The e-way bill system under the Goods and Services Tax (GST) Act of 2017 mandates the generation of electronic way bills for the movement of goods exceeding specified distances. It ensures seamless transportation of goods and aids tax authorities in monitoring compliance. The relevant legal provisions are outlined in GST Rule 138, which details the e-way bill requirements, including generation, contents, and validity.  

Under Rule 138, registered persons are required to generate e-way bills before the commencement of the movement of goods. This involves furnishing details such as the GSTIN of the recipient, place of delivery, invoice or challan number, and HSN code. Unregistered persons, on the other hand, may enroll on the common portal and generate e-way bills. The e-way bill is generally valid for the duration of the transit, and its cancellation or extension provisions are also outlined in the rules. Authorities can inspect e-way bills and associated documents during transit to verify compliance. It’s crucial to stay updated on any amendments or notifications issued by the GST council for the latest compliance requirements.

Procedural aspects of E-way bill

The e-way bill system under the GST Act 2017 is a mechanism for electronically tracking the movement of goods. Here are the key procedural aspect.
Generation of e-Way Bill:

  • The e-way bill can be generated on the official GST portal or through a mobile application.
  • It requires details such as the GSTIN of the consignor and consignee, the place of delivery, invoice or challan number, and the HSN code of the goods.

When to Generate:

  • The e-way bill must be generated before the commencement of the movement of goods.
  • For the transportation of goods by road, the e-way bill is required for any consignment value exceeding Rs. 50,000.

Validity of E-way Bill:

  • The validity of the e-way bill depends on the distance to be covered by the goods.
  • For a distance less than 100 km, the e-way bill is valid for a day, and for every additional 100 km or part thereof, it is valid for an additional day.

Transportation by Multiple Modes:

  • If the goods are transferred from one vehicle to another during transit, the transporter needs to update the details of the new vehicle in the e-way bill.

Cancellation of E-way Bill:

  • The e-way bill can be canceled within 24 hours of its generation. However, once it has been verified by a tax officer, it cannot be canceled.

Documents to be Carried:

  • The person in charge of the conveyance must carry the invoice or bill of supply, and a copy of the e-way bill during the transportation of goods.
  • Inspection by Authorities:
  • Tax officers may intercept the vehicle to verify the e-way bill and inspect the goods being transported.

Role of Transporter:

  • The transporter can also generate the e-way bill on behalf of the consignor or consignee.

Update or Modification of E-way Bill:

  • Corrections or updates to the e-way bill can be made within 24 hours of generation.

Integration with GST Returns:

  • Information from the e-way bill is automatically populated into the GST return forms.

It’s crucial for businesses to adhere to these procedures to ensure smooth and compliant movement of goods under the GST regime.