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Everything to Know about Rules on E-way Bills in Q&A Form (Rule 138)

In this article, we will discuss complete details of E-Way Bills (Rule 138) in Q & A Form.


Question: When E-Way Bill is required to be be Generated?


As a general rule, Every Registered person need to generate E-Way Bill on the Portal before commencement of movement of goods who causes such movement of Consignment value exceeding fifty thousand rupees-

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,


Here, key words are Registered Person who initiate movement of Goods need to generate E-way Bill, Consignment Value (Not Taxable Value) and also includes movement of goods for the purpose other than supply.


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Question: How the Value of the Consignment will be computed?


The consignment value of goods shall be the value, determined in accordance with the provisions of section 15 (Section of Valuation), declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the CGST, SGST or UTGST, IGST and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.


For calculation of Value for E-Way Bill Requirement, Value of GST is also required to be included and Value of Exempted Goods is need to be excluded.


Question: When E-way Bill is compulsorily required even if Value is Less than Rs. 50,000


In following two cases:


Inter-State Transportation of Goods to the Job-Worker

Where goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment.


Inter-State Transportation of Handicraft Goods by Exempted Category of Persons

Where handicraft goods are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24 , the e-way bill shall be generated by the said person irrespective of the value of the consignment.


Question: When E-way Bill is not required even if Value is more than Rs. 50,000?


Some Important Categories are mentioned here (Complete List is Provided at the end of the Article)

  1. Goods Prescribed in the Annexure like Currency, Used personal and household effects etc.

  2. Where the goods are being transported by a Non-motorised conveyance.

  3. Exempted Goods except de-oiled cake.

  4. 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.

  5. Where the supply of goods being transported is treated as No supply under Schedule III of the Act like High Sea Sales etc.

  6. Where the goods being transported are exempt from tax under Notification No 7/2017-Central Tax(Rate) i.e. by CSD Canteens

  7. Where empty cargo containers are being transported

  8. Where the goods are being transported up to a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55.


Question: What are two Parts of the E-Way Bill ?


There are two Parts i.e. Part-A & Part-B



As a general Rule both Parts- A & B are to be filled by the Registered Persons who causes movement of Goods.


Further, without filling both Parts, E-way Bill will not be considered as valid E-way Bill.


Question: What are the Exceptions when Part-A (Not Part-B) of E-way Bill can be generated by person other than Registered Person who causes movement of Goods?


In following cases, Part-A can also be filled by below mentioned persons instead of Registered Person:


The transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01.


Where the goods to be transported are supplied through an ecommerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such ecommerce operator or courier agency.


Two Cases related to Job-Worker & Handicraft as discussed above.


Question: What are the Provisions related to generation of Part-B of the E-Way Bill ?


General Rule


Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.


Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of FORM GST EWB-01.


Note: Railway will not handover the Goods unless E-way bill is produced at the time of delivery of goods.


Note-2: The unique number generated after generation of Part-A of E-way bill shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01.


Exception to the General Rule (may be for the reason Registered Person does not know Vehicle Details at the time of handing over of the Goods to the Transporter)


Where the e-way bill is not generated as explained above, the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01. (In this case, Part-B will be prepared by the Transporter).


Question: When generation of Part-B of the E-Way Bill is not mandatory ?


Where the goods are transported for a distance of up to fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation (Not inter-state), the supplier or the recipient, or as the case may be, the transporter may Not furnish the details of conveyance in Part B of FORM GST EWB-01 .


Question: Whether E-way Bill can be generated even if Value is less than Rs. 50,000?


Yes, in case Registered Person or Transporter voluntary wants to generate E-way Bill, they can generate even if value of consignment is less than Rs. 50,000.


Question: What are Provisions regarding E-way Bill in case of Un-Registered Person ?


Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal. (It is not mandatory).


In this case it is to be noted that where Registered Persons is supplying Goods to the Un-registered Person at his home/place of business. In that case, E-way bill is mandatory for Registered Person for movement of goods from his place of business to the place of Un-Registered Person.


Further, where 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 the time of commencement of the movement of goods.


Question: What are the Provisions of E-Way Bill in case there is transfer of Goods from One Conveyance to Another


Where the goods are transferred from one conveyance to another, the consignor or the recipient, who has provided information in Part A of the FORM GST EWB-01 , or the transporter shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in Part B of FORM GST EWB-01 :


Provided that where the goods are transported for a distance of up to fifty kilometers within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of the conveyance may not be updated in the e-way bill.


Question: What are the Provisions regarding multiple consignment in Single Conveyance ?


Where multiple consignments are intended to be transported in one conveyance, after e-way bill has been generated by the individual Registered Person who causes movement of Goods having value more then Rs. 50,000), the transporter may (i.e. optional) indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him on the said common portal prior to the movement of goods.


Question: Can E-way Bill be Cancelled ?


Where an e-way bill has been generated under this rule , but goods are either not transported or are not transported as per the details furnished in the e-waybill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill.


However, an e-way bill cannot be cancelled if it has been verified in transit by the Department.


Question: What is the Validity of the E-Way Bill ?

Sl. No

Distance

Validity period

(1)

(2)

(3)

1

Up to 200 km

One day in cases other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship.

2

For every 200 km or part thereof thereafter

One additional day in cases other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship

3

Upto 20 km One day

One day in case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship

4

For every 20 km. or part thereof thereafter

One additional day in case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship.


Note: Under circumstances of an exceptional nature, including trans-shipment, the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period after updating the details in Part B of FORM GST EWB-01 , if required with in Eight Hours of E-Way Bill Expiry.


Question: What is the E-Way Bill Requirement for Transportation of Gold & Jewellery ?


As per Rule-138 (14), E-way Bill requirement is not there in case of Gold & Jewellery and other Precious Metals (S.NO. 4 & 5 of the Annexure). However, Rule 138F Permits the Commissioner of State GST in consultation with Chief Commissioner of the Centre to make it mandatory for generation of E-way Bills for such commodity in case of intra-state transportation where Value of such commodity is higher than Rs. 2 Lakhs or any higher limit as decided by the State GST Commissioner.


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Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. While due care has been taken by Fab Gyan in preparing this article, certain mistakes and omissions may creep in. The Fab Gyan or its Author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.







Complete List where E-way Bills are not required


(a) where the goods being transported are specified in Annexure;

(b) where the goods are being transported by a Non-motorised conveyance;

(c) where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an

inland container depot or a container freight station for clearance by Customs;

(d) in respect of movement of goods within such areas as are Notified under clause (d) of sub-rule (14) of rule 138 of the State or

Union territory Goods and Services Tax Rules in that particular State or Union territory;

(e) where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to Notification No

2/2017- Central tax (Rate) dated the 28th June,

2017 published in the Gazette of India, Extraordinary, Part II, Section 3 , Sub-section (i), vide number G.S.R 674 (E) dated the

28th June, 2017 as amended from time to time;

(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;

(g) where the supply of goods being transported is treated as No supply under Schedule III of the Act;

(h) where the goods are being transported-

(i) under customs bond from an inland container depot or a container freight station to a custom sport, airport, air cargo complex

and land customs station, or from one customs station or customs port to another customs station or customs port, or

(ii) under customs supervision or under customs seal;

(i) where the goods being transported are transit cargo from or to Nepal or Bhutan;

(j) where the goods being transported are exempt from tax under Notification No 7/2017-Central Tax(Rate) , dated 28th June

2017 published in the Gazette of India, Extraordinary, Part II, Section 3 , Sub-section (i), vide number G.S.R 679(E)dated the

28th June, 2017 as amended from time to time and Notification No 26/2017 Central Tax(Rate) , dated the 21st September,

2017 published in the Gazette of India, Extraordinary, Part II, Section 3 , Sub-section (i), vide number G.S.R 1181(E)dated the

21st September, 2017 as amended from time to time;

(k) any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee;

(l) where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods

by rail;

(m) where empty cargo containers are being transported; and

(n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor

to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the

condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55 .

5 [(o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.]


ANNEXURE [(See rule 138 (14)]

1. Liquefied petroleum gas for supply to household and Non domestic exempted category (NDEC) customers

2. Kerosene oil sold under PDS

3. Postal baggage transported by Department of Posts

4. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71)

5. Jewellery, goldsmiths' and silversmiths' wares and other articles (Chapter 71) 6 [excepting Imitation Jewellery (7117)]

6. Currency

7. Used personal and household effects

8. Coral, unworked (0508) and worked coral (9601)








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