Ankita Khetan | Feb 6, 2018 |
Frequently Asked Questions on E Way Bill
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Q 1. What is an E Way Bill
Ans. E-way bill (FORM GST EWB-01) is an electronic document (available to supplier/recipient / transporter) generated on the common portal evidencing movement of goodsof consignment value more than Rs. 50000/-. It has two Components-Part A comprising ofdetails of GSTIN of supplier & recipient, place of delivery (indicating PIN Code also),
document (Tax invoice, Bill of Supply, Delivery Challan or Bill of Entry) number and date,value of goods, HSN code, and reasons for transportation; and Part B comprising oftransport details – transport document number (Goods Receipt Number or Railway ReceiptNumber or Airway Bill Number or Bill of Lading Number) and Vehicle number for road.
Q 2. What is the common portal for e-way bill
Ans. The Common Goods and Services Tax Electronic Portal for furnishing electronicway bill is www.ewaybillgst.gov.in.
Q 3. What is consignment value
Ans. The consignment value of goods shall be the value, determined in accordance withthe provisions of section 15 of the CGST Act, 2017, declared in an invoice, a bill of supply ora delivery challan, as the case may be, issued in respect of the said consignment and alsoincludes the central tax, State or Union territory tax, integrated tax and cess charged, if
any, in the document.
Q 4. Whether consignment value of goods shall include tax also In case ofmovement other than by way of supply, value may not be available How tovalue such cases
Ans. As per Explanation 2 to Rule 138(1) of CGST Rules, 2017, the consignment valueshall also include the Central tax, State or Union territory tax, integrated tax and cesscharged, if any, in the document. Furthermore, in view of the valuation provisions inSection 15 of the CGST Act, 2017, Customs duty shall also be included in the value of
goods.
In case of movement of goods for reasons other than supply, the movement would beoccasioned by means of a delivery challan which is a mandatory document. The deliverychallan has to necessarily contain the value of goods as per Rule 55 of the CGST Rules,2017. The value given in the delivery challan should be adopted in the e-way bill.
Q 5. What are the benefits of e-way bill
Ans. Following benefits are expected from e-way bill mechanism
(i) Physical interface to pave way for digital interface resulting in elimination ofstate boundary check-posts
(ii) It will facilitate faster movement of goods
(iii) It will improve the turnaround time of trucks and help the logistics industry byincreasing the average distances traveled, reducing the travel time as well ascosts.
Q 6. When will the e-way bill provisions be implemented
Ans. The e-way bill provisions in respect of inter-state supplies of goods shall beimplemented w.e.f 1st February, 2018.
The States may choose their own timings for implementation of e-way Bill for intra-Statemovement of goods on any date before 1st June,2018.
Q 7. When should an e-way bill be generated
Ans. As per Rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior tothe commencement of transport of goods.
Q 8. Whether E-way bill need to be generated for all movements of goods
Ans. E-way bill is not required to be generated in the following cases:
a) Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017which is reproduced below:
b) Goods being transported by a non-motorized conveyance;
c) Goods being transported from the port, airport, air cargo complex and landcustoms station to an inland container depot or a container freight station forclearance by Customs; and
d) In respect of movement of goods within such areas as are notified under rule138(14) (d) of the SGST Rules, 2017 of the concerned State.
e) where the goods, other than de-oiled cake, being transported are specified in theSchedule appended to notification No. 2/2017- Central tax (Rate) dated the 28thJune, 2017
f) where the goods being transported are alcoholic liquor for human consumption,petroleum crude, high speed diesel, motor spirit (commonly known as petrol),natural gas or aviation turbine fuel; and
g) where the goods being transported are treated as no supply under Schedule III ofthe Act.
Q 9. Whether an e-way bill is to be issued, even when there is no supply
Ans. Yes. Even if the movement of goods is caused due to reasons others than supply, the e waybill is required to be issued. Reasons other than supply include movement of goods dueto job-work, replacement under warranty, recipient not known, supply of liquid gas wherequantity is not known, supply returns, exhibition or fairs, for own use, Sale on approval
basis and others etc.
Q 10. Who should generate e-way bill
Ans. An e-way bill contains two parts- Part A to be furnished by the registered personwho is causing movement of goods of consignment value exceeding Rs. 50,000/- and part B(transport details) is to be furnished by the person who is transporting the goods.
Where the goods are transported by a registered person-whether as consignor orrecipient, the said person shall have to generate the e-way bill (by furnishing informationin part B on the common portal) Where the e-way is not generated by registered personand the goods are handed over to the transporter, for transportation of goods by road, theregistered person shall furnish the information relating to the transporter in Part B ofFORM GST EWB-01 on the common portal and the e-way bill shall be generated by thetransporter on the said portal on the basis of the information furnished by the registeredperson in Part A of FORM GST EWB-01.
In a nutshell, E-way bill is to be generated by the consignor or consignee himself (if thetransportation is being done in own/hired conveyance or by railways by air or by Vessel)or the transporter (if the goods are handed over to a transporter for transportation byroad). Where neither the consignor nor consignee generates the e-way bill and the valueof goods is more than Rs. 50,000/- it shall be the responsibility of the transporter togenerate it.
In case the goods to be transported are supplied through an e-commerce operator, theinformation in Part A may be furnished by such e commerce operator.
Q 11. Who has to generate E-way bill in case of transportation of goods by rail,air or vessel
Ans. The registered person, being the supplier or recipient, is required to generate E wayBill by furnishing the information in part B of the E-Way bill viz transport documentnumber (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill
of Lading Number).
Q 12. Who causes movement of goods
Ans. The movement of goods can be caused by the supplier, if he is registered and heundertakes to transport the goods. In case the recipient undertakes to transport orarrange transport, the movement would be caused by him.
In case 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 thetime of commencement of the movement of goods.
Q 13. Is there any time gap allowed between furnishing information in Part-Aand updating transport details in Part-B
Ans. On furnishing of Part-A, a unique number will be generated on the portal whichshall be valid for 72 hours for updation of Part B of FORM GST EWB-01.
Q 14. Is it mandatory to generate e-way bill What if not done What are theconsequences for non-issuance of e-way bill
Ans. It is mandatory to generate e-way bill in all cases where the value of consignmentof goods being transported is more than 50,000/- and it is not otherwise exempted interms of Rule 138(14) of CGST Rules, 2017.
Further no e-way bill is required to be generated in respect of goods being transported bya non-motorized conveyance; goods being transported from the port, airport, air cargocomplex and land customs station to an inland container depot or a container freightstation for clearance by Customs; and in respect of movement of goods within such areasas are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State.
If e-way bills, wherever required, are not issued in accordance with the provisionscontained in Rule 138, the same will be considered as contravention of rules. As per Section122(1)(xiv) of CGST Act, 2017, a taxable person who transports any taxable goods withoutthe cover of specified documents (e-way bill is one of the specified documents) shall beliable to a penalty of Rs. 10,000/- or tax sought to be evaded (wherever applicable)whichever is greater. Moreover, as per Section 129(1) of CGST Act, 2017, where any persontransports any goods or stores any goods while they are in transit in contravention of theprovisions of this Act or the Rules made thereunder, all such goods and conveyance used as
a means of transport for carrying the said goods and documents relating to such goodsand conveyance shall be liable to detention or seizure.
Q 15. Is e-way bill required when the goods are supplied by an unregisteredsupplier
Ans. Where the goods are supplied by an unregistered supplier to a recipient who isregistered, the movement shall be said to be caused by such recipient if the recipient isknown at the time of commencement of movement of goods. The recipient shall be liable togenerate e-way bill.
There could be three possibilities as below:
Q 16. What are the reasons for transportation to be furnished in the part A of e waybill
Ans. E-way bill is to be issued for movement of goods, irrespective of the fact whetherthe movement of goods is caused by reasons of supply or otherwise. The format for GSTEWB-01 lists ten reasons for transportation viz Supply, Export or Import, Job Work, SKD orCKD, Recipient not known, Line Sales, Sales Return, Exhibition or fairs, for own use and
Others, one of which can be chosen.
Q 17. Whether an unregistered transporter need to compulsorily enroll on the e waybill system
Ans. Yes, in terms of Rule 58 of the CGST Rules, 2017 read with section 35(2) of the CGSTAct, 2017, a transporter and operator of godown or warehouse, if not already registered,shall have to enroll on the common portal by filing GST ENR-01.
The transporter enrolled in any one State or UT shall be deemed to be enrolled in otherStates as well.The unregistered transporter gets a transporter Id when he enrols on the system.
Q 18. What is invoice reference number
Ans. A registered person may obtain an Invoice Reference Number from the commonportal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1and produce the same for verification by the proper officer in lieu of the tax invoice andsuch number shall be valid for a period of thirty days from the date of uploading.
In the above case, the registered person will not have to upload the information in Part Aof FORM GST EWB-01 for generation of e-way bill and the same shall be auto-populatedby the common portal on the basis of the information furnished in FORM GST INV-1.
Q 19. Can the e-way bill be cancelled if the goods are not transported aftergeneration of e-way bill
Ans. Where an e-way bill has been generated, but goods are either not beingtransported or are not being transported as per the details furnished in the e-way bill, thee-way bill may be cancelled electronically on the common portal, either directly orthrough a Facilitation Centre notified by the Commissioner, within 24 hours of generationof the e-way bill.
However, if the e-way has been verified in transit in accordance with the provisions of rule138 B of the CGST Rules, 2017, the same cannot be cancelled.
Q 20. What happens if the conveyance is changed en-route
Ans. Where the goods are transferred from one conveyance to another, the consigner orthe recipient, who has provided information in Part- A of the FORM GST EWB-01, or thetransporter shall, before such transfer and further movement of goods, update the detailsof conveyance in the e-way bill on the common portal in FORM GST EWB-01.
Any transporter transferring goods from one conveyance to another in the course oftransit shall, before such transfer and further movement of goods, update the details of theconveyance in the e-way bill on the common portal in FORM GST EWB-01.
Q 21. Can the transporter assigned by a supplier or recipient further re-assignthe e-way bill to another transporter
Ans. The consignor or the recipient, who has furnished the information in Part-A, or thetransporter, may assign the e-way bill number to another registered or enrolledtransporter for updating the information in Part-B for further movement of consignment.
However once the details of the conveyance have been updated by the transporter in PartB of FORM GST EWB-01, the consignor or recipient, as the case maybe, who has furnishedthe information in Part-A of FORM GST EWB-01 shall not be allowed to assign the e-waybill number to another transporter.
Q 22. How does transporter come to know that particular e-way bill has beenassigned to him
Ans. The transporter comes to know the EWBs assigned to him by the taxpayers fortransportation, in one of the following ways:
Q 23. How does the supplier or recipient come to know about the e-way billsgenerated on his GSTIN by other person/party
Ans. The supplier or the recipient can view the same from either of the followingoptions:
Q 24. How does the tax payer become transporter in the e-way bill system
Ans. To change his position from supplier or recipient to transporter, the tax payer hasto select the option Register as Transporter under registration and update his profile.Once it is done, the system changes tax payer as transporter.
Q 25. How many times can Part-B or Vehicle number be updated for an e-waybill
Ans. The Part-B (Vehicle details) can be updated as many times as one wants formovement of goods to the destination. However, the updating should be done within thevalidity period and at any given point of time, the vehicle number updated should be thatof the one which is actually carrying the goods. The validity of e-way bill is not recalculated
for subsequent entries in Part-B.
Q 26. What is the concept of acceptance of e-way bill by the recipient
Ans. The details of e-way bill generated shall be made available to the
(a)supplier, if registered, where the information in Part A of FORM GST EWB-01 has beenfurnished by the recipient or the transporter; or
(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has beenfurnished by the supplier or the transporter,on the common portal, and the supplier or the recipient, as the case maybe, shallcommunicate his acceptance or rejection of the consignment covered by the e-way bill.
In case, the person to whom the information in Part-A is made available, does notcommunicate his acceptance or rejection within seventy-two hours of the details beingmade available to him on the common portal, it shall be deemed that he has accepted thesaid details.
Q 27. What happens if multiple consignments are transported in oneconveyance
Ans. Where multiple consignments are intended to be transported in one conveyance,the transporter may indicate the serial number of e-way bills generated in respect of eachsuch consignment electronically on the common portal and a consolidated e-way bill inFORM GST EWB-02 may be generated by him on the common portal prior to the
movement of goods.
The various situations where multiple consignments are transported in one conveyancemay be as under:
Q 28. Many distributors transport goods of multiple customers and know thedetails of the requirement only at the time of delivery What to do if name ofthe consignee is not known
Ans. Such movement of goods would be for reasons other than supply. The reasons fortransportation will have to be mentioned in the Part A of the e-way bill.
Q 29. What is the validity period of e-way bill
Ans. The validity of e-way bill remains valid for a time period which is based on distanceto be traveled by the goods as below:
Q 30. What is a day for e-way bill How to count hours/day in e-way bill
Ans. This has been explained in Rule 138(10) of CGST Rules, 2017. The relevant dateshall mean the date on which the e-way bill has been generated and the period of validityshall be counted from the time at which the e-way bill has been generated and each dayshall be counted as twenty-four hours.
Q 31. Can the validity period of e-way bill be extended
Ans. In general No. However, Commissioner may extend the validity period only by wayof issuance of a notification for certain categories of goods which shall be specified later.Also, if under circumstances of an exceptional nature, the goods cannot be transportedwithin the validity period of the e-way bill, the transporter may generate another e-waybill after updating the details in Part B of FORM GST EWB-01.
Q 32. What is the validity period of consolidated e-way bill
Ans. A consolidated e-way bill has no separate validity and will be governed by theunderlying validity period of the individual e-way bills.
Q 33. Can a e-way bill be modified
Ans. No. Part-A of an e-way bill once generated, cannot be modified. However, Part-Bcan be updated as many times as the transport vehicle is changed within the overallvalidity period. The validity period is not changed when the Part-B is updated.
Q 34. Is it necessary to feed information and generate e-way bill electronically inthe common portal
Ans. Yes. The facility of generation and cancellation of e-way bill is also availablethrough SMS.
Q 35. What is EBN Who gives it
Ans. 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 thecommon portal. The common portal will generate the EBN.
Q 36. Whether e-way bill generated in one state is valid in another state
Ans. Yes it is valid throughout the country.
Q 37. What if one consignment, is transported in CKD/SKD condition in multipletransport vehicles
Ans. As per Rule 55(5) of the CGST Rules, 2017, in such cases, the supplier shall issue thecomplete invoice before dispatch of the first consignment and shall issue a delivery challanfor each of the subsequent consignments, giving reference of the invoice Each suchsubsequent consignment shall be accompanied by copies of the corresponding delivery
challan along with a duly certified copy of the invoice; and the original copy of the invoiceshall be sent along with the last consignment. Every consignment shall also beaccompanied with a separate e-way bill.
Q 38. Can a transport vehicle be intercepted
Ans. Yes, the Commissioner or an officer empowered by him in this behalf may authorisethe proper officer to intercept any conveyance to verify the e-way bill or the e-way billnumber in physical form for all inter-State and intra-State movement of goods.
Physical verification of a specific conveyance can also be carried out by any officer, onreceipt of specific information on evasion of tax, after obtaining necessary approval of theCommissioner or an officer authorised by him in this behalf.
Q 39. Are there any checks and balances on excessive use of power ofinterception of vehicles and inspection of goods
Ans. A summary report of every inspection of goods in transit shall be recorded onlineon the common portal by the proper officer in Part A of FORM GST EWB-03 withintwenty-four hours of inspection and the final report in Part B of FORM GST EWB-03 shallbe recorded within three days of such inspection.
Once physical verification of goods being transported on any conveyance has been doneduring transit at one place within the State or in any other State, no further physicalverification of the said conveyance shall be carried out again in the State, unless a specificinformation relating to evasion of tax is made available subsequently.
Where a vehicle has been intercepted and detained for a period exceeding thirty minutes,the transporter may upload the said information in FORM GST EWB-04 on the commonportal.
Q 40. What is the responsibility of transporters, owners or operators of godownor warehouse
Ans. As per section 35(2) of the CGST Act, 2017, every owner or operator of warehouseor godown or any other place used for storage of goods and every transporter, irrespectiveof whether he is a registered person or not, shall maintain records of the consigner,consignee and other relevant details of the goods in such manner as prescribed in rule 58of the CGST Rules, 2017.
Q 41. What has to be done by the transporter if consignee refuses to take goodsor rejects the goods
Ans. The transporter can get one more e-way bill generated with the help of supplier orrecipient by indicating supply as Sales Return and with relevant document details andreturn the goods to supplier.
Q 42. What are the documents to be carried by the person in charge of aconveyance while transporting goods
Ans. 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 aRadio Frequency Identification Device (RFID) embedded on to the conveyance in suchmanner as may be notified by the Commissioner.
Q 43. What are RFIDs
Ans. RFIDs are Radio Frequency Identification Device used for identification. TheCommissioner may require RFIDs to be embedded on to the conveyance in such manner asmay be notified. The Commissioner shall get RFID readers installed at places where theverification of movement of goods is required to be carried out and verification ofmovement of vehicles shall be done through such device readers where the e-way bill hasbeen mapped with the said device.
Q 44. Is it necessary that the e-way bill has to be mapped to a RFID device
Ans. It is optional. However, The Commissioner may, by notification, require a class oftransporters to obtain a unique Radio Frequency Identification Device and get the saiddevice embedded on to the conveyance and map the e-way bill to the Radio FrequencyIdentification Device prior to the movement of goods.
Q 45. Are there any special situations where e-way bill needs to be issued even ifthe value of the consignment is less than Rs. 50,000/-
Ans. As per the provisos to Rule 138(1) of CGST Rules, 2017, where goods are sent bya principal located in one State to a job worker located in any other State, the e-way billshall have to be generated by the principal irrespective of the value of the consignment.
Also, where handicraft goods are being transported from one State to another by a personwho has been exempted from the requirement of obtaining registration, the e-way billshall have to be generated by the said person irrespective of the value of the consignment.
Q 46. Can a tax payer update his business name, address, mobile number or emailid in the e-way bill system
Ans. No. EWB System will not allow tax payer to update these details directly. Thetaxpayer has to change these details at GST Common portal, from where it will be updatedin EWB system.
Q 47. What are the modes of e-way bill generation
Ans. The e-way bill can be generated through multiple modes viz the common portal fore-way bill or Using SMS based facility or Android App or Site-to-Site integration or GSP(Goods and Services Tax Suvidha Provider).
For using the SMS facility, a person has to register the mobile numbers through which hewants to generate the e-way bill on the e-way bill system.
For using Android App, the tax payer has to register the EMEI numbers of the mobilesthrough which he wants to generate the e-way bill on the e-way bill system.For site to site integration, the APIs of the e-way bill system have to be used for integratingthe system.
Q 48. What is the role of sub-users in e-way bill system How can sub-users beactivated
Ans. A taxpayer can create sub-users in the e-way bill system and assign specific roles tothem like generation of EWB or rejection or report generation activities based onrequirements. This helps the large firms with multi locations/ shifts to distribute work.
Q 49. Whether information submitted for e-way bill can be used for filing GSTReturns
Ans. The information furnished in the Part-A of E-way bill shall be made available to theregistered supplier on the common portal who may utilize the same for furnishing detailsin GSTR-1.
Q 50. Whether individuals while shifting their personal belongings will have togenerate E-way bill
Ans. No. Used personal and household effects are specifically exempted from therequirement of E-way Bill as explained in Q 8 above.
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Disclaimer:
The FAQs on E-Way Bill have been compiled by NACIN and are for training andacademic purposes only. The information is intended only to provide a generaloverview and is not intended to be treated as legal advice or opinion. For greater details,you are requested to refer to the respective CGST/SGST/UTGST/IGST Acts and Rules.
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