Mundle Venkatraman & Associates

E-WAY Bill

By: Diptika Jadhav - 1st February, 2021

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What is an E-way bill?

E-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding Rs 50,000 as mandated by the Government in terms of Rule 138, Section 68 of the Goods and Services Tax Act. E-way bill is generated from the E-way bill system by the registered taxpayer (having a valid GSTIN) or transporters (registered or unregistered). An E-way bill needs to be generated before the commencement of movement of goods or consignment.

When is the E-Way Bill applicable?

E-way bill is applicable for any consignment value exceeding INR 50,000. Even in case of inward supply of goods from unregistered person, E-Way Bill is applicable.

Validity of E-way Bill

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Type of conveyance	Distance	Validity of EWB
Other than Over dimensional cargo	Less Than 100 Kms	1 Day
Other than Over dimensional cargo	For every additional 100 Kms or part thereof	additional 1 Day
For Over dimensional cargo	Less Than 20 Kms	1 Day
For Over dimensional cargo	For every additional 20 Kms or part thereof	additional 1 Day

Validity of E-way bill can also be extended. The generator of such E-way bill can either four hours before expiry or within four hours after its expiry extend E-way bill validity.

Who should Generate an E-way Bill?

Registered Person – E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.

Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Documents or Details required to generate e-Way Bill:

Invoice/ Bill of Supply/ Challan related to the consignment of goods
- Transport by road – Transporter ID or Vehicle number
- Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

How to generate the E-Way Bill?

Form GST EWB-01 is an E-Way Bill form. It contains Part A, where the details of the goods are furnished, and Part B contains vehicle number. This form is available on https://docs.ewaybillgst.gov.in after successful login by the e-way bill generator.

Can E-Way Bill be generated for consignments of value less than INR 50,000?

Yes, either a registered person or a transporter can generate an E-Way Bill although it may not be mandatory.

What happens if multiple consignments are transported in one vehicle?

The transporter should generate a consolidated E-Way Bill in the Form GST EWB 02 and separately indicate the serial number of E-Way Bill for each of the consignment.

What happens if there is a mistake or wrong entry in the e-way bill?

If there is any incorrect information or a mistake in the e-way bill, then it cannot be corrected or edited. In case of any errors in the e-way bill, the only option is to cancel the e-way bill and generate a new e-way bill with correct details.

Can an E-way bill be modified or cancelled?

The E-way bill once generated cannot be edited or modified. Only Part-B (which consists of vehicle details) can be updated. However, if E-way bill is generated with wrong information, it can be cancelled and generated afresh. The cancellation is required to be done within 24 hours from the time of generation.

Can multiple invoices be clubbed to create a single E-way bill?

No, in case multiple invoices are issued by the supplier to the recipient, multiple E-way bills to be generated. Thus, for each invoice, a single E-way bill has to be generated, irrespective of the fact whether same or different consignors or consignees are involved. However, after generating all these E-way bills, one Consolidated E-way bill can be prepared for transportation purpose, if goods are going in one vehicle.

How is the criteria of "Value of Consignment of Goods" applied?

Value of consignment of Goods" is interpreted as follows:

Invoice Value* exceeds Rs. 50,000 OR
If a vehicle carries goods against multiple Invoices, then where the aggregate Invoice value* exceed Rs. 50,000

Thus, if either of above points is satisfied, the user should generate e-Way Bill.

*Invoice Value means transaction value as per Invoice inclusive of all the taxes excluding the Value of exempt goods that are being carried along the taxable goods and billed together.

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