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

E-Way Bill

E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A movement of goods of more than Rs. 50,000 in value cannot be made by a registered person without 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.

When should an E-way bill be generated?

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.

1. E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A movement of goods of more than Rs. 50,000 in value cannot be made by a registered person without 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 generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000;

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

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

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

(a)  In relation to the supply.

(b) For reasons other than a supply (say a return).

(c)  Due to inward supply from an unregistered person.

For this purpose, a supply may be either of the following:

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

Ø A supply made for a consideration (payment) which may not be in the course of business.

Ø A supply without consideration (without payment).

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

1.    Sale – sale of goods and payment made.

2.    Transfer – branch transfers for instance.

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

Documents or Details required to generate e-Way Bill:

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

b)    Transport by road – Transporter ID or Vehicle number.

c)    Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the 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-motor vehicle.

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 Customs supervision or under customs seal.

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

5.    Transit cargo transported to or from Nepal or Bhutan.

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

7.    Empty Cargo containers are being transported.

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

9.    Goods being transported by rail where the Consignor of goods is the Central Government, State Government or a local authority.

10.Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.

11.Transport of 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

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

Sl. No.	Distance	Validity Period
1.	Upto 100 Km.	One day in cases other than Over Dimensional Cargo.
2.	For every 100 Km. or part thereof thereafter.	One day in cases other than Over Dimensional Cargo.
3.	Upto 20 Km.	One day in case of Over Dimensional Cargo.
4.	For every 20 Km. or part thereof thereafter.	One additional day in case of Over Dimensional Cargo.

The Commissioner may, on the recommendation of the Council, by notification, extend the validity period of an e-Way bill for certain categories of goods as may be specified therein.

Cancellation of e-Way Bill:

Where an e-way bill has been generated, 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 electronically on the common portal within 24 hours of generation of the e-way bill. However, E-way bill cannot be cancelled if it has been verified in transit.