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A Study about Eway bill rules and Recent Amendments to Eway bill

  By : , Delhi, India       20.3.2018         2 Comments          Mail Now

The first important thing to note in this regard is that, what gives the power to these rules. The rules for E way bill are covered by CGST Act, meaning the Central Government is empowered here to make rules in this regard or even amend the rules for the sake.

What does rules mean?
In a tax law, a rule is something which defines about the particular Act or any new entries which are added to a particular Act, or something which gives power to the Act or it is like instruction guide to understand the act which states the way the things are should be done.

Lets learn about the rules that govern the Eway bill and also understand the process from the E way bill rules that are prescribed in the Act governing Eway bill.

Which Act governs the Eway bill : CGST Act 2017

What are the rules we are going to follow when complying with Eway bill : Central Goods and Services Tax (Sixth Amendment) Rules, 2017.

When these rules come into force in order to mandatorily comply with it : These rules, they shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Rule which tell us when and who generates the eway bill and the possible scenarios where different persons generates the eway bill :

Principle Rule : It is the principle rule which defines the whole E way bill CGST Act 2017, which tells that

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—

in relation to a supply; or
for reasons other than supply; or
due to inward supply from an unregistered person,

shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.

Amendments : Value of consignment shall exclude the value of exempt supply for determining the limit of 50k.

How to detect the value of Consignment : Value of consignment = Value declared in an invoice, a bill of supply or a delivery Challan, as the case may be, issued in respect of the said consignment (+) central tax (CGST) , State (SGST) or Union territory tax (UTGST), integrated tax (IGST) and cess charged, if any (-) value of exempt supplies.

And Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal only after furnishing information in Part B of FORM GST EWB-01. Meaning for the movement of goods in own conveyance exceeding the limit of Rs. 50,000 here for the movement of the said goods, the supplier or recipient themselves act as transporter of the said goods and thereby had to comply with the provisions by filing the Part B of the Form which in case would have been filed by the transporter had the goods been moved by the transporter.

Amendments : Own conveyance or a hired one or a public conveyance (BUS ETC), by road, the said person shall. I think Bus as mode of conveyance has been included in the above said rule.

Finer Point Study :
Part A of Eway bill Form Contains following details : Type of Supply – Such as Outward, inward, for resale etc., ; Details of supplier – GSTIN, Principal place of business and details of recipient – GSTIN of recipient, recipients principal or additional place of business; Other details of invoice such as – Invoice Number, Date, Taxable value of goods, Tax Classifications, Products name and HSN Code

Part B of Ewaybill Form Contains following details : Transporters details – Transporters GSTIN/ Transporter ID, Vehicle Number, Approx. Distance for which the goods are proposed to be moved

Where the e-way bill is not generated neither by the supplier or the recipient and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter in such cases on the common portal on the basis of the information furnished by the registered person in form of Invoice or Delivery Challan and shall fill the details in Part A of FORM GST EWB-01 from the same.

Finer Point Study :
Even when the value of the consignment is less than fifty thousand rupees, it is left to the option registered person or, as the case may be, the transporter to generate and carry the Eway bill. Law is mandatory only when the consignment value crosses Rs. 50,000/-

where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified

Finer Point Study :
Even an unregistered dealer can cause movement of goods either in his own conveyance or hired one by having a separate login at common portal, where the unregistered person himself or the transporter at their option generate and carry the Eway bill. But in the cases, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

The information in Part A of FORM GST EWB-01 shall be furnished only by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel and not by the transporter of the vehicle.

Rule talks about EBN so what is this Unique E Way bill Number : Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal which will enable movement of goods under Eway bill mechanism under GST.

Updation of Vehicle number in transit or movement of goods in cases of repairs or due to other reasons : Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01 and the earlier filed Eway bill Form stays as it as but with updated Vehicle details in it. But where in the goods are transported for a distance of less than ten kilometer’s within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.

Amendments 1 : 10 km been replaced by, 50 km wherever applicable.

Amendments 2 : Unique number shall be valid for 15 days instead of 72 hours for updation of part B

Eway bill rules with regards to multiple consignments transported in one consignment : For multiple consignments intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

Finer Point Study : If goods are moved by transporter then, transporter prepares the consolidated eway bill, if moved by the supplier in his own conveyance then such supplier is the transporter of the goods for the above rules and he shall generate consolidated eway bill.

Rules regarding availability of data filed in Part A of Eway bill Form for furnishing GSTR 1 return of the supplier : The rule says that 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 and where such information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e mail is available.

Rules regarding cancellation of Eway bills : The rule tells that, when
e-way bill has been generated following these rules or, where
generated following the rules but not transported or are not transported as per the details furnished in the e-way bill

then such 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

Rules regarding validity of Eway bill : An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned

# upto a distance of One hundred Kilometer, the validity period of eway bill stays to be 1 day
# For every 100 km or part thereof thereafter, the validity period is added by one additional day

Exceptional Cases : Under circumstances of an exceptional nature, where the goods cannot be transported within the validity period of the e-way bill, the Commissioner may by notification extend the validity period of e-way bill and the transporter then shall generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

Amendments : (a) Up to 100 km one days in case other than over dimensional cargo ; (b) For every 100 km or part one additional day in case other than over dimensional cargo; (c) Up to 20 km one day for over dimensional cargo .For every 20 km or part one additional day for over dimensional cargo

Finer Point Study :
What do we mean by Over dimensional Cargo ?
In simplest terms, ODC or Over Dimensional Cargo is a cargo that protrudes outside the loading deck of the vehicle transporting the cargo. If a truck with loading platform length of 20 feet is loaded with cargo like TMT bars of length 22 feet, then the TMT bars qualifies as Over-Dimension Cargo. If the same TMT bars were loaded on a vehicle with platform length of 22+ feet, it would have been classified as Normal Cargo rather than ODC. This definition of ODC is to resist industry from transporting Normal Cargo unnecessarily as ODC for small economic benefits compromising road user’s safety.

Rules regarding acceptance or rejection of eway bill : The details of e-way bill generated on the common portal shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill and this facility shall be made available in the common portal itself or through SMS or from Android API interface. But wherein, the recipient does not communicates his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

Rules exempting certain class of goods from operation of Eway bill on them : Notwithstanding anything contained in this rule, no e-way bill is required to be generated for

Specified goods (by way of annexure) which are being transported;

Finer Point Study :
Specified goods : These include domesticated animals like live bovine animals, swine and fish, fruits and vegetables, fresh milk, honey, seeds, cereals and flour. Also exempted is movement of betel leaves, non-alcoholic toddy, raw silk, khadi, earthen pot and clay lamps, puja samagri and hearing aids. The list also includes cooking gas (LPG) for supply to households and kerosene for sale under public distribution system (PDS), postal baggage, currency, jewellery and used personal and household effects.

Goods are being transported by a non-motorized conveyance;

Finer Point Study :
Non motorized conveyance: Non-motorized Transportation (also known as active transportation and human powered transportation) includes walking and bicycling, and variants such as small-wheeled transport (cycle rickshaws, skates, skateboards, push scooters and hand carts) and wheelchair travel.

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; and
in respect of movement of goods within such areas as are notified by GST Rules of the concerned states

Rules which clarifies what are the documents that are required to be carried by person in charge of conveyance : The person in charge of a conveyance shall carry-

(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Conclusion : In the recently concluded GST meeting as on 10th of March 2018,we saw few many relaxations with respect to generation of eway bills such as :

For goods transported from consignor place to transporters place for further transportation within a distance of up to 50 km , the Council decided to do away with Eway bill generation for this type of cases
For goods transported from transporters place to consignees place for a distance less than 50 km, then also eway bill is not required.
For goods transported up to a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighing or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery Challan. Even in this case the eway bill was relaxed and the Eway bill shall not be generated.

With Eway bill to be rolled back in from April 1,2018 onwards for inter-state movement of goods these set of relaxations and amendments are certainly welcomed by trades and industry as these will ease out their compliance profile. But to streamline the task of generating Eway bill is no task of human brain alone, one also needs the support of ERP system to comply with these rules of Eway bill to prepare eway bill on the go, when an invoice is prepared and also to export the Eway bill Form into JSON format to be eligible to upload on the common portal and Tally.ERP 9 would be a one stop pit shop for all those who wants to know how to generate eway bill and generate it which could be easily injected into the existing system of business operations with ease.

TAGS: E way bill,   E way bill rule,   how to generate eway bill,   CGST Act,  


Reply Posted On :
18 - 3 - 2019

well explained . ..

Reply Posted On :
23 - 3 - 2018

#E_Way Bill – A new Opportunity for Easy Transit - " An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences. "


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