics Centre, as common portal for furnishing e-way bill – Notification No. 9/2018-CT dated 23-1-2018.

The portal has following four user manuals –

1. 1. User Manual – e-way Bill System – See Appendix 7.
   2. User Manual – Offline Tool (for bulk uploading of e-way bills).
   3. User Manual for SMS Operations
   4. User Manual for API Interface [site to Site Integration]

The EWB system (website) also has FAQs. These may be referred to as these give many useful hints. See Appendix 6.

Various modes of generation of e-way bill – The e-way bill can be generated through various modes like Web (online), Android App, SMS, using bulk upload tool and API bases site to site integration – CBI&C press release dated 1-4-2018.

5. Register or enroll on the portal before you start using the EWB portal

Consignor, Consignee or transporter, as the case may be, is required to get registered on the EWB system even if he has GSTIN.

After filling the GSTIN, he will get OTP and then he can generate username and password. It is advisable to have same username and password as used for GSTIN.

A transporter not having GSTIN is required to enroll on the EWB system. Income Tax PAN is mandatory and it should match with details the transporter is uploading. Any one of director, partner, manager or employee must have Aadhaar. It should be linked with mobile. Without that the transporter is ‘Niradhar’.

After enrolment, the transporter will get a 15 digit number based on State Code, PAN and check digit. The transporter will get username and password, which should be properly recorded.

If supplier or recipient himself is transporting the goods – If supplier or recipient himself wants to transport the goods, he should enter his GSTIN as transporter. Separate registration on portal as transporter is not required. After that, he can fill both part A and part B of e-way bill and generate e-way bill. If he enters the portal as supplier or recipient, he can enter only part A of the e-way bill. Note that e-way bill is complete only when both parts A and part B are completed and e-way bill is generated by system.

The validity period of e-way bill starts only after entire e-way bill is generated (both parts A and B are filled in and system generates e-way bill).

Transporter or supplier can create multiple sub-users – Transporters or suppliers can create multiple sub-users and allocate roles to them. The large transporters can declare their various offices or business places as sub-users. Three sub-users can be generated for each registered place of business – CBI&C press release dated 1-4-2018.

Unique Common Enrolment Number for transporters registered in more than one States/Union Territories – Transporters registered in more than one States/Union Territories can obtain ‘Unique Common Enrolment Number’ (UCEN) for purpose of generation of e-way bills. Application for such (UCEN) should be made in form GST ENR-02. This will be for one GSTIN. Thus, this UCEN should be used only with the GSTIN with which it is linked – rule 58(1A) of CGST Rules inserted w.e.f. 19-6-2018. See Appendix 13.1.

Entering additional places of business by transporter – If the transporter is having additional places of business in addition to the registered place of business, he can use the “Update Additional Place” sub-option provided under “Update” option in the main menu of e-way bill system to add/amend the additional places of business – New FAQs dated 29-9-2018. See Appendix 6 for text of New FAQs.

6. Amendments made in registration on GSTIN Common portal

Amendments of GST registration details in GST Common Portal are not being shown automatically  on the e-way bill system. In such case the taxpayer has to login and use the “My GSTIN from CP” sub-option provided under “Update” option in the main menu.

Some times, GSTIN in e-Way Bill portal is cancelled but is active in GSTN common portal. In such cases, the taxpayer  has to first go to the Taxpayer search option in the Home page of e-Way Bill portal. He has to then enter his GSTIN and system will show his corresponding GSTIN details existing in GST Common Portal. If the status of GSTIN is active, taxpayer can login and generate the e-Way Bill – FAQs dated 29-9-2018.

7. New tool for bulk generation of e-way bills w.e.f. 1-10-2018

New e-way bill generating tool has been uploaded on e-way bill portal on 1-10-2018. Using this tool, one can prepare JSON file to generate large number of e-way bills in one go.

First method is to generate excel sheet from automated system. Another method is to enter all requests in the format one by one and then keep them ready for upload.

8. Generation of e-way Bill

The e-way bill is of three parts.

Part A is description of goods, which is normally expected to be filled by consignor, but can be filled by others also.

Part B is description of mode of transport, which is normally expected to be filled in by transporter but in many cases, by others also.

The third part is unique e-way bill number and date, which is generated on common portal once both parts get filled in.

Generation of e-way bill by unregistered person – E-way bill can be generated by unregistered person by using ‘citizen’ option on e-way bill portal – FAQ on GST Chapter 13.3 Q No. 118 issued by CBI&C on  15-12-2018.

Only one e-way bill for one invoice/document – Only one e-way bill can be generated for one invoice or document – amendment made in April, 2019.

9. Who is required to generate Part A of GST EWB-01?

The consignor is required to furnish specified details before movement of goods commences, if value exceeds Rs. 50,000 electronically in Part A of form GST EWB-01. If the consignor is unregistered, the consignee is required to furnish the information.

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—(i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered person, shall, before commencement of such movement, furnish information relating to