All About E-Way Bill

In this Article you will Learn :-

What is E-way bill?

• What is E-Way Bill?
• When is it mandatory to make E-Way Bill?
• What will be the consignment value?
• When will E-way bill have to be generated, even if the consignment value is not more than Rs 50000/-.
• Who can generate E-way bill?
• How to generate E-way bill?
• What is the validity of E-way bill?
• How can the validity of E-way bill be extended?
• When can E-way bill be cancelled?
• Can the transporter also issue e-way bill?
•  In which cases can E-way bill be blocked?
•  What will be the impact on the taxpayer if the e-way bill is blocked?
• How can E-way bill be unblocked?
• How much penalty can be imposed on non-generation of E-way bill?

E-way bill is a document in which movement of goods is indicated. Before the movement of goods, the supplier gives intimation of the movement of goods to the government in the form of E-way bill. E-way bill is carried by the transporter during movement of goods.

When is it mandatory to make E-Way Bill?

If the value of your consignment is Rs. If it is more than Rs 50,000, then you have to inform the government about this movement through E-way bill.

Movement of goods can happen due to all these reasons-

1. The reason for movement may be supply.
2. The reason for movement can also be other than supply.

Example-1:- Mr. ABC has two branches in Madhya Pradesh, one in Indore and the other in Bhopal. If the stock is being transferred from Indore branch to Bhopal branch, even if it is not supplied. But, if there is movement of goods, then E-way bill will have to be made.

Example-2:- Like you are sending goods to your job worker. Even if there is no supply, it is necessary to prepare E-way bill.

1. It is necessary to prepare E-way bill even in case of sales return. Even if goods are being returned, it is necessary to have E-way bill with it.
2. If inward supplies are from an unregistered person, then in this case also E-way bill has to be generated.

What will be the consignment value?

As you know that E-way bill is liable for consignment value of more than Rs 50,000/-. Consignment value is determined according to Section-15. Consignment value includes taxable value of supply and GST. Tax free supply is not considered to determine consignment value. For Example:- If you include both taxable supply and exempted supply in the same invoice, then you have to take only taxable value and tax for consignment value.

Example : Suppose the value of your invoice is Rs.53200/-, taxable value is Rs.40000/-, value of tax free goods is Rs.6000/- and GST is Rs.7200/-.

In this case you do not need to make E-way bill, because the consignment value is Rs.47,200, which is Rs. Does not exceed Rs 50000/- when E-way bill Will have to be made, even if the consignment value is not more than Rs 50000/-.

In some cases, you have to make mandatory E-way bill on the movement of goods, even if the consignment value does not exceed Rs.50,000/-.

Let us understand these cases-

1. If the principal is transferring inter state goods to the job worker then no matter what the value is, making E-way bill is mandatory.
2. If you are transferring handicraft goods inter state and you are exempted from taking GST registration according to section 24, then making E-way bill is mandatory in this case.

When is it not mandatory to generate e-way bill?

If you are transferring the goods from your place to the transporter's place for further transportation, the distance of which is less than 50 kilometers and is within a state or union territory, then in that case you will get the details of conveyance in Part –B. No need to fill.

Similarly, if the transporter is transferring goods from his business place to the consignee's place, the distance of which is less than 50 km, then in that case it is not necessary to update the details of conveyance in the E-way bill.

Who can generate E-way bill?

E-way bill can be generated by

1. Supplier
2. Registered person
3. Unregistered person
4. Receiver, if goods are sent by unregistered person to registered recipient
5. Transporter

Keep in mind that even if you are a composition dealer, you have to generate E-way bill.

How to generate e-way bill?

E-way bill has to be generated from E-way bill website https://ewaybillgst.gov.in.

There are two parts of E-way bill.

Part A and Part B

Part –A :- The registered person who moves the goods is required to file Part A of the E-way bill before starting the movement of goods. In Part A, it is important to mention the transporter ID or vehicle number along with the invoice details. After Part A of the e-way bill is filed, no modification can be made in it. On filing Part A of the E-way bill, you will generate a unique number which will be valid for 72 hours to update Part B of the E-way bill.

Part –B :- After Part-A is filed by the supplier or receiver, Part-B is filed by the transporter. As long as the time limit of E-way bill has not expired, there is no limit on the number of times it can be updated. But keep in mind that the actual movement of the vehicle should match the description of the described vehicle.

When an unregistered transporter enrolls himself on the e-way bill portal, he is issued a Transporter ID. With the help of this Transporter ID he can issue E-way bill anytime.

The transporter can update Part B of the e-way bill. The reason for this could be anything like transferring the goods from another vehicle if the vehicle breaks down or more than one transporter is involved in taking the consignment to the end consignee.

What is the validity of e-way bill?

As soon as the E-way bill is generated, the system tells the validity period of the E-way bill according to the approximate distance. Movement of goods done after the validity of e-way bill is over is called illegal.

The validity of E-way bill remains as follows:

How can the validity of e-way bill be extended?

The validity of E-way bill can be extended up to 8 hours before the E-way bill expires or 8 hours after the E-way bill expires.

Only the transporter can extend the validity.

When can E-way bill be cancelled?

Due to some mistakes you may have to cancel the E-way bill. Unless you cancel the old E-way bill related to the same invoice, you cannot issue a new E-way bill. The supplier or receiver or transporter who has created the E-way bill can cancel it within 24 hours. But if the e-way bill has been verified in transit by the concerned officer, then it cannot be cancelled.

Transporter can also issue e-way bill

The transporter of the vehicle by which the goods are being transported also has the right to issue e-way bill. But, this is required only when e-Way Bill has not been issued by the supplier and receiver of the goods.

E-commerce operator or courier company can also issue e-way bill on behalf of the consignor with his consent.

Goods can also be sent by public transport, but in such a case, the responsibility of issuing e-way bill will be solely on the consignor sending the goods or the consignee receiving the goods.

Liability of unregistered person to generate E-way bill

An unregistered person also needs to issue an e-Way Bill if he sends goods worth more than Rs 50,000/-. However, when an unregistered person supplies to a registered person, then in this case the registered receiver has to fulfill all the compliances.

Reject E-way bill

One option on the E-way bill portal is that if the recipient has not received the consignment or the wrong E-way bill has been generated by the supplier/recipient, then you can reject that E-way bill. Other party can reject the E-way bill within 72 hours of E-way bill generation. If it is not rejected within 72 hours then it will be considered accepted.

When can E-way bill be blocked:-

If the taxpayer does not file FORM GSTR-3B / FORM CMP-08 for two consecutive month/quarter (as the case may be) i.e. two tax periods, then the e-way bill generation will be blocked, meaning the taxpayer e-way will not be able to generate bill.

Example: If a registered person has not filed return for January'23 & February'23. Meaning, if he has been defaulting in return filing for 2 consecutive months, then in such a case the E-way bill generation facility will be blocked.

What will be the impact on Taxpayer if E-way bill is blocked:-

The person whose e-way bill is blocked can neither supply the goods anywhere nor receive them from anyone else. This will have a huge impact on your business, because you will neither be able to sell nor buy.

To generate e-way bill, GSTIN of such blocked taxpayer cannot be used.

If goods are moved without generating e-way bill, the authority can impose fine or seize/detain the goods. If your goods are seized/detained, they will be released only after paying the penalty.

How can E-way bill be unblocked:-

When the taxpayer files Form GSTR-3B / Form CMP-08 or his default period of return filing is less than 2 tax periods, then automatically his e-way bill gets unblocked on the next day.

Example: Suppose you have the liability of filing monthly return and you have not filed GSTR-3B for April-2023 and May-2023, then due to this your e-way bill has been blocked. So in this case, if you file the return of April-2023, then the default period will be less than 2 months and this will unblock your e-way bill.

How much penalty can be imposed on non-generation of E-way bill?

If the E-way bill has not been generated or has not been generated as per the rules, then penalty may be imposed on you.

According to section 122 of CGST Act, if movement of goods is done without E-way bill, then Rs. A penalty of Rs 10000/- or the amount of tax evaded, whichever is higher, can be imposed.

If movement of goods takes place without E-way bill, then in such a case both the goods and the vehicle carrying the goods can be detained or confiscated.

In cases where goods and vehicle have been detained or seized, the penalty for realization of goods and vehicle will be:

• Where the owner of the goods comes forward for payment of such penalty :

Where the owner of goods (suo moto) comes forward voluntarily and pays the penalty, in that case 200% of tax payable on such goods.

And

In case of exempted goods, 2% of value of goods or Rs.25000, whichever is less, will have to be paid.

• where the owner of the goods does not come forward for payment of such penalty :

Where the owner of goods himself does not come forward, then 50% of value of goods or 200% of tax payable, whichever is higher.

And

In case of exempted goods, 5% of value of goods or Rs.25000 whichever is less will have to be paid.

• The goods and conveyance will be released only after giving security of the amount of penalty to be paid.

There is a penalty for making wrong e-way bill, although CBIC has issued a Circular No. 64/38/2018-GST dated 14-09-2018, it has been made clear that if all the documents along with the movement of goods are accompanied by E-way bill, then in these cases you will not be penalized: -

(a) If there is a spelling mistake in the name of the consignor or consignee, although the GST number is correct.

(b) In the E-way bill, the address of both the consignor and the consignee is correct, but there is a mistake in the pin code, although that mistake is such that the validity of the E-way bill is not being extended, then penalty will not be imposed.

(c) There is a mistake in the address of the consignee, but the locality & other details of the consignee are correct.

(d) There is a mistake in one or two digits of the document number mentioned in the E-way bill.

(e) There is an error in 4 or 6 digits of HSN, although the first 2 digits are correct and the specified rate of tax is also correct.

(f) There is a mistake in one or two digits or characters of the vehicle number.

In all these cases, according to section 125, CGST is Rs. 500 & SGST Rs. A penalty of Rs 500 may be imposed. If IGST is charged then a penalty of Rs.1,000/- will be imposed.

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