Summary of e-Way Bill Rules

Inter-state transactions has accounted for a significant portion of GST revenue. In previous tax regimes, the transportation factor was used to channel unaccounted and uninvoiced stock of goods. GST, by introducing an eWay bill, has attempted to eliminate malpractices while also digitising the process so that real-time supervision can be carried out.

What is e-Way Bill?

A carrier’s eWay bill is a document that contains information and instructions about the shipment of a consignment of goods. The information includes the consignor and consignee’s names, the consignment’s origin, destination, and route. e-Way bills are a compliance mechanism in which the person causing the movement of goods uploads relevant information prior to the start of the movement of goods and generates e-way bills on the GST portal through a digital interface. In other words, e-way bills are electronic documents generated on the GST portal that document the movement of goods.

Quick Run-Through Rule 138

The provisions of the eWay bill are governed by Section 68 of the CGST Act, 2017, read in conjunction with Rule 138. A quick rundown of some interesting points about the eWay bill is as follows:

1. e-Way bill is generated electronically in Form GST EWB-01 on the common portal
2. Every registered person who causes movement of goods of consignment value exceeding Rs. 50,000-
   a. In relation to a supply; or
   b. For reasons other than supply; or
   c. Due to inward supply from an unregistered person.
3. e-Way Bill on the common portal has two parts
   a. EWB-01 PART A (Information about Goods)
   b. EWB-01 PART B (Filled by Transporter)
4. When goods are transported by railways, there is no requirement to carry an e-Way bill, but railways must carry an invoice, delivery challan, or bill of supply, as the case may be, along with the goods. Furthermore, at the time of delivery of the goods, an e-Way bill generated for the movement must be produced. Railways must not deliver goods unless the required e-Way bill is presented at the time of delivery.
5. The e-Way bill generated as per rule 138, will be valid in EVERY state.
6. Consolidation e-Way Bill can be issued when GTA or transporter has multiple consignments on the same trip on the same vehicle.
7. When an e-Way bill is generated under the e-Way rules, but the goods are not transported or are not transported according to the details provided in the e-Way bill, the e-Way bill may be cancelled electronically on the common portal within 24 hours of its generation. Provided, however, that an e-Way bill cannot be cancelled if it has been verified in transit in accordance with Rule 138B.
8. Validity of e-Way Bill

Sr. No	Distance	Validity Period
1.	Up to 200 Km	1 Day (other over-dimensional cargo or multimodal shipment in which one leg involves transport by ship.)
2.	200 Km or more	1 Day + 1 Day for every 200 Km (other over-dimensional cargo or multimodal shipment in which one leg involves transport by ship.)
3.	Up to 20 Km	1 Day (In case of over-dimensional cargo or multimodal shipment in which one leg involves transport by ship.)
4.	20 Km or More	1 Day+ 1 Day for 20 Km (In case of over-dimensional cargo or multimodal shipment in which one leg involves transport by ship.)

Rule 138A: Documents and devices to be carried by a person in charge of a conveyance

1. The person in charge of a conveyance must carry the following items:

a. the invoice, bill of supply, or delivery challan, as applicable; and
b. A physical copy of the e-Way bill, or the e-Way bill number in electronic form, is mapped to a Radio frequency identification Device embedded on the conveyance in the manner prescribed by the Commissioner.

However, nothing in sub-rule (b) applies if goods are transported by rail, air, or vessel. Furthermore, the person in charge of a conveyance must carry a copy of the bill of entry filed by the importer of such goods, as well as the number and date of the bill of entry in Part A of FORM GST EWB-01 in the case of imported goods.

2. The information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
3. If the invoice is issued in the prescribed manner. In lieu of a physical copy of the tax invoice, the Quick Response (QR) code with an embedded Invoice Reference Number (IRN) may be produced electronically for verification by the proper officer.

Rule 138B: Verification of Documents and Conveyance

The commissioner or an officer acting on his behalf may direct the proper officer to intercept any conveyance in order to verify the e-Way bill in physical or electronic form for all interstate and intrastate movement of goods. The commissioner shall install RFI Device readers at locations where goods movement verification is required, and vehicle movement verification shall be done through such device readers where the e-way bill has been mapped with said device.

The physical verification of conveyance shall be performed by the proper officer, as authorized by the commissioner or an officer delegated by him in this capacity. Provided, however, that upon receipt of specific information on tax evasion, physical verification of a specific conveyance may also be carried out by any other officer with the commissioner’s or an officer authorized by him in this regard’s approval.

Rule 138C: Inspection and Verification of Goods

1. A summary report of every inspection of goods in transit must be recorded online by the proper officer in Part A of FORM GST EWB-03 within 24 hours of the inspection, and the final report must be recorded in Part B of FORM GST EWB-03 within 3 days of the inspection. If necessary, the Commissioner can grant an extension of three days.
2. Where physical verification of goods being transported on any conveyance has been performed during transit at one location within the state or in another state, no further physical verification of the said conveyance shall be performed in the state unless specific information relating to tax evasion is made available.

Rule 138D: Facility for uploading information regarding detention of vehicle

If a vehicle is intercepted and detained for more than 30 minutes, the transporter must upload the information in FORM GST EWB-04 to the common portal.

Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01

No person shall be allowed to furnish the information in Part-A of FORM GST EWB-01 in respect of a registered person whether as a supplier or a recipient, who:-

1. Being a person paying tax under section 10, but failing to furnish the statement in FORM GST CMP-08 for two consecutive quarters, or;
2. Being a person other than a person complying with section 10 and failing to furnish the returns for a consecutive period of two tax periods, or;
3. Being a person other than a person specified in clause (a) failing to furnish the statement of outward supplies for any two months or a quarter, as the case may be.
4. Being a person whose registration is cancelled under Rule 21A (1)/(2)/(2A)

Provided, however, that upon receipt of an application from a registered person in FORM GST EWB -05, if sufficient cause is shown and the reason is recorded in writing, the commissioner may, by order in FORM GST-EWB-06, allow furnishing of the said information in PART-A of GST EWB-01, subject to such conditions and restrictions as he may specify.

As a result, the e-Way bill concept has been designed to limit potential revenue threats while also making the necessary efforts to bring the physical channel online. The advancements made in the rules, regulations, and technological fronts have been spectacular and will undoubtedly benefit the industry as a whole.