The e-way bill is an electronic document generated on a common portal which is required for the movement of goods in inter-state and intra-state transport, subject to certain conditions under the Goods and Services Tax rules. The generation of an e-way bill is a prerequisite for transporting goods above a specified value threshold and aims to ensure that goods movement is monitored and tax compliance is maintained throughout the supply chain.
The process begins with the filling of Part A and Part B of the e-way bill form. Part A primarily includes details related to the goods, such as invoice number, date, value, HSN code, and place of dispatch and delivery. Part B requires details related to the transporter, including mode of transport and vehicle number. Only after both these parts are completed can the portal generate the e-way bill.
Certain fields in the e-way bill are auto-populated by the system once the form is completed. These include the e-way bill number, e-way bill date, the identity of the generator, which can be the supplier, recipient, or transporter, and the validity period of the e-way bill. The validity period refers to the time duration for which the e-way bill is considered valid for the transport of goods.
The e-way bill is valid until midnight of the last valid day. This is based on the explanation provided under the relevant rules of the Central Goods and Services Tax (CGST) Rules. This midnight cutoff means that goods must reach their destination or be moved further before the day ends to avoid any violation related to e-way bill validity.
Auto Calculation of Validity Period Based on Distance
Since April 2019, the portal has been programmed to automatically calculate the validity period of the e-way bill based on the distance between the place of dispatch and the place of delivery. The distance is determined by the postal PIN codes entered in Part A of the e-way bill.
The system uses these PIN codes to calculate the motorable distance between the source and destination and displays this distance to the user. Importantly, the user is allowed to adjust this distance by up to 10 percent, which accommodates route variations or detours. For example, if the system calculates the distance as 655 kilometers, the user may increase it up to 720 kilometers to reflect a more accurate or preferred route.
In cases where the PIN codes of both the source and destination are the same, the user is allowed to enter a maximum distance of up to 100 kilometers. This adjustment was introduced to handle intra-city or local transport scenarios more effectively.
Users can verify the distance between two PIN codes by using the search functionality on the e-way bill portal, which provides the PIN-to-PIN distance feature. This tool helps ensure that the distance used for validity calculations is accurate and justified.
Validity Period of E-Way Bill
The validity of an e-way bill is dependent on the distance the goods are to be transported and the nature of the cargo. For normal cargo, the e-way bill is valid for one day for every 200 kilometers or part thereof. This means that if the distance is less than or equal to 200 kilometers, the validity is one day; for distances exceeding 200 kilometers, one additional day is added for each additional 200 kilometers or part of it.
This rule was amended on January 1, 2021. Previously, the validity period was calculated as one day for every 100 kilometers or part thereof. The extension to 200 kilometers per day allows for more practical and realistic timelines for transportation, reducing the burden of frequent renewals.
For over-dimensional cargo or multimodal shipments where at least one leg involves transportation by ship, the validity period is different. For such cargo, the e-way bill is valid for one day for every 20 kilometers or part thereof. The initial 20 kilometers count as one day, and for every subsequent 20 kilometers or part of 20 kilometers, one more day is added. This stricter validity period accounts for the complexity and slower movement typically involved in transporting over-dimensional cargo.
The term ‘over-dimensional cargo’ refers to cargo that exceeds the prescribed dimensional limits set by the Central Motor Vehicle Rules under the Motor Vehicles Act. Such cargo usually requires special permits and handling due to its size or indivisible nature.
Extension and Renewal of Validity
The Commissioner has the authority to extend the validity period for certain categories of goods by issuing notifications. These extensions can be made to accommodate specific situations or goods that may require longer transport times.
In exceptional circumstances, such as delays caused by unforeseen events, including transhipment issues, the transporter can extend the validity period of the e-way bill after updating the relevant details in Part B of the e-way bill form. This extension must be done within eight hours of the expiry of the original validity period.
If the goods still cannot be transported within the extended validity period, the transporter has the option to generate a fresh e-way bill after updating Part B details. The rules do not clearly define who decides what constitutes an exceptional circumstance, leaving room for interpretation.
During the nationwide lockdowns in 2020 due to the coronavirus pandemic, general extensions were granted automatically for e-way bills whose validity expired during specific periods. For instance, e-way bills expiring between March 20, 2020, and April 15, 2020, had their validity extended till April 30, 2020. Further extensions were provided till June 30, 2020, for e-way bills generated on or before March 24, 2020, whose validity expired on or after March 20, 2020. These extensions were implemented to ease the movement of essential goods during lockdown restrictions.
Verification of Authenticity of the E-Way Bill
After the e-way bill is generated, it is essential to verify its authenticity to ensure that the transportation of goods complies with Goods and Services Tax (GST) regulations. This verification process helps prevent the misuse of e-way bills and ensures that all goods in transit have proper documentation, thereby facilitating smooth logistics and minimizing the risk of penalties or legal complications. Verification acts as a safeguard for both the transporters and tax authorities by confirming that the e-way bill is valid and corresponds to the actual movement of goods.
The most common way to verify an e-way bill is through the official e-way bill portal. This method requires entering several details such as the unique e-way bill number, the date on which the e-way bill was generated, the generator’s identification number, and the related document number (such as the invoice or delivery challan number). Upon submitting these details, the system cross-checks the information against the database and confirms whether the e-way bill is valid. This verification process helps ensure that the document has been properly generated, has not been cancelled or expired, and that the goods being transported match the information provided in the bill.
However, while this portal-based verification method is accurate and comprehensive, it can be cumbersome and time-consuming, especially for transporters and authorities who may need to perform verification frequently or while on the move. Accessing the portal requires internet connectivity, logging in, and carefully inputting multiple data points, which may not always be practical in field situations such as checkpoints, weighbridges, or toll plazas.
To address these practical challenges, a simpler and faster alternative method of verification has been introduced. This involves sending an SMS with the e-way bill number to a designated mobile number provided by the GST authorities. Transporters or officials can quickly send a text message containing just the e-way bill number without needing to input any additional details. In response, they receive an immediate SMS confirming the authenticity and status of the e-way bill. This SMS confirmation typically includes information such as the validity of the e-way bill, the name of the consignor and consignee, and the details of the goods being transported.
This SMS-based verification system offers significant convenience for transporters, enforcement officials, and other stakeholders. It reduces the time taken for verification and eliminates the need for internet access or device-specific applications. This real-time, easy-to-use option supports effective compliance checks during transit and helps reduce delays. Moreover, it aids authorities in promptly identifying any discrepancies or fraudulent e-way bills, thereby enhancing the overall integrity of the GST transportation system.
Responsibilities of the Transporter After Generation of the E-Way Bill
Once the e-way bill is generated, the transporter must ensure that it accompanies the goods throughout the transportation process. The e-way bill can be in either electronic form or physical printout, and it must be readily available for inspection by GST officers during transit.
In cases where the supplier has generated an e-invoice containing a QR code with an embedded Invoice Reference Number, the transporter is not required to carry the physical copy of the tax invoice. The QR code is sufficient for verification purposes by the proper officer. This reduces the paperwork burden and facilitates easier compliance.
When goods are transferred from one conveyance to another during transit, the transporter must update the conveyance details on the e-way bill portal before the goods continue their journey. This ensures that the e-way bill remains valid and reflects the correct mode of transport.
If multiple consignments are being transported in the same vehicle, a consolidated e-way bill may be generated by the transporter. The consolidated e-way bill includes the serial numbers of all individual consignments, simplifying the documentation process for bulk transportation.
Cancellation of E-Way Bill
If the goods are not transported or are transported in a manner different from the details provided in the e-way bill, the bill must be cancelled electronically on the common portal within 24 hours of its generation. This provision prevents misuse of e-way bills and maintains accuracy in record-keeping.
It is important to note that an e-way bill cannot be cancelled if it has already been verified in transit by GST officers. This ensures that once the transportation process has been officially recognized, the e-way bill remains valid and cannot be rescinded arbitrarily.
The practical challenges of cancellation include situations such as accidents,, where the transporter may find it difficult to cancel the e-way bill before attending to emergencies. The rules do not address the consequences if the transporter fails to cancel the e-way bill within the stipulated time.
Use of Radio Frequency Identification Device by Specified Transporters
The Commissioner may require certain classes of transporters to obtain a unique Radio Frequency Identification Device (RFID),, which must be embedded on the vehicle. The e-way bill details can then be mapped to this RFID device before the movement of goods.
The use of RFID helps in real-time tracking and verification of the vehicle and the goods it is carrying. It facilitates smooth monitoring by authorities and can reduce the need for physical document checks during transit.
Documents to be Carried by the Person in Charge of the Conveyance
The person responsible for transporting the goods must carry specific documents during transit. These include the invoice, bill of supply, or delivery challan, depending on the nature of the goods and transaction.
Alongside these documents, a copy of the e-way bill or the e-way bill number must be carried either physically or mapped electronically to the RFID device embedded on the vehicle. This is mandatory for road transport but not for goods transported by rail, air, or vessel.
For goods transported by rail, air, or vessel, carrying a copy of the e-way bill is not required. This exemption acknowledges the different nature of transport modes and their existing documentation systems.
Carrying Tax Invoice or Bill of Supply When E-Way Bill is Not Required
In scenarios where an e-way bill is not required, the person in charge of the conveyance must still carry a copy of the tax invoice or bill of supply. This is to ensure that goods movement can be verified and tracked even when the e-way bill exemption applies.
If neither a tax invoice nor a bill of supply is required, a delivery challan must accompany the goods. The delivery challan acts as a substitute document detailing the goods being transported, especially in cases of non-supply movements such as job work or returns.
Even when an e-way bill is required, the relevant tax invoice, bill of supply, or delivery challan should accompany the goods for proper verification. This layered documentation approach helps maintain transparency and accountability throughout the supply chain.
Electronic Invoice Reference Number and Its Impact on E-Way Bill Generation
The introduction of the electronic Invoice Reference Number (IRN) has streamlined the process of e-way bill generation and verification. When an invoice is issued in the prescribed e-invoice format, it contains a QR code embedding the IRN. This QR code can be electronically produced for verification by the proper officer, eliminating the need to carry a physical copy of the tax invoice during transport. This provision simplifies compliance and reduces paperwork for transporters.
Suppliers can obtain the IRN electronically by uploading their tax invoices to the common portal as per the prescribed format. Upon obtaining the IRN, the details in Part A of the e-way bill form are auto-populated by the portal based on the uploaded invoice information. This auto-population minimizes errors and ensures consistency between the invoice and e-way bill data.
Although carrying the physical copy of the tax invoice is generally dispensed with when an IRN is produced, the Commissioner may, through notification, require the person in charge of the conveyance to carry either the tax invoice, bill of supply, or delivery challan instead of the e-way bill in specific circumstances. Such notifications ensure that authorities retain discretion to enforce compliance based on practical considerations in particular sectors or regions.
Communication Between Supplier and Recipient Regarding E-Way Bill Details
The e-way bill system facilitates communication of the consignment details entered in Part A to the registered supplier and recipient involved in the transaction. If the supplier uploads the information, it becomes available to the recipient on the portal, and vice versa. This transparency allows both parties to verify the consignment details before or during transportation.
The supplier or recipient is required to communicate acceptance or rejection of the consignment details within seventy-two hours of the details being made available or before the delivery of goods, whichever occurs earlier. If no communication is received within this timeframe, the details are deemed accepted by default.
This acceptance relates specifically to the accuracy of the consignment information such as the recipient’s name, address, and the goods described. It does not amount to conclusive proof of receipt or supply of goods. The parties retain the right to contest or clarify the consignment details if discrepancies arise.
Although the acceptance mechanism is intended to enhance accountability, it may carry risks as it assumes agreement in the absence of explicit confirmation. Careful attention by suppliers and recipients to the details on the portal is necessary to avoid unintended acceptance of incorrect information.
Role of the Relevant Date in Validity Calculation
The “relevant date” for calculating the validity of the e-way bill is the date on which it was generated. The validity period begins from the time of generation, and each day of validity expires at midnight of the following day.
This means that if an e-way bill is generated at any time during a day, that day counts as the first day, and the validity countdown continues until midnight of the last valid day as per the distance-based validity rules. This ensures clarity and uniformity in determining the period during which the e-way bill remains valid.
Understanding the concept of the relevant date is essential for transporters to plan their logistics and avoid penalties related to the expiry of e-way bills during transit.
Handling of Over-Dimensional Cargo and Special Validity Rules
Over-dimensional cargo refers to goods transported as a single indivisible unit that exceeds the dimensional limits prescribed by the Central Motor Vehicle Rules. These goods often require special handling and permits due to their size and weight.
The e-way bill validity for over-dimensional cargo is calculated differently from normal cargo. The validity period is one day for every 20 kilometers or part thereof, reflecting the slower movement and complexity involved in transporting such goods.
This special provision acknowledges the challenges faced in moving oversized cargo and provides a practical timeline for transporters to complete deliveries without repeated renewals of e-way bills.
The transport of over-dimensional cargo requires close coordination with authorities, and adherence to these validity rules is critical to ensure compliance and avoid penalties.
Transhipment and Updates During Transit
During the course of transporting goods, it may become necessary to transfer the consignment from one conveyance to another. Such transhipment requires the transporter to update the conveyance details on the e-way bill portal before further movement of goods. This ensures that the e-way bill remains valid and reflects the accurate transport information at all times.
The updating of conveyance details must be done in Form GST EWB-01 on the common portal. Failure to update these details can lead to non-compliance issues and potential penalties during transit inspections. This rule supports the dynamic nature of transportation logistics and helps maintain transparency in the movement of goods.
Consolidated E-Way Bills for Multiple Consignments
When multiple consignments are transported together in one conveyance, the transporter has the option to generate a consolidated e-way bill. This consolidated bill includes the serial numbers of all individual consignments and simplifies documentation and verification processes.
The consolidated e-way bill must be generated before the movement of goods and uploaded to the common portal. This facility reduces administrative workload and facilitates easier monitoring for transporters handling multiple shipments in a single vehicle.
Using consolidated e-way bills improves efficiency, especially in logistics and supply chain operations involving multiple suppliers or recipients in one transport batch.
Procedures for Cancellation of E-Way Bill
If an e-way bill has been generated but the goods are either not transported or transported differently than the details provided, the e-way bill must be cancelled electronically on the portal within 24 hours of generation.
Cancellation is an important control to prevent misuse of e-way bills and ensurethat records accurately reflect actual transportation activities. However, an e-way bill cannot be cancelled if it has already been verified by tax authorities during transit.
Situations such as accidents or emergencies may make timely cancellation difficult, but the rules do not provide explicit guidance on consequences if cancellation is not performed within the stipulated period. Transporters must remain vigilant to avoid compliance issues related to cancellation.
Role of Authorities and Commissioner in E-Way Bill Regulations
The Commissioner has the authority to notify specific classes of transporters to install Radio Frequency Identification Devices (RFID) on their conveyances. This requirement aids in automated tracking and mapping of e-way bills to vehicles, enhancing monitoring capabilities.
Additionally, the Commissioner may issue notifications extending validity periods for certain categories of goods or prescribe situations where physical copies of tax invoices or delivery challans must be carried instead of e-way bills.
These powers allow flexibility within the regulatory framework to address practical challenges faced in goods transportation and ensure that the system adapts to changing needs.
Conclusion
The e-way bill system is a vital component of the Goods and Services Tax framework, designed to regulate and monitor the movement of goods efficiently. Generating an e-way bill after accurately completing Part A and Part B ensures legal compliance and smooth transit. The validity of the e-way bill, determined by the distance and type of cargo, must be carefully observed to avoid penalties.
Transporters, suppliers, and recipients all have important roles in maintaining the authenticity, updating transport details, and ensuring the proper documentation accompanies the goods. Provisions such as electronic Invoice Reference Numbers and consolidated e-way bills simplify compliance and reduce paperwork.