Frequently Asked Questions On E-Way Bill

1) In Which cases, an e-Way bill is not required?

Below are the cases when the generation of e-Way Bill is not a requirement:

1. When the value of the consignment of goods moved is less than INR 50,000 (however, there are certain goods for which the e-way bill is mandatory even though the value of the goods is less than Rs. 50,000. Examples of such goods are when there is an inter-state movement of goods by the Principal to Job-worker and when the Inter-State Transport of Handicraft goods by a dealer is exempted from GST registration);

2. When the conveyance used is a non-motor vehicle;

3. When goods are transported from port/ airport/ air cargo complex/ land customs station to Inland Container Depot or Container Freight Station for customs clearance;

4. Transport of certain goods.

5. If within the same state, the goods are transported for a distance less than 10 km, from the business place of the transporter to the business place of the consignee;

6. If within the same state, the goods are transported for a distance less than 10 km, from the business place of the consignor to the business place of a transporter for further transportation

2) What is the validity of an e-Way bill?

The validity period of an e-way Bill starts from the time of creation of the e-Way Bill. For distance traveled less than 100km, the bill is valid for one day. For every 100km or after that, the bill is valid for one additional day.

Note: That the commissioner can provide an extension of the validity period for specific categories of goods.

3) Which documents are required to generate an e-Way Bill?

One requires the below documents to generate the e-Way Bill:

(i). The invoice/ Bill of Supply/ Delivery Challan of the goods consignment;

(ii). If roadways transport the goods, then the Transporter ID or Vehicle number;

(iii). If rail, air, or ship transport the goods, then one requires ID of the Transporter, Document Number of Transport, and Document Date.

4) What are the criteria for “Value of Consignment of Goods”?

The value of consignment of goods is as below:

(i). If the invoice value exceeds INR 50,000; or,

(ii). If the vehicle is carrying goods for multiple invoices whose combined invoice value exceeds INR 50,000.

If either of the above criteria is satisfied, then one needs to generate the e-Way Bill.

Note: Invoice Value means the total transaction value inclusive of taxes per invoice.

5) Is there any penalty if the transporter fails to generate an e-Way Bill?

If the supplier for some reason fails to create the e-Way Bill, then it is the responsibility of the transporter to obtain it. If the transporter fails to do same, then he/she may face the greater of a Rs. 10,000 fine or tax assumed to be avoided. He/she is further liable for the confiscation of goods and seizure of the vehicle.

6) What happens if multiple consignments are transported in one vehicle?

If multiple consignments are sent in the same conveyance, then the transporter needs to generate one consolidated e-Way Bill through the portal, which will have the serial numbers of each individually generated e-Way Bill per consignment. This situation is also known as ‘Transshipment’.

7) During Transit, what happens if goods are transferred from one vehicle to another vehicle?

When goods are transferred from one vehicle to another during transit, before the actual transfer, and before further movement takes place, the transporter will need to update the details of the vehicle in the e-Way Bill in the Form GST EWB 01, through the common portal.

Note: If goods are transported for a distance less than 10 km within the State or Union territory from the business place of the transporter finally to the business place of the consignee, then it is not mandatory to update the details of the vehicle in the e-Way Bill.

8) What happens if E-Way Bill is generated but goods are not transported?

In case the e-Way Bill is generated but the goods have not yet transported to the destination, then the bill needs to be canceled. It can either be canceled electronically via the GST website or through a GST Facilitation Centre within 24 hours of generation of the bill. If any officer has already verified the bill during transit, then it cannot be canceled.

9) What happens if recipient of goods does not communicate the acceptance or rejection within 72 hours?

The recipient of the goods needs to communicate the acceptance or rejection of the same within 72 hours of the details appearing on the website. If the recipient does not confirm his/ her acceptance or rejection, it is assumed that he/she has accepted the consignment, by default.

10) What if I want to cancel the e-way bill?

An e-Way Bill can be canceled via the GST website or via SMS within 24 hours of its generation. However, the bill cannot be canceled if an officer in transit has verified the same.

Final Thoughts

At ProfitBooks, we think that a GST invoice is good enough to go along with the goods during transportation. Government should either simplify the e-way bill generation process or just get rid of it completely. In any case, things are definitely going to get easier within few months.

Meanwhile, if you are a business owner, you should start creating your bills in GST compatible format using our GST billing software. You can try it free for 2 weeks, it takes just few minutes to signup.