E-way bill

Introduction

The electronic way bill (E-way bill) is a compliance mechanism wherein the person causing the movement of goods is required to upload the relevant information about the movement of goods and the conveyance on the GST common portal. The purpose of the e-way bill is to track the movement of goods in accordance with the provisions of GST laws and to curb any tax evasion. Wherever there is a mismatch between the details furnished in the e-way bill and the actual details of the goods/conveyance, the GST Department may detain the goods/conveyance until the differential tax is paid by the person and may even proceed with the confiscation proceedings.

This document discusses the provisions relating to the e-way bill as given under the GST legislation.

1. About E-Way Bill under GST

Whenever there is a movement of goods involved, the GST law[1] requires[2] that the person-in-charge of the conveyance, who is carrying the consignment of goods must carry with him certain documents and devices. In this regard, the law provides a list of documents that are required to be carried at the time of the movement of goods which includes the e-way bill.

The provisions relating to the E-way bill as given under the GST legislation are discussed in this document in the below manner:

(a) Documents required to be carried at the time of movement of goods: The law requires the person in charge of a conveyance to carry a set of documents in physical form or in electronic form during the movement of goods. In this para, the provisions relating to the requirement to carry documents during the movement of the vehicle carrying goods is discussed in detail.

(b) Applicability of e-way bill under GST: Under the GST law, the e-way bill is required to be generated by the person causing the movement of goods in specified circumstances before the commencement of movement of goods. However, this general rule is subject to certain exceptions. In this para, the provisions relating to the requirement to generate the e-way bill are discussed.

(c) Manner of generating E-way bill under GST: The e-way bill is required to be generated in Form GST EWB-01 which consists of two parts i.e. Part A and Part B. The procedure to fill in and details which are required to be filled therein are discussed in this para.

(d) Inspection, detention and confiscation of goods in movement under GST: The proper officer under the GST law may carry out inspection of conveyance in movement and may conduct verification of goods or documents. The law empowers such a proper officer to detain, release and confiscate such goods or conveyance wherever necessary. In this regard, the law provides specific provisions which are discussed in this para.

(e) Procedure for registration on e-way bill portal: The e-way bill is required to be generated over the e-way bill portal and the person who is required to generate the e-way bill needs to obtain a separate enrolment for such a portal. The manner of obtaining the registration over the e-way bill portal is discussed in this para.

2. Documents required to be carried at the time of movement of goods

While moving the goods from one place to another through conveyance, the GST law mandates the person in charge of such conveyance to carry few documents.

The GST law provides[3] that the person in charge of a conveyance is required to carry the following documents for the movement of goods:

(a) Invoice or bill of supply ordelivery challan, as the case may be; and

(b) Bill of entry (in case of imported goods) and

(c) E-Way bill

  -   Physical copy of E-way Bill or

  -   E-way bill number in electronic form or

  -   E-way bill mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by commission (no notification is issued yet)

However, the requirement to carry E-way Bill in any of the above forms does not apply when the movement of goods is made through rail, air or vessel[4] . In other words, the person in charge of a rail, airplane or vessel is not require to carry E-way Bill/number for transporting the goods.

2.1. Requirement to carry copy of bill of entry in case of imported goods

In the case of imported goods, the person in charge of the conveyance is also required[5] to carry a copy of the bill of entry filed by the importer of such goods along with the e-way bill. The importer would be required to indicate the number and date of the bill of entry in Part A of the e-way bill.

2.2. QR Code with embedded IRN maybe produced electronically instead of physical copy of tax invoice

When the e-invoice is issued by the supplier as per the provisions[6] under the GST law, the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) in it may be produced[7] electronically in lieu of the physical copy of the tax invoice for the purpose of verification by the proper officer.

In this regard, the CBIC has also clarified[8] that there is no requirement to carry the physical copy of the tax invoice in cases where the e-invoice has been generated by the supplier and the production of the QR code having an embedded IRN electronically would suffice for verification by the proper officer.

2.3. Mapping of e-way bill to Radio Frequency Identification Device

The GST law provides[9] that the Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device. The said device would then be embedded onto the conveyance and the e-way bill would be mapped to the Radio Frequency Identification Device prior to the movement of goods. However, the given provision is not yet applicable as no notification has been issued in this regard.

2.4. Commissioner may require specified documents instead of e-way bill

The GST law provides that the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill:

(a) Tax invoice or bill of supply or bill of entry, or

(b) Delivery Challan, where the goods are transported for reasons other than by way of supply

2.5. List of documents to be carried for movement of goods

The list of documents required to be carried by the person in charge of conveyance is summarized as under:

3. Applicability of e-way bill under GST

As a general rule under the GST law, it is mandatory[10] to generate the e-way bill in cases whenever there is a movement of goods and where the value of the consignment of goods being transported is more than Rs. 50,000. However, in some specified cases, the requirement to generate the e-way bill has been exempted under the GST law.

Further, the law provides that the e-way bill is required to be generated by the consignor or consignee himself before the commencement of movement of goods, where the transportation is being done in own/hired conveyance or by railways by air or by vessel. Whereas, if the goods are handed over to a transporter for transportation by road, the transporter is required to generate the e-way bill.

Notably, the provisions relating to the applicability of the e-way bill for inter-state movement of goods would be governed by the CGST law, whereas, for intra-state movement of goods, the provisions laid down under the respective SGST law would be followed. In this regard, certain State specific exemptions from the requirement to generate the e-way bill are separately discussed in the document State-wise exemption from generation of e-way bill.

4. Manner of generating E-way bill under GST

The e-way bill is required to be filled in Form GST EWB-01 which is divided into two parts i.e. Part A and Part B. In Part A, the details relating to the supply and movement of goods are furnished. Once details in Part A of the e-way bill are furnished, a unique number is generated through which the details in Part B of the form can be updated. Part B of the form, where the transport details are furnished, helps in the generation of the e-way bill. The e-way bill number would be generated on the e-way bill portal only upon the successful furnishing of information in both Part A and Part B.

5. Inspection, detention and confiscation of goods in movement under GST

In the case of transportation of goods by road, an e-way bill is required to be generated before the commencement of the movement of the consignment. Further, the person in charge of a conveyance is required to carry such an e-way bill in physical form or in electronic form along with the invoice/bill of supply/delivery challan (as discussed in Para 2).

The law empowers the proper officer under GST to verify such documents, goods and conveyance in transit. Where the proper officer is of the opinion that any of the provisions under the GST law is not complied with, he may carry out detention, seizure, release and confiscation of goods or conveyances and can also impose a penalty.