"In the pre-GST era, waybill compliance had been mandatory for suppliers. Supply of goods couldn't take place without obtaining the waybills from VAT authorities," says Neeraj Bhagat, Chartered Accountant of Neeraj Bhagat & Co. Waybill is nothing but a physical document that allows movement of goods. The compliance around waybills had caused restricted movement of goods across states and this is one anomaly which hopefully GST will rectify.
The CBEC has released electronic way bill or e-way bill rules which will provide the framework for the transport of goods under the Goods and Services Tax (GST) regime.
Certain items of mass consumptions including vegetables, fruits, food grains, meat, bread, curd, books and jewellery, contraceptives, judicial and non-judicial stamp paper, newspapers, khadi, raw silk, Indian flag, human hair, kajal, earthen pots, cheques, municipal waste, puja samagri, LPG, kerosene, heating aids and currency will be outside the ambit of the e-way bill. The date from which the e-way bill would come into effect would be notified separately.
E-way bill will also not be needed in case of goods transported by a non-motorised conveyance and where the goods are being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by customs. In case of multiple consignments, transporter needs to generate a consolidated e-way bill. If goods are transferred from one vehicle to another then transporter would be required to generate a new e-way.
What is an 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 will also be allowed to be generated or cancelled through SMS.
When an e-way bill is generated, 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 will be generated when there is movement of goods -
In relation to a 'supply'
For reasons other than a 'supply' (say, a return)
Due to inward 'supply' from an unregistered person
Who can generate e-way bill?
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. Registered person or the transporter may choose to generate and carry e-way bill even if value of goods is less than Rs. 50,000.
Unregistered person or his transporter may also choose to generate e-way bill. This means e-way bill can be generated by both registered and unregistered persons. However, 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.
An e-way bill can be generated by:
Who When Part Form
Every Registered Before movement of
person under GST goods Fill Part A Form GST EWB-01
Registered person is
consignor or consignee
(mode of transport may
be owned or hired) OR Before movement of
is recipient of goods goods Fill Part B Form GST EWB-01
Registered person is
consignor or consignee
and goods are handed
over to transporter of Before movement of Fill Part A & Part B Form GST EWB-01
Fill form GST
Transporter of goods EWB-01 on basis of He may also fill
[if consignor/ invoice/bill of form EWB-02
consignee does not Before movement of supply/delivery [consolidated
generate] goods challan e-way bill]
Unregistered person Compliance to be
under GST and done by Recipient
recipient is as if he is the
The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1.
Provided that when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the email is available.
Where an e-way bill has been generated under this rule 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, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill.
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.
Validity of an 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-
Distance Valid from Valid for
Date & time at which e-way
Up to 100 km bill is generated 1 day
For every 100 km or part Date & time at which e-way
thereof thereafter bill is generated 1 additional day
Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified.
We are a team of 40 professionals comprising of Chartered Accountants, MBA's and other finance professionals rendering services in the field of Accounting, Statutory Tax Compliances, FEMA, Transfer Pricing, Statutory Audits and Tax due diligence since last 19 years. Neeraj Bhagat & Co. has offices in New Delhi, Gurgaon and Mumbai. We are part of INAA Accounting Association which is one of the World's Top 20 in accounting associations.