Q1. Whether EWB may be generated if the consignment value is less than Rs. 50,000/-?
Ans. Yes, the registered person or the transporter, as the case may be, may generate EWB voluntarily, even if the value of consignment is less than Rs. 50,000/-.
However, Proviso 3 and 4 to Rule 138(1) of the CGST Rules 2017 mandatorily requires a registered person to generate an EWB irrespective of the value of consignment where:
— the goods are to be sent by the principal located in one State or Union Territory to a job worker in other State or Union Territory.
— 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 24of the CGST Act.
Q2. What is meaning of the term consignment value to determine the threshold of Rs.50,000/- and whether the same needs to be computed with taxes or without taxes?
Ans. As per Exp. 2 to Rule 138(1), the term “Consignment Value”, means value determined as per section 15 of the CGST Act as mentioned on the invoice, bill of supply or delivery challan as the case may be including the applicable tax thereon. However, such consignment value shall exclude the value of exempted supply, where the invoice is issued in respect of both exempt and taxable supply of goods.
Q3. Who has been casted with the ultimate responsibility of generating EWBs? Consignor, consignee or the transporter?
Ans. The primary responsibility to generate EWB shall be of the registered person who causes the movement of goods, i.e. the consignor or the consignee, as the case may be. However, if such consignor or consignee doesn’t generate the EWB, it may be generated by transporter as well, if authorized by the registered person.
Also, in case of supply of goods by an unregistered person to registered person, the liability to generate EWB is on the recipient.
Q4. How EWB needs to be generated in case of supply of goods by an unregistered person to a registered person?
Ans. If the recipient registered person is known at the time of commencement of movement of goods, then as per first explanation to Rule 138(3) it shall be deemed that movement has been caused by recipient and accordingly liability to generate EWB shall be of recipient.
However, if movement is caused by unregistered person and at the time of commencement of movement of goods the recipient is not known as per second proviso to Rule 138(3), it is optional to generate EWB.
Q5. Whether EWB would be required, if transportation is done in one’s own vehicle or through a public transport?
Ans. Yes, as per Rule 138 (2) under Notification No. 12/2018, it has been provided that EWB shall be required to be generated, in case the goods are transported by consignor or consignee in his own vehicle or in a hired one or a public conveyance, by road. In such case, the registered person causing the movement of goods may raise the EWB after furnishing the vehicle no. in Part B of FORM GST EWB – 01 if the value of goods being transported is more than Rs.50,000/- or Rs. 1,00,000/- as the case may be.
Q6. Is it compulsory to raise EWB in case of transportation of goods by principal to job worker irrespective of the value of consignment?
Ans. Proviso 3rd to Rule 138 (1) of the CGST Rules 2017 provides that, where goods are sent by principal located in one State or Union Territory to job worker located in another State or Union Territory, EWB shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment.
This indicates that there is compulsory requirement to generate EWB in case of interState movement of goods for job work purpose. However, there is no such condition in case of goods sent for job work in an intra-State movement. Hence, for sending goods to job worker within State, EWB is required to be generated only if the value exceeds the threshold prescribed in respective State.
Q7. What is the treatment of EWB for Stock Transfer – Inter-State—Intra-State transfers?
Ans. EWB is required to be generated for every movement of goods either in relation to supply or for purpose other than supply. Therefore, EWB is to be generated for every Inter and Intra-State transfers, where the value of consignment exceeds the Rs.50,000, or Rs. 1,00,000 as the case may be, in case of inter State movement or the threshold prescribed in each State in respect of intra State movement. However, under Rule 138(14) (d), States & UT’s are authorized to dispense with requirement of EWB on movement of goods within such area as may be notified.
Q8. Whether an EWB is required to be generated for movement of goods from one unit of the company to another unit through own vehicle located within 10km?
Ans. Yes, EWB is required to be generated even in case of movement of goods within 10km (Subject to relaxation in Rule 138(14)(d) for movement of goods in notified areas).
However, it is to be noted that the exemption from generating the EWB is granted only in such case where the goods are to be transported up to a distance of 20Kms. from the place of business of the consignor to a weighment bridge or from weighbridge back to the place of such consignor. Further such exemption is subject to a condition that such movement is accompanied by a delivery challan.
Furthermore, such exemption needs to be differentiated with the relaxation provided under Proviso to Rule 138(3), which is for updating the Part-B (vehicle details) of the FORM GST EWB-01. The relaxation is given only in cases, where the goods are to be transported from the place of business of consignor to the business of transporter up to 50kms for further movement of such goods.
Therefore, in all other cases, where goods are being transported in motorized vehicle EWB needs to be generated even if the distance to be covered is less than 10 km.
Q9. What is the liability of generation of EWB in case of transportation of goods through e-commerce?
Ans. Generally, in case of an E-Commerce business model, the logistics is handled by an independent third party logistic service provider. So, in such a case 4 parties are involved in the transaction (seller, buyer, logistic service provider and E-Commerce operator). Therefore, in such cases where the goods are to be transported through an e-commerce operator, on an authorization from consignor, Part A of the EWB may be furnished by the E-Commerce operator and Part B of the EWB may be furnished either by the E-Commerce operator or by the third party logistic service provider.
Q10. How many times can Part-B or Vehicle number be updated for an EWB?
Ans. The user can update Part-B (Vehicle details) for each change in the vehicle or mode of transport used in the course of movement of consignment up to the destination point. However, the updating should be done within overall validity period of EWB. There is no upper cap on the number of updation of vehicle in Part B.
Q11. What has to be done, if the vehicle number has to be changed for the consolidated EWB (“CEWB”)?
Ans. There is an option available under the ‘Consolidated EWB’ menu as ‘regenerate CEWB’. This option allows changing the vehicle number to existing CEWB, without changing the EWBs and generates the new CEWB, which has to be carried with new vehicle. Old will become invalid for use.
Q12. Can the ‘CEWB’ have the goods/ e-way bills which are going to be delivered before reaching the destination defined for CEWB?
Ans. Yes, the CEWB can have the goods or e-way bills which will be delivered on the way of the CEWB destination. That is, if the CEWB is generated with 10 EWBs to move to destination X, then the transporter can deliver 3 consignments concerned to 3 EWBs on the way out of these 10 and move with remaining 7 to the destination X.
Q13. For the purpose of calculation of distance and validity, does it needs to be checked from the date and time of generation of individual EWB or whether the same needs to be calculated from the time of generation of CEWB?
Ans. CEWB is like a trip sheet and it contains details of different EWB which are moving towards one direction, and these e-way bills will have different validity periods. Hence, consolidated EWB is not having any independent validity period. However, individual e-way bills in the consolidated EWB should reach the destination as per its validity period.
It is also worth noting that the date of invoice/delivery challan is not relevant for determining the beginning time of EWB.
Q14. Whether any other document needs to be provided to the transporter in addition to EWB, for movement of goods?
Ans. In accordance with Rule 55A read with Rule 138A of the CGST Rules, the person incharge of conveyance shall carry
— Tax Invoice or Delivery Challan or Bill of Supply, as the case may be; and
— a copy of the EWB in physical form or the EWB number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner:
EWB is an additional document and not a substitute for Tax Invoice, delivery challan or any other prescribed document for the said transaction. Further Circular 41/2018- GST dated 13.04.2018 has clarified that EWB number can be in SMS form or written on invoice/Delivery Challan or any other documents carried along with transportation of goods. There is no need to carry physical EWB form.
Q15. Whether EWB is required to be generated for movement of exempted goods also?
Ans. As per explanation 2 to Rule 138(1) EWB is not required to be generated for movement of goods covered under Notification No. 2/2017-Central Tax (Rate) dated June 28,2017 (including any amendments made to such notification from time to time). This Notification covers all exempted categories of goods. Hence, there is no need to generate EWB when a person is causing movement of exempted category of goods except de-oiled cake. In addition to such exempted goods, EWB is not required for following goods:
— Non-GST goods i.e. alcoholic liquor for human consumption, petroleum crude, high speed diesel oil, motor spirit, natural gas, aviation turbine fuel,- Goods being transported are not considered as supply under Schedule III of the CGSTAct,2017 (“the CGST Act”)
— Goods covered under Annexure to Rule 138 i.e. LPG, Kerosene, Postal baggage, jewellery, precious metals, stones, currency, used and personal household effects etc.
Q16. In case any information is wrongly submitted in EWB. Can the EWB be modified or edited?
Ans. The EWB once generated cannot be edited or modified except Part-B of FORM GST EWB-01. In such a situation, EWB generated with wrong information has to be cancelled and should be generated afresh again. The cancellation is required to be done within twenty-four hours of generation.
Q17. Can the EWB be deleted?
Ans. The EWB once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of its generation. If it has been verified by any proper officer within 24 hours, then it cannot be cancelled. Further, EWB can be cancelled if, either goods are not transported or are not transported as per the details furnished in the EWB. A recipient has right to cancel/ reject the EWB within 72 hours of its generation or actual receipt of goods, whichever is earlier. Once the time limit of 72 hours elapses, the E-way bill may not be cancelled by either parties
Q18. Whether EWB needs to be generated for sales returns, rejection etc.?
Ans. Yes, EWB needs to be generated for any movement of goods including sales return and sales rejection etc. It may be noted that, in relation to sales returns, EWB can be generated in following ways:
- Where the goods are returned on tax invoice: Where the goods are returned back from the customer on tax invoice, EWB shall be generated by the customer as outward movement of goods for the purpose of supply.
- Where the goods are returned back on credit note: In case of return of goods based on credit note, there is necessity of delivery challan accompanying the goods. However, EWB cannot be generated based on credit note as the field of document type will be freeze sto delivery challan in EWB portal. Therefore, in addition to credit note, delivery challan need to be issued and EWB shall be generated on the basis of such delivery challan giving reference to “Sale Returns” as the reason for inward movement of goods. It is suggested to mention on the delivery challan that the goods are being moved on account of sales return with corresponding credit note number
Q19. Whether validity of EWB starts from update of Vehicle number or even on update of Transporter ID?
Ans. The EWB is considered valid for movement of goods when the details related to vehicle number is furnished in Part B of FORM GST EWB-01. Therefore, the validity of EWB will start from the date when the vehicle number will be updated in such Form, not merely on updating Transporter ID. It is to be noted that, unique EWB number once generated shall remain valid only for a period of 15 days for updating Vehicle No. in Part-B of FORM EWB-01.
Q20. Whether separate registration is required for transporters to get transporter ID, even though they are registered under GST and have a valid GSTIN. In other words, do all transporters need to get TRAN ID?
Ans. Every person registered under GST Act shall be required to get himself registered or enrolled at EWB Portal. It is only after getting himself enrolled at the portal, the transporter would come to know about the e-way bills assigned to him which would further let him update the details of vehicle in Part-B of the FORM.
Q21. If the transporter is unregistered, then what is the procedure to get registered on EWB portal?
Ans. It is not mandatory for a transporter to get registered under GST law. However, every unregistered transporter engaged in movement of goods shall get himself registered at EWB portal, since the option of updation of vehicle details and assignment of EWB to other transporter would be available to the transporter. For the purpose of such registration, transporter shall click on “Enrolment for transporter” link at the common portal http://ewaybillgst.gov.in. After clicking the link, the portal shall direct him to a page where he shall be required to furnish his business details after which a unique TRANS ID will be issued to him. Therefore, transporter on the basis of such TRANS ID can generate EWB.
Q22. Whether GSTIN of registered Transporter could be updated in “Transporter ID” and by updating GSTIN, information to update vehicle details will be transmitted to the transporter or it requires mandatorily “Transporter ID”?
Ans. Transporter ID is required to be taken only in cases where the transporter is not registered under GST Law. When the transporter is registered under GST and has valid GSTIN, the consignor needs to mention its GSTIN in the “Transporter ID” column. Where transporter is not registered, the consignor has to mention the “Transporter ID” of such transporter.
Q23. Can we generate EWB from a location (i.e. From Address) which is not covered under the registration certificate?
Ans. Part A of EWB has a column to mention the “place of dispatch”. The address from where the movement of goods is commencing needs to be mentioned there. This file is different from the “Bill from” place which indicates that the movement may be commenced from the unregistered place also. However, it is to be noted that if such a place of dispatch falls within the definition of “place of business” as per GST Act from where supply is taking place, it should be registered as an additional place of business in the registration certificate of the concerned State.
Q24. In Export Transactions to Nepal – a requirement of E way bill till destination or till the Port/ custom clearance?
Ans. There is no need to generate EWB in case goods being transported are transit cargo from or to Nepal. In other cases, also, there is no need to generate EWB where goods are being transported under Customs Bond from an inland container depot (‘ICD’) or container freight station (‘CFS’) to port or under customs supervision or customs seal. Hence, in the case of export to Nepal EWB has to be generated only till the port/customs clearance where customs examination is done.
Q25. In the case of High Sea Sale Transactions – Whether EWB is required?
Ans. Since High sea sale transactions fall within the purview of Schedule III to the CGST Act, there is no need to generate EWB in terms of Rule 138(14)(g) of CGST Rules. When the ultimate buyer files the bill of entry, he is required to generate EWB for the movement of goods from port to his place of business.
Q26. From Customs port to warehouse – Whether EWB is required? If yes, on what basis?
Ans. EWB is required to be generated for every movement of goods. Therefore, where the goods are to be transported from the port to the warehouse, the EWB can be generated against “Bill of Entry” as “Inward supply” from “URP” (unregistered person) and the place of the supplier shall be selected as “other countries” from the drop-down list. Further, no EWB required in case of movement from port to ICD/CFS for clearance by customs in terms of Rule 138(14)(c) of CGST Rules.
Q27. Whether EWB is required to be generated for the movement of goods between CFS/ICD to port in the course of importation and exportation of goods?
Ans. Rule 138(14) of the CGST Rules 2018, provides that no EWB is required to be generated in respect of:
- Movement of goods from the port, airport, air cargo complex and land customs station to an ICD or a CFS for clearance by Customs in the course of importation.
- where the goods are being transported—
- under customs bond from an ICD or a CFS to a customs port, airport, air cargo complex, and land customs station, or from one customs station or customs port to another customs station or customs port, or
- 2) under customs supervision or under customs seal
Therefore, EWB is not required for the movement of goods between CFS/ICD to port or vice versa in the course of importation and exportation of goods.
Q28. Whether multiple invoices can be clubbed in one E way bill? If yes, then to what extent?
Ans. The value of goods determined in the invoice shall be regarded as the value of the consignment, on the basis of which it is decided whether the consignor or consignee is required to generate EWB or not. Therefore, a separate EWB is required to be generated for every individual invoice where the value of the corresponding consignment exceeds Rs.50,000.
Q29. If goods are supplied in the same truck, whether EWB would have to be generated even if the value of each invoice individually is less than the threshold limit of Rs.50,000/- but overall it crosses Rs.50,000/-?
Ans. Rule 138 (7) of the CGST Rules provides that if consignor or consignee, in case of inter-State supply have not generated the EWB and aggregate of consignment value of goods carried in the conveyance is more than Rs. 50,000/-, the transporter has to generate EWB based on the documents (invoice, bill of supply, delivery challan, as the case may be). Further, the transporter may generate CEWB on the basis of multiple separate EWB generated. However, the conditions to raise EWB in this manner are not applicable to the railway, air, and vessel.
However, it may be noted that till the time Rule 138 (7) has not been notified. So EWB in such circumstances shall be required to be generated only after Rule 138(7) gets notified.
Q30. If the goods are taken from one State to another for the purpose of display in the exhibition, whether EWB is required to be generated?
Ans. EWB would be required to be generated, where the value of the consignment exceeds Rs.50,000/- There is separate subheading that has the specific reference of exhibition/display for the generation of EWB.
Q31. Where the goods are transported from mines to a factory, the value of goods and quantity is not known precisely. How to generate EWB in such cases?
Ans. EWB is required to be generated for every movement of goods, exceeding Rs.50,000/ in case of inter-State or prescribed threshold in case of Intra State movement. In such a situation, the goods may be sent to the factory by raising delivery challan with approximate values and the EWB needs to be generated for such movement.
Q32. How to generate the EWB in case goods are to be moved to a weighbridge situated outside the factory and invoice cannot be issued unless goods are weighed?
Ans. EWB is not required to be generated where the goods are to be transported up to a distance of 20kms for the purpose of weighment from the place of business of consignor to a weighbridge, or, from the weighbridge back to the place of the consignor. However, such movement should be along with the delivery challan to be covered under the relaxation of EWB generation.
Q33. In case of accident to the vehicle when the goods are in transit– what shall be the status of EWB?
Ans. If an accident happens on the road and vehicle is required to be changed, the transporter/registered person who has furnished details in Part A has to change the details of the vehicle in Part B of the EWB. The EWB issued earlier shall continue to be valid until the expiry of the validity period.
If the validity of EWB is expired due to accident of vehicle, then it could be said to be falling within circumstances of exceptional nature and transporter may extend the validity period of EWB.
Q34. Normally, it happens that the goods are transported from the place of the supplier to the transporter’s hub where these are sorted out based on the destination and goods are loaded on the vehicle for a single destination. This process could take 5-7 days at the transporter’s warehouse and the validity of EWB may expire during this period. How to take care of such a situation?
EWB rules have not specifically addressed these natures of practical scenarios, where the goods are to be delivered by transporter after the period of expiry. However, relaxation has been provided by the government that, if the distance of transporter’s hub is less than 50 KM from the place of business of consignor, then Part B of the EWB may not be required to be updated for such movement. Hence, in such cases, the goods may be moved from the place of removal to the transporter’s place without furnishing vehicles details in “Part B”. Once the vehicle details are known to the transporter, he may update the vehicle number in Part B of the EWB. But such Updation has to be within 15 days from the date of generation of “Part A” of EWB. It is important to note that the validity of the EWB starts only upon the updation of vehicle number for the first time by the supplier/recipient or by the transporter in Part B of the e-way bill and submission thereof. In case there is a distance of more than 50 KM between the place of removal and transporter’s warehouse, complete EWB has to be sent on the first day including vehicle number in Part B.
Q35. What happens if EWB is generated but no movement takes place and if EWB is not canceled?
Ans. In case EWB is generated but no movement of goods took place, it may be canceled within 24 hours from the time of its generation. However, if the same is not canceled within 24 hours, then the system would not allow the cancellation by the consignor. In such a situation, one can request the recipient to reject the EWB at his end in the common portal within 72 hours of its generation. However, if the time period for rejection of 72 hours also lapses then no mechanism is provided in the rules. Therefore, it is very important that all EWBs that are not supported by proper movement of goods or are invalid or wrongly generated must be immediately canceled.
Q36. Whether EWB has to be generated immediately at the time of the generation of the raising of invoice or there could be a time gap between two documents?
Ans. EWB is required to be generated before the commencement of the movement of goods. There is no time limit prescribed within which it has to be generated from the date/time of the invoice. Hence, there could be a gap (even in a number of days) between date/time of invoice and time of generation of EWB. However, once “Part A” of EWB has been generated, the details of the vehicle have to be filled in in Part B within 15 days from the date of filing of “Part A”. This time limit has to be kept in mind especially in cases where goods are moved in the part truck load where goods are aggregated in the warehouse of the transporter and subsequently dispatched. Further, no EWB can be generated in case of the future-dated documents.
Q37. A dealer of the car transports the unregistered vehicle from his warehouse to his showroom for display and sale to the customer. How should EWB be generated?
Ans. EWB has to be generated for movement of all goods unless it is covered in the exempted category of lists. The vehicle itself is covered within the definition of goods. Hence, EWB has to be generated when a new vehicle is moved from the warehouse to the showroom for sale to customers. However, in case the new vehicle has not been assigned RTO number, there could be a problem in generating Part B of the EWB. This has to be suitably addressed. However, the government has provided that even temporary numbers issued by the authority shall be a valid entry for vehicle number and should be reported as under:-
Example- For Temp RC vehicle – TRKA01000002
Q38. How GSTR-1 will be auto-populated in case of job work. In the case of job work only services charges received by job workers. How will GSTR-1 be reconciled?
Ans. In a case where goods are transported by job worker, the EWB will be generated on the basis of Delivery Challan and not on the basis of tax invoice issued by job worker for job work charges. The value of goods moved on the basis of delivery challan is not to be reported in GSTR-1 and neither there is mention of Tax Invoice issued by job worker for job work charges in EWB, no data would be auto-populated in the GSTR-1 of the job worker
Q39. What happens when there is a change of Transporter Company and EWB is assigned to transporter A and he hands over goods after some movement to transporter B?
Ans. Sub-rule (5A) has been inserted under Rule 138 of CGST Rules 2017, which provides that the consignor, consignee or the transporter may assign the EWB number to another registered or enrolled transporter for updating the information in Part-B of FORM GST EWB-01 for further movement of consignment.
This sub-rule can be analyzed in two parts –
- Assignment before updation of Vehicle details in Part B: EWay bill can be assigned to another transporter either by the person who furnished Part A or the Transporter.
- Assignment after updation of vehicle details in Part B: Where Part B of the vehicle has been updated by the first transporter but there is a change in the transporter in the course of the journey, the first transporter may assign the e-way bill to the second transporter. In this case, the person who furnished Part A [consignor or consignee] cannot assign the e-way bill to the second transporter.
Q40. If transporter name, GR Number and vehicle number are updated in the portal without transporter ID and subsequently due to breakdown of the vehicle, we are compelled to hire different transporter for subsequent transit, how to change transporter name & GR details because the provision is made only for the change of vehicle number?
Ans. Once E-way bill is completely generated, it cannot be edited or amended. The registered person who has furnished the details in Part A of the EWB can assign the e-way bill to the second transporter only when the vehicle details are not updated by the first transporter. Where the vehicle details are already declared in the e-way bill in Part-B, the e-way bill cannot be assigned to another transporter either by the consignor or the consignee. In the absence of transporter ID, the transporter cannot update the vehicle details or assign the e-way bill to another transporter. Hence, it is suggested to always mention the Transporter ID to avoid such unwarranted consequences.
If the breakdown is within 24 hours of making of EWB, the person who has furnished the details in Part A of the EWB can cancel the e-way bill within 24 hours of the generation of e-way bill before the movement of the goods is commenced as the goods would not be moved in accordance with the details furnished in the e-way bill and generate another e-way bill and furnish the correct details in the e-way bill. The system may accept the same document number for the generation of the new e-way bill as the old e-way bill is canceled.
Q41. In the case of multimodal transport, where for the first mile it is required to generate an EWB for road, the second mile by train and last-mile by road. These transporters could be the same service providers or different service providers. How to generate an EWB in this situation?
Ans. Where the EWB is generated and goods are to be transported from one conveyance to the other in course of transit, the transporter causing further movement of goods shall be required to update its details in Part – B of the EWB before the movement of such goods commences. Therefore, even in case of multi-modal transport initially, EWB must be generated giving the details of the vehicle carrying the goods by road. Once the goods are unloaded from this vehicle and loaded on the train, part B of EWB needs to be updated. Upon final transit of goods from rail to truck at last mile, Part B must be further updated with the details of the vehicle carrying the goods for final delivery. Where the transportation is being done by more than one transporter, then the first transporter is required to assign the e-way bill to the second transporter and a similar procedure is required to be followed for each subsequent change in the transporter.
Q42. What if there is a change in the ownership of the goods in the course of transportation of goods from one place to another. What shall be the validity of earlier EWB?
Ans. In such transactions, the second party (i.e. the original buyer) would have to generate a fresh EWB for sale made to third-party (i.e. ultimate buyer) in the course of transit. The e-way bill should be generated from the place where the movement of goods is diverted to the place of third-party giving reference to the sale invoice issued by the second party to the third party. The e-way bill should be generated under the transaction type “Bill from Dispatch from” on the portal as the goods are not dispatched from the place of business of the second party.
In such cases, the first party (i.e., the original supplier) might be required to cancel the first e-way bill, as the goods are not being moved as per the details mentioned in the first e-way bill if the time limit of 24 hours has not elapsed.
The details of the above movements may be intimated to the jurisdictional GST range officer along with first and the second e-way bills, invoices issued by the original supplier and the original recipient and these documents would be required to carried by the transporter along with the consignment.
However, where the goods are actually delivered to the original buyer, then generating a fresh e-way bill by the second party for the sale of goods to the third party is not required as there is only one movement of goods.
Q43. Many times, goods are transported through a goods transport operator who will not be registered under GST, does not issue any consignment note and also does not issue any transport document or LR?
Ans. In respect of the transport of goods by road, Transport Document is not a mandatory field for the purpose of the generation of EWB. A person may furnish other mandatory details like “Mode of transport”, “Transport ID” and “Vehicle No.” and can generate the EWB. Therefore, in case of transportation of goods through goods transport operator the person causing the movement of goods himself has to update Part A and also provide vehicle no. in part B and accordingly EWB needs to be generated. Also, if such an operator takes registration and obtains TRAN ID, then EWB can be raised the same as in the case movement done through any other registered transporters.
Q44. Whether the EWB system is applicable even for the movement of goods as a courier?
Ans. Yes. In case of movement of goods through courier, EWB may be generated either by the consignor of goods or by the courier agency, based on authorization by the consignor to such courier agency to generate EWB.
Q45. Can Part-B entry be assigned to another transporter by authorized transporter?
Ans. The details in Part-B can be entered by the transporter assigned in the EWB or generator himself. Rule 138 (5A) provides that the transporter, may assign the EWB number to another registered or enrolled transporter for updating the information in Part B of FORM GST EWB-01 for further movement of the consignment by the second transporter. The assigned transporter can re-assign the same to some other transporter to update Part-B on the EWB. Hence, where goods are shifted in the course of movement from one vehicle to another vehicle, part B may be updated by the first transporter or by subsequent transporters if such Part is assigned to him.
Q46. How to generate the EWB, if the goods of one invoice are being moved in multiple vehicles simultaneously? How the EWB be processed where the details of subsequent vehicles are not known at the time of generation of EWB? Whether the user can continue the earlier practice?
Ans. The portal has come up with new options in relation to the transportation of goods pertaining to a single invoice in multiple vehicles. For e.g. an EWB is generated and needs to be moved from A to C. Here, the consignment moves from A to B via Rail or bigger vehicle. However, it is not possible to move the consignment from B to C in the same mode of transportation due to the unavailability of that mode or may be due to the hilly region where big vehicles cannot be used. In such cases, the consignment needs to be moved in multiple smaller vehicles. Steps for opting multi-vehicle option for EWB:
- Generate the EWB normally with source and destination as per the document/invoice.
- At the time of transshipment, choose the ‘Change to Multi-vehicle’ option and update the EWB for multi-vehicle movement. (Here, the total quantity of the consignment and movement from and to place for the multiple vehicles requirement has to be entered).
- Now, when the consignment has been loaded to the smaller vehicle, update the ‘Part-B’ of the EWB with the vehicle number, along with the quantity loaded, and move the consignment.
- Step No 3 may be repeated until the total quantity is loaded and moved. The system will not allow the quantity to be shipped in multiple vehicles more than what has been declared while marking the EWB for multi-vehicle
In some cases, the goods are first transported in big vehicles and are subsequently shifted into several small vehicles the details of which are not known to the user at the time of generation of EWB. In such cases, the user may still generate the EWB normally and can switch to multiple vehicles as and when required during the transit. Vehicle no. will be updated accordingly.
However, the above option might not be used by the user for the movement of goods in multiple vehicles in regular courses. The option of the “Change to multi-vehicle” appears to be applicable only in the cases of transshipment where the movement of goods cannot be done in the same vehicle.
Q47. What if the same invoice contains both categories of goods i.e. ones exempted for the purpose of EWBs and taxable, then whether EWB needs to be generated?
Ans. An EWB is to be generated in cases where the movement of goods is caused were consignment value exceeds fifty thousand rupees. It is to be noted that the explanation to the Rule 138(1) provides that consignment value for the purpose of EWB shall be the value, determined in accordance with the provisions of Section 15, declared in the invoice or delivery challan or bill of supply as the case may be. However, it shall exclude the value of exempt supply where the invoice is issued in respect of both exempted and taxable supply of goods. Therefore, the value of taxable goods only shall be considered for the purpose of consignment value.
However, the e-way bill needs to be generated for the movement of de-oiled cake even if it is exempted under GST and the value of de-oiled cake is required to be included while generating the e-way bill.
Further, 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.
Q48. What is the procedure to transport semi-knocked down or completely knocked down goods or for the movement of goods in lots or installments?
Ans. Where the goods are being transported in a semi-knocked down or completely knocked down condition or in lots or installments:
- the supplier shall issue the complete invoice before dispatch of the first consignment;
- the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
- each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice;
[The value and quantity of the goods being moved in a particular vehicle should be mentioned in the delivery challan issued for the particular vehicle along with the tax rate and tax amounts as applicable to the value of goods moved in the vehicle]
- the original copy of the invoice shall be sent along with the last consignment
Where the goods are being transported in a semi-knocked down or completely knocked down condition then the E-Way bill has to be generated for movement of each consignment against the copy of the original invoice and delivery challan. EWB for each vehicle should be generated for each vehicle based on the delivery vehicle in respect of the goods moved in the same vehicle.
Such a procedure has to be followed even when the goods of a single invoice are being moved in multiple vehicles simultaneously.
Q49. How and who should generate the EWB for the sale of goods and how distance must be computed in case of “Bill to” and “Ship to” transaction?
Ans. In case of such transactions, the transporter shall not be required to carry two EWBs to be able to capture the movement of goods from the suppliers to the Ship-To party under Bill to- Ship To transaction. Even though there are two sales made, there is only one case of movement of goods. Therefore, only one e-way bill is required to be generated. Following fields have been added in Part-A of the FORM EWB-01 to tackle the issue of raising EWB in Bill to-Ship to transactions:
- Place of Dispatch: This includes the address of the place from where the goods are dispatched for the movement to the recipient.
- Bill To: This includes the details of the Bill To party on whose options the goods are to be transported at the place of Ship To party.
- Ship To: This allows the registered person to enter the address of Ship To party i.e. address where goods are destined. Therefore, EWB can be generated for Bill To-Ship To transactions easily by providing the above details in Part-A of the Form.
Q50. What is meant by the person causing movement of goods in case of Ex-Factory sale?
Ans. In case of ex-factory sale where the buyer assumes ownership and risk of the goods at the supplier factory and appoints his own transporter for movement of goods, it could be said to be that the movement of goods has been caused by the recipient. Based on this interpretation, the EWB may have to be generated by the recipient. This also finds support from the fact that if during the course of movement of goods, if the consignment is examined by the proper officer for some irregularity, the liability is on the owner of the goods i.e. buyer. Hence, it could be said that movement is caused by the recipient and he should generate EWB. However, if the buyer may request the supplier to arrange for the transportation and thus, the same can also be said to have been made at the request of the Buyer by the Supplier and EWB shall be generated accordingly.
Q51. What happens in the case of FOR sale?
Ans. In the case of FOR sale, the responsibility of the supplier is to deliver the goods to the buyer place. All in-transit risk is borne by the supplier. The transporter is also normally engaged by the supplier. Hence, it could be said that the movement is caused by the supplier and EWB should be generated by the supplier, not the recipient. However, if the supplier is unregistered, then the buyer is mandated to generate EWB.
Q52. Whether EWB is required to be generated for the movement of goods from the principal place of business to an additional place of business of the same registered person?
Ans. EWB is required to be generated for the movement of goods whether or not such movements of goods are for the purpose of supply. In the present case, where the goods are being moved from one place of business to another place of business of the same registered person, it is not treated as supply. However, it involves the movement of goods and hence, EWB should be generated under “For Own Use”
Q53. A is selling goods to B. However, these goods are stored in two additional places of business [warehouses] of A and the goods would be taken from both the warehouses in the same vehicle and then transported to the place of B. How to generate EWB in this case?
Ans. Two EWBs are required for the movement of goods in this case:
— First EWB for the movement of goods from the first warehouse to the second warehouse. The goods should be moved under-delivery challan and EWB should be generated for the same under “For Own Use” giving reference to the delivery challan.
— The second EWB for the movement of goods from the second warehouse to the place of the customer B. EWB should be generated on the basis of an invoice.
Q54. What is the requirement for raising EWB for the movement of tools to customer place?
Ans. The EWB is required for every movement of goods, even if it is for the purpose other than supply. There is no exemption for the movement of tools to the customers place. Hence, EWB is required in such a case also on the basis of a delivery challan issued for the movement of the tools.
Q55. What is the value of the goods that should be mentioned while generating EWB for the movement of goods from the place of job worker after the job work?
Ans. EWB should be generated on the basis of consignment value. The consignment value of goods shall be the transaction value [i.e., sale value of the goods], determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan. In the present case, the goods are being transported after job work and the transaction value u/s 15 of such goods includes even the job work services. Therefore, the value of the goods including even the value addition due to job work (job work charges + tax thereon) should be included in the delivery challan and accordingly should be included in the EWB
Q56. A person has been shifting his households from one State to another on account of a job change. Whether EWB is required to be generated?
Ans. Used personal and household effects have been covered in the Annexure to the Rule 138 in respect of which EWB is not required to be generated. Hence, such a person is not required to generate EWB in such cases.
Q57. The goods have been consigned to a city where trucks are not allowed to enter within the city due to “no entry” barrier. The goods are then transported in small tempos from such restricted points to the point of destination. How should EWB be generated in such a case?
Ans. With the recent amendment in the EWB portal, it is now possible to transport the goods pertaining to a single invoice in multiple vehicles simultaneously in the following manner:
— In respect to the given case, the registered person or the transporter may now choose the ‘Change to Multi-vehicle’ option and update the EWB for multivehicle movement.
— Under this option, the total quantity of the consignment is broken into small lots in accordance to the capacity of the respective vehicles.
— Each of such small lots is loaded onto every different vehicle and the details of Part-B pertaining to every such vehicle are updated on the portal.
— The above step may be repeated until the total quantity is loaded and moved. (System will not allow quantity to be shipped in multiple vehicles more than what has been declared while marking the EWB for multi-vehicle.
The option of the “Change to multi-vehicle” appears to be applicable only in the cases of transshipment where the movement of goods cannot be done in the same vehicle.
Q56. How to consider consignment value in case goods is being moved for renting purpose. Do we need to take the value of goods or value of the rent charged on goods?
Ans. The consignment value is the value of goods to be determined under section 15 of the CGST Act including applicable tax thereon. The rent charged represents the value of service portion whereas EWB is to be generated for the value of goods for which movement is to be undertaken. Hence, in such cases, the value to be considered should be of the goods, not the rental charges charged by the supplier of services. The movement of goods should be under-delivery challan based on which EWB may be generated. The value of goods should be mentioned in the delivery challan and e-way bill.
Q57. Whether two EWBs are required to be generated for the movement of goods imported from the customs port to the place of business of the importer in multiple vehicle?
Where goods imported under a single bill of entry are moved in from the customs port to the place of business of the importer in multiple-vehicle, then EWBs should be generated for every vehicle in which the goods are transported. In such cases, delivery challans should be generated for every vehicle giving reference to the bill of entry. The EWBs should be generated for every vehicle based on the delivery challan issued for such a particular vehicle.
The EWB system allows the generation of more than one EWBs for the same Bill of Entry. However, it is to be noted that the EWBs for the movement of goods imported in multiple vehicles should not be generated giving reference to the same Bill of Entry as the quantity and the value of the goods mentioned in the Bill of Entry would not match with the quantity and value of the goods being actually transported in such vehicles.
Q58. What are the consequences of non-issuance of EWB?
Ans. If EWBs, wherever required, are not issued in accordance with the provisions contained in rule 138, the same will be considered as contravention of rules. Below penalty provisions may get attracted for not complying with EWB rules:
- As per section 122(1) (xiv) of CGST Act a taxable person who transports any taxable goods without the cover of specified documents (e-waybill is one of the specified documents) shall be liable to a penalty of rupees 10,000 or tax to be avoided, whichever is greater.
- Any person who acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying of any goods which he knows or has reasons to believe are liable to confiscation under this Act shall be liable to a penalty which may extend upto 25,000 rupees
- Section 129 of the CGST/SGST Act provides that where any person transports any goods while they are in transit in contravention of Act or Rules made thereunder, such goods shall be liable to detention and seizure and shall be released on:
|Description||Taxable Goods||Exempted Goods|
|Owner of goods comes forward for payment:||Payment of applicable tax and penalty equal to 100% of tax payable on such goods||Payment of 2% of the value of goods or Rs. 25,000/- whichever is less|
|The owner of goods does not come forward for payment. The transporter might be required to pay the following amounts in such cases.||Payment of applicable tax and penalty equal to 50% of the value of goods reduced by tax amount paid thereon||Payment of 5% of the value of goods or Rs. 25,000/- whichever is less|
Q59. When and how can a registered person extend the validity of EWB?
Ans. Rule 138 (10) of CGST Rules 2017 provides that, under circumstances of an exceptional nature, including trans-shipment, where the goods cannot be transported within the validity period of the EWB, the transporter may extend the validity period after updating the details in Part B of FORM GST EWB-01, if required.
It is suggested that since the phrase ‘exceptional nature’ appears categorically in the provisions, the person who wishes to use such a facility must ensure that he has properly documented the circumstances as the same can be demanded by tax authorities later. In case such circumstances cannot be established, the transaction may be considered as one carried out without a valid EWB. It appears that the option of extension of the validity of e-way bill can be used only in the cases like natural calamity, accidents, traffic jams, strikes, etc., including transshipment and may not be correct to be used in the normal courses where the goods could not be delivered due to delay from the transporter or the consignors’ side.
This option is available for extension of EWB before 8 hours and after 8 hours of expiry of the validity. Here, the transporter will enter the EWB number and enter the reason for requesting the extension, from a place (current place), approximate distance to travel and Part-B details. It may be noted that he cannot change the details of Part-A. He will get the extended validity based on the remaining distance to travel.
Q60. Whether it is required to generate EWB in case of movement of empty containers?
Ans. It is to be noted that exemption has been granted by way of Notification No. 12/2018 which provides that a registered person is not required to generate an EWB where the empty cargo containers are being transported. This exemption may be applicable in case of transportation of empty bins or containers which are returned to the original supplier by customer.
Q61. In many cases where manufacturer or wholesaler is supplying to retailers, or where a consolidated shipment is shipped out, and then distributed to multiple consignees, the recipient is unknown at the time the goods are dispatched from shipper’s premises. A very common example is when FMCG companies send a truck out to supply Kirana stores in a particular area. What needs to be done in such cases?
Ans. In such cases, EWB shall be generated for the outward movement of goods. No supply is being made, movement is caused on behalf of self. In such cases, delivery challan may be used for the generation of EWBs. All the provisions for delivery challan need to be followed along with the rules for EWBs. The delivery challan and the EWB should be generated for the movement of goods to the retailer or the customer where the goods would be delivered at the latest. EWB should also be generated for the movement of unsold goods back to the place of business of the wholesaler under-delivery challan.
Q62. A transporter has separate registrations under GST in multiple/all States and has multiple places of business all over India. How to generate and manage EWB from each of such locations separately?
Ans. Notification No.28/2018- Central Tax dated June 19, 2018, provides that – a transporter who is registered in more than one States having the same PAN, may apply for a unique common enrolment number in FORM GST ENR-02 using any one of his GSTIN. A unique enrollment no. shall be generated and communicated to the transporter on validation of the given details which shall render all the GSTINs of transporter ineligible to be used for EWB.
Therefore, the unique enrollment number can be used as TRANS ID of the transporter for all the registered locations in India
This is very welcome move considering that the transporters were earlier required to provide GSTIN/enrolment ID for each of the States respectively which was difficult to track both for the transporters as well as the consignor. The revised mechanism would reduce the burden of maintaining multiple IDs by single transporter.
Q63. Whether penalty for non-generation of the EWB has to be compulsorily be paid in cash or it may be paid by utilization of Input Tax Credits?
Ans. It has been clarified in the recent circular issued by the government that the penalty in relation to non-generation of EWB shall be added in the electronic liability register of the concerned person and the payment for the same shall be made by debiting electronic cash ledger or the electronic credit ledger. Hence, the penalty may be paid by utilizing credit balance also. However, section 49 of the Act provides that only output tax can be paid through and penalty may not fall under the purview of output tax.