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Comprehensive Guide to E-Way Bills for Goods and Services Tax in Gujarat

This article offers a comprehensive overview of the E-Way Bill system under GST in Gujarat. It details the system's evolution from its pre-GST origins to current interstate and intrastate rules, including specific categories of goods requiring E-Way Bills within the state. The guide also explains methods of generation, validity periods, and processes for rejection or cancellation, alongside common challenges faced by dealers in Gujarat.

📖 7 min read read🏷️ E-Way Bill

The electronic E-way Bill system under the Goods and Services Tax (GST) framework was established to facilitate quicker and smoother goods movement through a portal-based payment mechanism, eliminating vehicle delays at state borders. This system also assists the government in preventing revenue leakage.

Latest Updates on E-Way Bills

August 29, 2021

From May 1, 2021, to August 18, 2021, taxpayers were exempt from e-way bill blocking due to non-filing of GSTR-1 or GSTR-3B (for two months or more for monthly filers, and one quarter or more for QRMP taxpayers) for the period spanning March 2021 to May 2021.

August 4, 2021

E-way bill blocking for non-filing of GSTR-3B recommenced on August 15, 2021.

June 1, 2021

  1. The e-way bill portal clarified that a suspended GSTIN cannot generate an e-way bill. However, a suspended GSTIN can be listed as a recipient or transporter on a generated e-way bill.
  2. The ‘Ship’ transport mode was updated to ‘Ship/Road cum Ship’. This allows users to input a vehicle number for initial road transport and a bill of lading number and date for subsequent ship transport. This update helps in leveraging ODC benefits for ship movements and permits vehicle detail updates for road legs.

May 18, 2021

CBIC Notification 15/2021-Central Tax clarified that GSTIN blocking for e-way bill generation now applies only to the defaulting supplier’s GSTIN, not the defaulting recipient’s or transporter’s GSTIN.

E-Way Bill in Gujarat: The Pre-E-Way Bill Era

Gujarat has historically been a significant business hub, with extensive manufacturing and trading activities contributing substantially to India’s economic growth. The state government has consistently aimed for straightforward and transparent commercial tax processes to ease business operations.

Before the introduction of GST and the unified E-way Bill system, Gujarat maintained its own system for tracking goods movement. A permit, in Form 402/403/405, was mandatory for any taxable goods moving into, out of, or within the state. These permits were generated via the Gujarat commercial tax department’s website.

Under the VAT regime, for goods moving within or out of the state, the consignor had to electronically generate Form 402 in triplicate (for the consignor, driver, and consignee). For goods entering the state, Form 403 was required in triplicate from the consignor. This was mandated by an order issued on December 22, 2014.

E-Way Bills for Interstate Goods Movement

An order from the Central Government on March 7, 2018, integrated interstate goods movement into the National E-way Bill system, effective April 1, 2018. Consequently, for any goods transportation from Gujarat to another state, businesses must generate an E-way Bill on the official portal.

E-Way Bills for Intrastate Goods Movement

Initially, a state government order on March 28, 2018, declared no E-way Bill was required for intrastate goods movement (within Gujarat), effective April 1, 2018. However, a subsequent order on April 11, 2018, stipulated that from April 15, 2018, E-way Bills would be mandatory for intrastate movement of 19 specific categories of goods, provided their value exceeded Rs. 50,000. Gujarat, alongside four other states, adopted these transit pass requirements.

Categories Requiring Intrastate E-Way Bills in Gujarat (Effective April 15, 2018):

  1. All edible oils
  2. All taxable oil seeds
  3. All oil cakes
  4. Iron and steel
  5. Ferrous and non-ferrous metals and their scrap
  6. Ceramic tiles
  7. Brass parts and items
  8. Processed tobacco and related products
  9. Cigarettes, Gutkha, and Pan-masala
  10. All types of yarns
  11. All types of plywood, block board, decorative, and laminated sheets
  12. Timber and timber products
  13. Cement
  14. Marble and Granite
  15. Kota Stones
  16. Naphtha
  17. Light Diesel Oil
  18. Tea (leaf or powder form)

It is important to note that no E-way Bill is required for intracity movement of any goods, including those listed above.

Methods for Generating E-Way Bills

E-way Bills can be generated using two primary methods:

  1. Online Portal: Users can generate E-way Bills by visiting the NIC Portal. Dealers must register using their GSTIN. The portal requires details such as consignee name and address, item description, goods value, and quantity. The user-friendly form simplifies the process.
  2. SMS (Short Message Service): The Central Government also provides an SMS facility for E-way Bill generation. Detailed steps for using this service are available here.

E-Way Bill Validity Period

An E-way Bill's validity is determined by the distance the goods are transported, starting from its generation date and time.

Type of ConveyanceDistanceValidity of EWB
Other than Over-dimensional cargoLess than 100 Kms1 Day
For every additional 100 Kms or part thereof1 Additional Day
For Over-dimensional cargoLess than 20 Kms1 Day
For every additional 20 Kms or part thereof1 Additional Day

E-way Bill validity can be extended. The generator can extend its validity either four hours before or within four hours after its expiry. Information on modifying E-way Bill validity can be found here.

Rejecting an E-Way Bill

Dealers have the option to reject E-way Bills generated by another party (recipient or supplier) using their GSTIN. For instance, if a consignment is canceled mid-route and never reaches its destination, the recipient can reject the E-way Bill. To reject an E-way Bill, the dealer needs:

  • The generation date of the E-way Bill
  • The E-way Bill number to be rejected

Steps to Reject an E-Way Bill:

  1. Log in to the E-way Bill portal and select 'Reject'.
  2. Choose the generation date of the E-way Bill and click 'Submit'.
  3. A list of all E-way Bills generated on that date will appear.
  4. Tick the E-way Bills you wish to reject.

Upon successful rejection, a confirmation message will be displayed. It's important to note that if acceptance or rejection is not communicated within 72 hours, the E-way Bill is automatically considered accepted.

Cancelling an E-Way Bill Post-Generation

If goods are not transported, or if the transportation details differ from those provided in the E-way Bill, the generator can cancel it.

Steps to Cancel an E-Way Bill:

  1. Go to 'E-way Bill' or 'Consolidated EWB' and select 'Cancel' from the dropdown menu.
  2. Enter the 12-digit E-way Bill number for the EWB to be canceled and click 'Go'. The selected EWB will appear.
  3. Provide a suitable reason for cancellation, such as goods not being moved or incorrect entry details.

Important Considerations for E-Way Bill Cancellation:

  • Only the E-way Bill generator can cancel it.
  • Cancellation must occur within 24 hours of E-way Bill generation.
  • Using a canceled E-way Bill is illegal.
  • An E-way Bill cannot be canceled if it has been verified by an empowered officer.

Common Challenges Faced by Gujarat Dealers

Gujarat plays a crucial role in India's textile fabric industry, with numerous manufacturers and traders operating in the state. The Gujarat government prioritizes easing business operations.

Excluding textile fabrics from the list of items requiring an E-way Bill for intrastate movement is viewed as a significant positive step by textile dealers, simplifying their business conduct.

Another critical issue for Gujarat dealers is the uniformity of E-way Bill validity periods. Current timelines apply universally to all items in transit. However, dealers raise concerns that while general goods cover distances within specified days, items like heavy machinery and large equipment often require double the time. Given Gujarat's substantial manufacturing activities, these issues present obstacles to smooth and hassle-free business operations.

Frequently Asked Questions

What is the primary purpose of the E-Way Bill system under GST?
The E-Way Bill system aims to streamline and accelerate the movement of goods across India by creating a uniform online permit system, reducing delays at checkpoints, and enhancing the government's ability to monitor tax compliance and prevent revenue leakage.
When is an E-Way Bill typically required for goods movement?
An E-Way Bill is generally required for the movement of goods worth more than Rs. 50,000, whether for interstate or intrastate transport, though specific state rules and categories of goods may have different thresholds or exemptions.
Who is responsible for generating an E-Way Bill?
The E-Way Bill is typically generated by the consignor (supplier), recipient (buyer), or the transporter, depending on who is arranging the movement of goods and if they are a registered GST taxpayer. If neither the consignor nor recipient generates it, the transporter must do so.
What happens if an E-Way Bill is not generated when required?
Failure to generate a mandatory E-Way Bill can result in penalties, including fines or detention and seizure of goods and the conveyance. The penalties can be substantial, often 100% of the tax due or a fixed amount per consignment.
Can an E-Way Bill be modified or cancelled after generation?
Yes, an E-Way Bill can be cancelled within 24 hours of its generation if the goods are not transported or the details are incorrect. Modifications to certain parts, such as vehicle numbers, are also possible, and the validity period can be extended before or shortly after its expiry.

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