GST e-way Bill

As another big move in GST implementation series government is all set to introduce E-way bill for movement of goods across the country.

The much talked about E-way Bill will be rolled out across the country from 1st April 2018. This will become the common transit pass for the vehicle in each state.

However as of now it is decided to implement the E-way Bill rules in two stages i.e. from April 01,2018 and from June 01,2018 for inter as well as intra state movement of goods. E way bill will become mandatory Period up to 31st March 2018 will be used as trial period for all stakeholders.

E-way Bill :-

E-way Bill General Rule:- Goods value > Rs.50,000, Any movement of by registered person or inward supply from unregistered person.

Special Cases:- Any interstate movement irrespective of value:-

* Any goods, from Principal to Job worker.

* Handicraft goods from person exempted from registration.

Who is liable to generate:-

 Registered Person, Transporter, Principal or Person exempted from registration on case to case-basis.

For whom it is optional:-

Unregistered person until they are covered under special cases.

From where to generate:-

https://ewaybill3.nic.in/ewbnat8/ , Android App, SMS, ASP integration with web portal, using GST Suvidha Provider.

Which Form:-

EWB 01, which contains two parts-

Part A - Details of goods moved.

Part B - Details of vehicle.

After filing both only, E-Way Bill no.(EBN) can be generated.

Validity of E-way Bill:-

1 Day for first 100 Km thereafter for every 100Km or part thereof additional 1 day.

Documents Required to generate:-

• Invoice/Bill of Supply / Delivery Challan for consignment of goods.
• Transport by road through transporter : Transporter ID,
• Transport by road through owned/hired vehicle : Vehicle number.
• Transport by Rail/Air/Vessel : Transport document number, date of document.

Documents/Devices required to carry during Transit:-

• The invoice or bill of supply or delivery challan, as the case may be.
• A copy of the e-way bill or the EBN, either physically or web site.
• Where notified by the Commissioner, EBN mapped to a Radio Frequency Identification Device (RFID) embedded on to the convyance.

Exemption from E-way Bill :-

• Goods specified in annexure to E-way rules.
• Goods transport form non motorized vehicle
• Goods transport from port, airport, air cargo complex and land customs station to Inland container depot or Container Freight Station for Custom clearance.
• Transport in notified areas (till date no notification)

What are other forms:-

• EWB-02 : Consolidated E-way bill (for transporter, multiple consignment in single vehicle)
• EWB-03: Summary report of Inspection by department of goods in transit.
• EWB-04 : Intimation by transporter if vehicle is detained for more than 30minutes.
• GST INV-1 : For generating Invoice Reference Number (IRN).

What is E-Way Bill:-

As mandated by the Government in terms of Section 68 of the Central Goods and Services Tax Act read with rule 138 of the CGST rules 2017 E-way Bill is a document that is required to be carried y custodian of the goods while the goods are in transit.

it can be generated from the Common Portal http://e-waybill.nic.in

before commencement of movement of goods.

General Rule:-

This has been provided vide Rule 138(1) which says:-

"Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees:-

1. In relation to a supply, or
2. for reasons other than supply, or
3. 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.

Analysis of above rule:-

• Any movement of goods whether as supply (as defined in Section 7 of CGST Act 2017) or other than supply (e.g. Sale return, Stock Transfer within State, Goods sent for Demo purpose etc) of consignment value>Rs.50,000 will require E-way Bill.
• Meaning of Consignment Value should be taken as total invoice value.
• An inward supply from Unregistered person to Registered person of value > Rs.50,000 also require E-way bill.
• Sub Rule one casts 'first liability' to 'Furnish information' in Part A on 'Registered Person only' who causes movement of goods.
• Information must be furnished before commencement of movement of goods.

Please note E way bill will be generated through form EWB-01. This form has Two Parts as PART A ' this contains information w.r.t. Goods in movement and  'Part B' which contains details of vehicle and./or Transporter.

It is also to be noted that this sub rule only ask for 'Furnishing of information' in Part A, however E-way bill will be generated only after filling Part A and Part B both. Therefore this is not generated only information has been filed.

Who is liable to generate and who has the option to Generate:-

Now for the purpose of E-way bill, movement can happen in two ways:-

• By Road with Service of Transporter
• By Road without service of Transporter through Air, Vessel, Railways, Owned Vehicle or Hired Vehicle.

Further there can be transaction where:-

• Supplier,Recipient both registered.
• Only one of them is registered
• Both not registered

This can further be complicated by making each case as two cases considering:

• Transporter is registered in GST
• Transporter is not registered in GST

In light of 138 sub rule 2 and 3, we now try to solve the puzzle by creating a matrix of all possible cases.

Transaction	Recipient	Supplier	Transportation mode	Transporter	EWB-01 Part A	EWB-01 Part B
Intra/Inter State	Registered	Registered	By Road,through a Transporter	Registered	Registered Person who is making movement i.e. in whose name Consignment Note is issued	Transporter
Intra/Inter State	Registered	Registered	By Road,through a Transporter	Unregistered	Registered Person who is making movement i.e. in whose name Consignment Note is issued	Transporter
Intra/Inter State	Registered	Registered	By Train/Vessel/Hired or Owned Vehicle	Registered	Registered Person who is making movement i.e. - Who has booked the parcel in case of Air/Vassel/Rail Or - Who owns the vehicle in case of Movement in owned vehicle Or - who has hired the vehicle -	Registered Person who is making movement i.e. - Who has booked the parcel in case of Air/Vassel/Rail Or - Who owns the vehicle in case of Movement in owned vehicle Or - who has hired the vehicle
Intra State	Registered	Unregistered	By Road,through a Transport	Registered	Registered Person	Transporter
Intra State	Registered	Unregistered	By Road,through a Transport	Unregistered	Registered Person	Transporter
Intra State	Registered	Unregistered	Train/Vessel/Hired/Owned Vehicle	-	Registered Person	Registered Person
Intra State	Unregistered	Registered	By Road, through a Transporter	Registered	Registered Person	Transporter
Intra / Inter State	Unregistered	Registered	By Road, through a Transporter	Unregistered	Registered Person	Transporter
Intra /Inter State	Unregistered	Registered	By Road, through a Transporter	Unregistered	Registered Person	Transporter

Important points not to miss:-

• However Rule 138(1)(2)(3) cast first liability of E Way Bill on registered person who causes movement (as explained above i table), it may be noted that in case both registered party (Supplier and recipient) practically E Way bill can be generated by any one of them.
• First Proviso of Rule 138(3) gives an option to Registered Person Or the Transporter to generate the E Way bill even if value of consignment is
• In case of an Unregistered party (URP) involved in transaction, Second proviso of Rule 138(3) gives option even to unregistered party to generate E Way bill However currently for registering on E Way Bill portal GSTIN is required. However there is an option for unregistered Transporters to register with portal by genetrating Transporter ID with their Valid PAN. In our opinion option for unregistered person also will be activated soon.
• In case of URP supplier, interstate transaction is not possible as they are not allowed to supply interstate unless specifically allowed under GST Law. Therefore in above table only Intra-state is covered.

Special Cases where E-Way Bill is mandatory irrespective of Value of consignment:-

First and Second proviso to Rule 138(1) provides two special cases where E way Bill generation is mandatory irrespective of value.

• First Proviso: Interstate movement of goods from Principal to Job Worker.
• Second Proviso: Interstate movement of Handicraft Goods by a person who is exempted from requirement of registration under clauses (i) and (ii) of Section 24.

The e-way Bill System for Inter-State movement of goods across the country is being introduced from 01st April 2018. Few clarifications regarding the new e-way bill system are as follows:

1. Situation: -Consider a situation where a consignor is required to move goods from City X to City Z. He appoints Transporter A for movement of his goods. Transporter A moves the goods from City X to City Y. For completing the movement of goods i.e. from City Y to City Z, Transporter A now hands over the goods to Transporter B. Thereafter, the goods are moved to the destination i.e. from City Y to City Z by Transporter B. How would the e-way bill be generated in such situations?

Clarification : -It is clarified that in such a scenario, only one e-way bill would be required. PART A of FORMGST EWB-01 can be filled by the consignor and then the e-way bill will be assigned by the consignor to Transporter A. Transporter A will fill the vehicle details, etc. in PART B of FORMGST EWB-01and will move the goods from City X to City Y.

On reaching City Y, Transporter A will assign the said e-way bill to the Transporter B. Thereafter, Transporter B will be able to update the details of PART B of FORM GST EWB-01. Transporter B will fill the details of his vehicle and move the goods from City Y to City Z.

2. Situation : – Consider a situation where a Consignor hands over his goods for transportation on Friday to transporter. But, the assigned transporter starts the movement of goods on Monday. How would the validity of e-way bill be calculated in such situations?

Clarification: -It is clarified that the validity period of e-way bill starts only after the details in PART B of FORMGST EWB-01 are updated by the transporter for the first time.

In the given situation, Consignor can fill the details in PART A of FORM GST EWB-01 on Friday and handover his goods to the transporter. When the transporter is ready to move the goods, he can fill the PART B of FORM GST EWB-01 i.e. the assigned transporter can fill the details in PART B of FORM GST EWB-01 on Monday and the validity period of the e-way bill will start from Monday.