E-Way Bill - Meaning, Generation, Validity and Cancellation [GST Law & Practice B.Com Notes] (2024)

E-Way Bill

E-way bill is an electronic way bill for movement of goods whichcan be generated on the GSTN (common portal). A movement of goods of more thanRs. 50,000 in value cannot be made by a registered person without an E-waybill. E-way bill is generated by a unique E-way bill number (EBN) is allocatedand is available to supplier, recipient and the transporter.

When should an E-way bill be generated?

E-way bill must be generated when there is a movement of goods ofmore than Rs. 50,000 in value to or from a Registered Person.

1. E-way bill is an electronic way bill formovement of goods which can be generated on the GSTN (common portal). A movementof goods of more than Rs. 50,000 in value cannot be made by a registered personwithout an E-way bill. E-way bill is generated by a unique E-way bill number(EBN) is allocated and is available to supplier, recipient and the transporter.However, for certain specified Goods, the e-Way Bill needs to be generatedmandatorily even if the Value of the consignment of Goods is less than Rs.50,000;

2. Every Registered person, being theconsignor or consignee or the transporter, as the case may be before movementof goods, should fill the Form GST INS-I.Unregisteredperson or his transporter may also choose to generate E-waybill, which means E-way bill can be generated by both registered andunregistered persons. Where a supply is made by an unregistered person to aregistered person, the receiver will have to do all the compliances as if he’sthe supplier.

A registered person may submit a tax invoicein Form GST INV-1 on the common portal. If a registered person has uploaded theinvoice, information in Part A of Form GST INS-1 is auto populated from GSTINV-1.

In other words, the e-Way Bill is generatedwhen there is a movement of goods:

(a) Inrelation to the supply.

(b) Forreasons other than a supply (say a return).

(c) Dueto inward supply from an unregistered person.

For this purpose, a supply may beeither of the following:

Ø Asupply made for a consideration (payment) in the course of business.

Ø Asupply made for a consideration (payment) which may not be in the course ofbusiness.

Ø Asupply without consideration (without payment).

In simpler terms, the term ‘supply’usually means:

1.Sale – sale of goods and payment made.

2.Transfer – branch transfers forinstance.

3.Barter/Exchange – where the payment isby goods instead of in money.

Documents or Details required togenerate e-Way Bill:

a) Invoice/Billof Supply/Challan related to the consignment of goods.

b) Transportby road – Transporter ID or Vehicle number.

c) Transportby rail, air, or ship – Transporter ID, Transport document number, and date onthe document.

Cases when e-Way Bill is Not Required:

In the following cases it is not necessary to generate e-Way Bill:

1.The mode of transport is non-motorvehicle.

2.Goods transported from Customs port,airport, air cargo complex or land customs station to Inland Container Depot(ICD) or Container Freight Station (CFS) for clearance by Customs.

3.Goods transported under Customssupervision or under customs seal.

4.Goods transported under Customs Bondfrom ICD to Customers port or from one custom station to another.

5.Transit cargo transported to or fromNepal or Bhutan.

6.Movement of goods caused by defenceformation under Ministry of defence as a consignor or consignee.

7.Empty Cargo containers are beingtransported.

8.Consignor transporting goods to orfrom between place of business and a weight bridge for weighment at a distanceof 20 kms, accompanied by a Delivery Challan.

9.Goods being transported by rail wherethe Consignor of goods is the Central Government, State Government or a localauthority.

10.Goodsspecified as exempt from E-Way bill requirements in the respective State/Unionterritory GST Rules.

11.Transportof certain specified goods – includes the list of exempt supply of goods.Annexure to Rule 138(14), goods treated as no supply as per Schedule III,Certain schedule to Central Tax Rate notifications. (PDF of List of Goods).

Validity of E-way bill

Validityof an E-way bill is based on the distance travelled by the goods taking intoaccount the date and time of its generation. An e-way bill or a consolidatede-way bill generated shall be valid for the period as mentioned below:

TheCommissioner may, on the recommendation of the Council, by notification, extendthe validity period of an e-Way bill for certain categories of goods as may bespecified therein.

Cancellation of e-Way Bill:

Wherean e-way bill has been generated, but goods are either not transported or arenot transported as per the details furnished in the e-way bill, the e-way billmay be cancelled electronically on the common portal within 24 hours ofgeneration of the e-way bill. However, E-way bill cannot be cancelled if it hasbeen verified in transit.