Guide to Understanding E-Way Bill Generation and its Validity

E-Way Bill Generation refers to the process of creating an electronic waybill for the movement of goods. In many regions, particularly in India, an E-Way Bill is a mandatory document for transporting goods worth a certain value over a specific distance. The bill is generated online, typically through a government portal, and serves as proof that the goods being transported comply with the applicable tax regulations.

The process involves:
– Registration: The transporter, supplier, or recipient must be registered on the E-Way Bill portal.
– Filling Details: Information such as the nature of the goods, their value, the consignor and consignee details, and the transport details (vehicle number, transport mode) are entered.
– Generating the Bill: Once the details are submitted and validated, the E-Way Bill is generated with a unique E-Way Bill Number (EBN).
– Transportation: The generated E-Way Bill must accompany the goods during their transit and can be checked by authorities for verification.

This system helps in ensuring transparency and efficiency in the transport and taxation of goods.

Table of Contents

1. Generation of e-way bill after Part A and Part B are filled in
2. Validity of e-way bill generated
3. Procedure by transporter after generation of e-way bill
4. Intimation of acceptance of details by recipient/supplier

Check out Taxmann's GST E-Way Bill which comprehensively analyses the GST E-Way Bill system, enriched with case laws and practical examples. It covers everything from the generation of E-Way Bills to road checks and tax invoices, making it a must-have resource for tax professionals who want to understand the complexities of GST in goods transportation.

1. Generation of e-way bill after Part A and Part B are filled in

The portal generates e-way bill after both Part A and Part B are filled in.

Following details will be auto filled in by portal after Part A and Part B.

E-way Bill No. –

E-way Bill Date –

Generator – supplier, recipient or transporter. Seems these details are to be filled in when Part A is filled in.

Valid form –

Valid until –

Validity upto midnight – The e-way bill will be valid upto midnight on last day – Explanation 1 to rule 138(10) of CGST Rules.

1.1 Validity period of e-way bill will be counted by Portal on basis of PIN Code from April 2019

Part A of e-way bill requires PIN Code of place of dispatch and place of delivery. On this basis, the Portal will auto-calculate distance between place of dispatch and place of delivery and will calculate the validity period. The e-way bill system will calculate and display motorable distance. This distance can be changed by user upto 10% e.g. if system calculates distance as 655 KM, use can increase it upto 720 Km (655 + 65).

If PIN Code of source and destination is same, user can enter distance upto 100 Km – amendment made in April 2019.

User can know distance between source and destination by going to ewaybillgst.gov.in, go to ‘Search’ and click on ‘PIN to PIN distance’.

2. Validity of e-way bill generated

An e-way bill or a consolidated e-way bill generated shall be valid as follows, for normal cargo –

1. Upto 200 Km – one day
2. One day for every 200 Km or part after first 200 Km [rule 138(10) of CGST Rules amended on 1-1-2021. Earlier, the validity period was 100 Km per day]

In case of over dimensioned cargo, or multimodal shipment in which at least one leg involves transhipment by ship, an e-way bill or a consolidated e-way bill generated shall be valid as follows –

1. Upto 20 Km – one day
2. One day for every 20 Km or part after first 20 Km [rule 138(10) of CGST Rules amended w.e.f. 28-6-2019].

Commissioner can extend validity – The Commissioner may, by notification, extend the validity period for certain categories of goods as may be specified therein – first proviso to rule 138(10) of CGST Rules. It seems some general relaxations may be given for some specified goods.

Meaning of ‘relevant date’ for purposes of rule 138(1) – The “relevant date” shall mean the date on which it has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill – Explanation 1 to rule 138(10) of CGST Rules.

Meaning of ‘Over Dimensional Cargo’ – The expression “Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 – Explanation 2 to rule 138(10) of CGST Rules.

Extension of validity period of e-way bill if validity expired – Under circumstances of an exceptional nature, including transhipment, if the goods cannot be transported within the validity period, the transporter may extend the validity period after updating the details in Part B of form GST EWB-01, if required [second proviso to rule 138(10) of CGST Rules].

The validity may be extended within eight hours from the time of its expiry [third proviso to rule 138(10) of CGST Rules inserted w.e.f. 28-6-2019] [really the validity is upto midnight. Hence, transporter will have to keep his office open in night for this purpose. Otherwise e-way bill will expire by 8 AM, even before office opens !].

Fresh generation of e-way bill if validity expired – Under circumstances of an exceptional nature, if the goods cannot be transported within the validity period, the transporter may generate another e-way bill after updating the details in Part B of form GST EWB-0, if required [second proviso to rule 138(10) of CGST Rules].

It is not clear who is to determine that the circumstances are of an exceptional nature.

General Extension in case of e-way bills where validity expired during lock down due to Corona virus – Where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period shall be deemed to have been extended till the 30th day of April, 2020. – – Where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 on or before the 24th day of March, 2020 and whose validity has expired on or after the 20th March, 2020 the validity of such e-way shall be deemed to have been extended till the 30th day of June, 2020 – Notification No. 35/2020-CT dated 3-4-2020 amended on 9-6-2020.

2.1 Verification of authenticity of E-way Bill

Authenticity can be verified by entering EWB No. EWB date, Generator ID and Doc No. in the search option of EWB portal. This seems to be difficult.

Simple solution seems to be through SMS by sending EWBVER <EWB_NO>to the mobile number 77382 99899 (For example EWBVER 120100231897).

3. Procedure by transporter after generation of e-way bill

The procedure to be followed by transporter is as follows –

E-way bill to accompany goods – E-way bill in electronic or physical form must accompany the goods.

No need to carry physical copy of invoice if e-invoice with QR code is produced for verification by officer – There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules and production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice – CBIC circular No. 160/16/2021-GST dated 20-9-2021.

Transhipment of goods to another conveyance – Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in form GST EWB-01 [rule 138(5) of CGST Rules].

Multiple consignments in one conveyance – After e-way bill has been generated in accordance with the provisions of rule 138(1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in form GST EWB-02 may be generated by him on the common portal prior to the movement of goods [rule 138(6) of CGST Rules].

3.1 Cancellation of e-way bill

If an e-way bill has been generated under the rule 138 of CGST Rules, but goods are either not transported or are not transported as per the details furnished, it may be cancelled electronically on the common portal, within 24 hours of generation of the e-way bill – rule 138(9) of CGST Rules.

Thus, if there is accident to truck, the driver should first rush to cancel e-way bill before sending injured persons to hospital and even before informing police and owner of vehicle about accident!

It cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B [proviso to rule 138(9) of CGST Rules].

It is not clear what would be the consequences if the transport is unable to cancel the e-way bill.

3.2 Radio Frequency Identification Device (RFID) by specified transporters

The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device (RFID) prior to the movement of goods [rule 138A(4) of CGST Rules].

3.3 Documents and devices to be carried by a person-in-charge of a conveyance

The person in charge of a conveyance shall carry—

• the invoice or bill of supply or delivery challan, as the case may be; and
• a copy of the e-way bill or the number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner [rule 138A(1) of CGST Rules].

Rule 138A(1)(b) shall not apply for transport of goods by rail or air or vessel [proviso to rule 138A(1) of CGST Rules]. Thus, for transport by rail, air or vessel, copy of e-way bill is not required to be carried.

3.4 Tax Invoice or bill of supply to accompany transport of goods when e-way bill not required

The person-in-charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance with the provisions of rule 46, 46A or 49 of CGST Rules in a case where such person is not required to carry an e-way bill under CGST rules – rule 55A of CGST Rules inserted w.e.f. 23-1-2018.

Where tax invoice or Bill of Supply is not required, Delivery Challan should accompany the goods.

Even when e-way bill is required, tax invoice or bill of supply or delivery challan should accompany the goods.

3.5 Invoice Reference Number (IRN) can be obtained by supplier electronically

In case, invoice is issued in the manner prescribed under rule 48(4) [e-invoice], the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice – Rule 138A(2) of CGST rules as substituted w.e.f. 30-9-2020.

Earlier, the rule was reading as follows – A registered person (supplier) may obtain an Invoice Reference Number (IRN) from the common portal by uploading on the portal, a tax invoice issued by him in form GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading [rule 138A(2) of CGST Rules as existing upto 30-9-2020].

If such IRN is obtained, it is not necessary for transporter to carry physical copy of tax invoice, unless specifically ordered under rule 138A(5) of CGST Rules.

No need to carry physical copy of invoice if e-invoice with QR code is produced for verification by officer – There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules and production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice – CBIC circular No. 160/16/2021-GST dated 20-9-2021.

Commissioner can require that physical copy of tax invoice of delivery challan should be carried – Even if rule 138A(1)(b) of CGST Rules enable dispensing with carrying physical copy of tax invoice, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill-

• tax invoice or bill of supply or bill of entry; or
• a delivery challan, where the goods are transported for reasons other than by way of supply [rule 138A(5) of CGST Rules]

Auto population of information in part A if IRN obtained – If the registered person uploads the invoice under rule 138A(2), the information in Part A of form GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in form GST INV-1 [rule 138A(3) of CGST Rules].

4. Intimation of acceptance of details by recipient/supplier

The details of part A of e-way bill generated under rule 138(1) shall be made available on common portal, to the following –

1. to recipient, if he is registered, if the information was uploaded by supplier,
2. to supplier, if he is registered, if the information was uploaded by recipient.

The supplier/recipient shall communicate his acceptance or rejection of the consignment covered by the e-way bill [rule 138(11) of CGST Rules].

Where the recipient referred to in rule 138(11) does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, or the time of delivery of goods, whichever is earlier, it shall be deemed that he has accepted the said details [rule 138(12) of CGST Rules].

This seems a risky proposal. In any case, this is not conclusive evidence about receipt of goods. The supplier/recipient can any time prove that the consignment does not belong to him.

Note that the communication is not of receipt of goods by recipient (consignee) or supply of goods by supplier but only acceptance of details as contained in the e-way bill. What it really means that his acceptance that the goods are meant for him only and his name, as recipient, is not false or incorrect.