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E way bill for goods of more than Rs. 50,000

  1. Conditions in Which E-way bill is required
  2. Process of Generating E way Bill
  3. E-way bill requirements for Transporter
  4. Validity of E-way Bill
  5. Acceptance or Rejection by the Recipient
  6. Cancellation of E-way Bill
  7. Verification of documents, conveyances and Goods

Conditions in Which E-way bill is required

A registered person needs to generate a e-way bill where the goods need to be moved from one place to another and the value of goods is more than Rs. 50,000. Such e-way bill is also required where value of goods exceeding Rs. 50,000 is purchased from an unregistered person by a registered person and goods need to be moved. In such case the recipient registered person needs to generate the e-way bill.

E-way bill is required even for movement of goods within the same state or union territory (Intra state sales).

The registered person or the transporter may generate and carry the e-way bill on his own will even if the value of goods in less than Rs. 50,000.

Process of Generating E way Bill

Information is to be furnished in Part A of Form GST INS-01, in electronic manner only before commencement of movement of goods . Then Part B of GST INS-01 is to be generated as per the point applicable below

  1. Goods sent by own conveyance or hired one
    The person has to generate the Form GST INS-1 by furnishing the details in Part B.
  2. Goods are handed over to transporter
    In such case the person has to furnish details of transporter in Part B and then the e-way bill will be generated by the transporter.

Upon generation of the e-way bill, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

The facility of generation and cancellation of e-way bill may also be made available through SMS.

E-way bill requirements for Transporter

If a transporter wants to transfer goods from one vehicle to another in course of transit then such transporter has to generate a new e-way bill in Form GST INS-01 before such transfer.

If transporter wants to transport multiple consignments in one vehicle then he has to indicate serial number of e-way bills generated in respect of each such consignment and a consolidated e-way bill in FORM GST INS-02 is to be generated before movement of goods.

If the consignor of goods has not generated e-way bill then the transporter has to generate Form GST INS-01 on the basis of invoice or bill of supply or delivery challan, if the value of goods is exceeding Rs. 50,000.

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

Validity of E-way Bill

An e-way bill or consolidated e-way bill generated under this rule shall be valid for a period from the relevant date as mentioned below

S No. Distance Validity Period
1. Less than 100 km 1 day
2. 100 km or more but less than 300km 3 days
3. 300 km or more but less than 500km 5 days
4. 500 km or more but less than 1000km 10 days
5. 1000 km or more 15 days

Relevant date shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated.

Commissioner may extend the validity period for certain categories of goods.

Acceptance or Rejection by the Recipient

The details which are filed in Part A of Form GST INS-01 shall be made available to the registered recipients on the GST portal. The recipient can accept or reject such the consignment covered by e-way bill. If the recipient doesn’t accepts or rejects within 72 hours from the time on which details is made available to him, it shall be deemed that it is accepted.

Cancellation of E-way Bill

If the goods are not being transported or not being transported as per the details furnished in a e-way bill then such e-way bill may be cancelled withing 24 hours of its generation. If the transporter has generated Form GST INS-01 for transfer of such goods to another vehicle then such e-way  bill can not be cancelled.

Verification of documents, conveyances and Goods

  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 intra-State movement of goods.
  2. The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID.
  3. Physical verification of conveyances shall be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in this behalf:
    Provided that on receipt of specific information of 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 authorized by him in this behalf.
  4. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS – 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS – 03 shall be recorded within three days of the inspection.
  5. 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, no further physical verification of the said conveyance shall be carried out again in the State, unless specific information relating to evasion of tax is made available subsequently.
  6. Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST INS- 04 on the common portal.

Other Points

The information provided in Form GST INS-01 by a person will be made available to him on the portal so that he may utilize such information to file his Details of Outward Supplies for filing GST Returns.

Source: E way Rules GST

Also Read:

Composition Scheme under GST
Valuation under GST

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