Analysis of E WAY BILL RULES

E- Way Bill is not applicable to

Ø Movement of goods between two unregistered persons

Ø Where Consignment value of goods is lesser than Rs. 50,000. Consignment value shall include tax also (in the opinion of the author) [R.138(1)}

Ø Transportation of goods by a non motorized conveyance [Rule 138(14)(b)] [Motorized two wheeler, three wheeler not excluded]

Ø Postal baggages transported by Department of Posts [R.138(14)(a)]

Ø Goods for personal use [R.138(14)(a)]

Ø House hold effects [R.138(14)(a)]

Ø Jewellery and Jewellery articles, Precious or Semi Precious Stones,  under Chapter 71 [R.138(14)(a)]

Ø Corals [R.138(14)(a)]

Ø  Currency [R.138(14)(a)]

Ø LPG for supply to Household and non domestic exempted category and Kerosene oil [R.138(14)(a)]

Ø Exempted Goods [R.138(14)(a)] like a) live animals (b) unfrozen meat, fish ( c) Fresh Milk, curd, lassi, (d) unbranded paneer, (e)fresh fruits, (f) vegetables, (g) Unbranded rice,flour etc., (h)  salt (i)  bread (j) plastic  and glass bangles, (k) firewood,( l) newspaper, books( m)  Mannnually operated or Animal driven agri implements, (n)puja samagri

Ø Transportation of goods from  port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs [R. 138(14)(c)]

Ø Movement of goods with in notified area. [R.138(14)(d)]

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Following items though exempted from GST have not been exempted form E-Way Bill Rules

Ø Prasadam supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc.

Ø Electrical Energy

Ø Supply of Lottery that has already suffered tax in the hands of state , Union territory or local authority when supplied to distributor or selling agent

Following items though not leviable to GST have not been exempted from E-Way bill rules:

a)     Alcohlic liquor for human consumption

b)    Petroleum Products

E-Way Bill Rules are applicable to a registered person who causes movement of goods. It means the E-Way Bill Rules are not applicable to:

Ø Unregistered Person

Ø Where no movement is involved.

Comments:

1.     As per Explanation 1 to Rule 138(3), 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.

2.     Further where supply takes place between two registered person and recipient undertakes to collect the goods from the supplier through his conveyance, it is the recipient and not the supplier who causes movement of goods and hence  E Way bill should be generated by recipient and not the supplier.

E- Way Bill Rules are applicable where consignment value exceeds Rs. 50,000/- .

E- Way Bill is applicable for movement of goods:

i)       In relation to Supply

ii)     For reasons other than supply

iii)   Due to Inward Supply from Unregistered Person

Hence E-Way bill is applicable to movement caused by registered person  of consignment value exceeding Rs. 50,000 through motorized conveyance for

Ø Movement of goods between branches of same concern.

Ø Movement of  goods for Job Work

Ø Goods Sent for Repair and sent back

Ø Purchase Return

Ø Sale on approval basis

Ø Door to door movement

v As per 3^rd Proviso to Rule 138(3) Where the goods are transported

a)     for a distance of less than ten kilometres

b)     within the State or Union territory

c)     from the place of business of the consignor to the place of business of the transporter for further transportation

the supplier or transporter may not furnish vehicle number

v As per proviso to R. 138(5), where the goods are transported for a distance of less than ten kilometres 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 conveyance may not be updated in the e-way bill

Comments:

It means that there is no exemption from providing vehicle details where:

a)     Place of business of  transporter is more than 10Kms away from consignor or consignee

b)    Place of business of transporter is in some other state or union territory e.g. in case of

i)                    Chd, Mohali, Panchkula or

ii)                  Gurgaon, Delhi, Noida

Ø If goods do not finally reach the consignee’s place of business, there is no exemption from providing conveyance details.

Following information in Part A of E- Way Bills to be compulsorily furnished before commencement of movement of goods :

A.1 GSTIN of Recipient

A.2 Place of Delivery (PIN Code of place of delivery)

A.3 Invoice or Challan Number

A.4 Invoice or Challan Date

A.5 Value of Goods

A.6 HSN Code

A.7 Reason for Transportation (Supply,  Export or Import,  Job Work,  SKD or CKD ,  Recipient not known ,   Line Sales ,  Sales Return ,  Exhibition or fairs ,   For own use , Others)

A.8 Transport Document Number (Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number)

1.     As per Rule 138(2), Where goods are transported by registered person as:

a)     consignor or

b)    the recipient of supply as the consignee

In

a)     His Own Conveyance

b)    Hired Conveyance [i.e. GTO]

c)     By railways

d)    By Air Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01 By Vessel

E- Way bill may be generated by consignor or above  recipient after furnishing Vehicle Number in Part B of EWB-01

2.     If due to vehicle number not being known to consignor or consignee, it is not generated by him  and as per Rule 138(3) goods are handed over to a transporter for transportation by road,

Ø the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and

Ø 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 (it should be Part A and Part B, in the opinion of the author)

3.     As per Explanation 2 to Rule 138(3), The information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel.

Comments: There is no requirement to generate E-Way bill in such cases

4.     As per Rule 138(4), 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 the common portal.

As per Rule 138(5),

Ø Any transporter transferring goods from one conveyance to another

Ø  in the course of transit

Ø  shall,

Ø before such transfer and further movement of goods,

Ø update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01

Comments: Since the movement of goods commences from the place of business of consignor, the goods can be said to be in course of transit even while they are lying at the store of transporter.

1.             Optional Generation of Consolidated bill under R. 138(6)]

Ø After e-way bill has been generated in accordance with the provisions of sub-rule (1),

Ø Where multiple consignments are intended to be transported in one conveyance,

Ø the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and

Ø a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods

[Comments: E Way Bill is  generated under Rule 138(1), only where bill is consignment value is more than Rs. 50,000. Generation of Consolidated E- Way bill in such cases is optional]

2.     Compulsory Generation of E Way Bill under Rule 138(7)

Ø Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and

Ø  the value of goods carried in the conveyance is more than fifty thousand rupees,

Ø the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and

Ø may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods

1.     As per Ist proviso to Rule 138(3) ,the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees

2.     As per 2^nd Proviso to Rule 138(3), 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 in the manner specified in this rule:

As per Proviso to Rule 138(8), when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the email is available

Comments: Such Information shall be available where a person has applied for registration

As per Rule 138(10), read with explanation there to,

a)     For distance up to 100 Kms.,  EWB shall be valid for 24 hours from the time E-Way bill has been generated.

b)    For distance more than 100 Kms, EWB shall be valid for 48 hours from the time EWB was generated.

Ø For certain categories of goods, period of validity may be extended by Commissioner

Ø Under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

Comments: It means vehicle number may be changed

1.     As per Rule 138A(2), A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1

2.     As per Rule 138A(3), Where the registered person uploads the invoice under sub-rule (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.     As per Rule 138(8), The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1

Ø Where an e-way bill has been generated under this rule,

Ø but goods are either not transported or

Ø are not transported as per the details furnished in the e-way bill,

Ø  the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner,

Ø  within 24 hours of generation of the e-way bill

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

1.     As per Rule 138(10), The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.

2.     As per R. 138(11), Where the recipient referred to in sub-rule (11) does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.

Comments: It means that separate E-way need not be generated for passing through each state.

As per R. 138A(1),  The person in charge of a conveyance shall carry—

(a) the invoice or bill of supply or delivery challan, as the case may be [or Invoice Reference Number in lieu of tax Invoice (valid for 30 days from date of uploading GST-INV-01]; and

(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

As per R. 138A(4) The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.

Documents in lieu of EWB in notified Cases [R. 138A(5)]

Ø Notwithstanding anything contained clause (b) of sub-rule (1),

Ø  where circumstances so warrant,

Ø  the Commissioner may, by notification,

Ø 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)  a delivery challan, where the goods are transported for reasons other than by way of supply

Interception of Conveyanvce

(1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intraState movement of goods.

(2) The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the eway bill has been mapped with the said device.

Physical Verification of Conveyance only by authorized or approved officer

(3) The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf:

Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.

Ø A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and

Ø  the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection

No Multiple Verifications

Ø Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State,

Ø no further physical verification of the said conveyance shall be carried out again in the State,

Ø unless a specific information relating to evasion of tax is made available subsequently.