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Navigating Eway Bill Regulations in Haryana under GST

This article outlines the electronic way bill (Eway Bill) system under GST, specifically focusing on its implementation and rules in Haryana. It details the historical context of goods movement declarations in the state, the current requirements for interstate and intrastate Eway Bills, and the procedures for generation, validity, rejection, and cancellation. Recent updates to e-way bill regulations are also covered, highlighting changes related to GSTIN blocking and transport modes.

📖 4 min read read🏷️ E-Way Bill

The electronic way bill (Eway Bill) system, implemented under the Goods and Services Tax (GST) framework, streamlines the movement of goods. This portal-based payment system facilitates quicker transportation by removing delays at state borders. It also aids the government in preventing revenue losses.

Recent E-Way Bill Updates

August 29, 2021 From May 1, 2021, to August 18, 2021, taxpayers were temporarily exempt from e-way bill blocking due to overdue GSTR-1 or GSTR-3B filings (for two months or more for monthly filers, or one quarter or more for QRMP taxpayers) for the period of March to May 2021.

August 4, 2021 The blocking of e-way bills for non-compliance with GSTR-3B filing resumed on August 15, 2021.

June 1, 2021

  1. The e-way bill portal's release notes clarified that a GSTIN under suspension cannot generate an e-way bill. However, a suspended GSTIN can still be the recipient or transporter for an already generated e-way bill.
  2. The "Ship" transport mode has been updated to "Ship/Road cum Ship". This allows users to input a vehicle number for initial road movement and a bill of lading number and date for subsequent ship transport. This update supports ODC benefits for ship transport and permits vehicle detail updates for road segments.

May 18, 2021 The CBIC, through Notification 15/2021-Central Tax, announced that e-Way Bill generation blocking now applies solely to the defaulting supplier's GSTIN, not the defaulting recipient's or transporter's GSTIN.

Historical Context of Way Bills in Haryana

Haryana has experienced considerable business expansion over the last two decades. It stands as India's leading automotive hub, manufacturing nearly 66% of passenger cars, 50% of tractors, and 60% of two-wheelers nationwide. The state has also seen significant growth in its IT sector, becoming the third-largest software services exporter. Before the introduction of the Eway Bill system (in the pre-GST era), the state government mandated declarations for goods transportation.

VAT regulations, outlined in a circular dated May 22, 2003, required dealers to generate a declaration in Form VAT-D4 (Inward and Outward), also known as a 'Transit Slip', for any goods movement exceeding Rs. 10,000 in value. This slip detailed the goods, consignor, consignee, and transporter. These transit slips were generated via the state government's website, www.haryanatax.gov.in. Notably, transit slips were not necessary for the transfer of tax-exempt goods.

Eway Bills for Interstate Goods Movement

The Central Government issued an order on March 7, 2018, integrating interstate goods movement into the National Eway Bill system starting April 1, 2018. Consequently, businesses in Haryana must generate Eway Bills on the official portal (https://ewaybill.nic.in/) for all goods transported outside the state.

Eway Bills for Intrastate Goods Movement

On March 30, 2018, the state government informed dealers that Eway Bills were not required for intrastate (within the state) goods movement from April 1, 2018. This temporarily eliminated the need for Eway Bill permits for internal state movements.

However, a subsequent announcement by the Haryana Government on April 15, 2018, stipulated that from April 20, 2018, Eway Bills would be mandatory for all intrastate goods movements where the value of the goods surpassed Rs. 50,000. Haryana, along with five other states, adopted this rule, making transit pass requirements compulsory for registered dealers within the state.

Methods for Eway Bill Generation

Eway Bills can be generated using two primary methods:

  1. Through the official online portal
  2. Via SMS (Short Message Service)

To generate Eway Bills using the online portal, dealers must access the NIC Portal. After registering with their GSTIN, they can begin generating Eway Bills for goods transportation. The process requires providing essential details such as the consignee's name and address, item descriptions, goods value, and quantity. The online form is designed for ease of use.

Eway Bill Validity Periods

The validity of an Eway Bill is determined by the distance the goods will travel, starting from the generation date and time.

Type of ConveyanceDistanceEWB Validity
Other than Over Dimensional CargoLess than 100 Km1 Day
For every additional 100 Km or part thereof1 Additional Day
For Over Dimensional CargoLess than 20 Km1 Day
For every additional 20 Km or part thereof1 Additional Day

Eway Bill Rejection Process

A dealer has the option to reject an Eway Bill that was generated by another party (either the recipient or supplier) using their GSTIN. For instance, if a consignment is canceled en route and never reaches its destination, the recipient can reject the Eway Bill. To initiate a rejection, the dealer needs the following information:

  • The date the Eway Bill was generated
  • The specific Eway Bill number to be rejected

Steps to Reject an Eway Bill

  1. Access the Eway Bill portal and click on the 'Reject' option.
  2. Select the generation date of the Eway Bill and click 'Submit'.
  3. A list of all Eway Bills generated on that date will appear.
  4. Check the boxes next to the Eway Bills you wish to reject.

A confirmation message will appear once the Eway Bill is successfully rejected. It is important to note that if acceptance or rejection is not communicated within 72 hours, the Eway Bill is automatically considered accepted.

Eway Bill Cancellation after Generation

If goods are not transported, or if their transportation deviates from the details provided in the Eway Bill, the generator of the Eway Bill can cancel it by following these steps:

Steps to Cancel an Eway Bill

  1. Navigate to 'Eway Bill' or 'Consolidated EWB' and choose 'Cancel' from the dropdown menu.
  2. Enter the 12-digit Eway Bill number of the EWB to be cancelled and click 'Go'.

The selected EWB will be displayed.

Provide an appropriate reason for cancellation, such as goods not being moved or incorrect entry details.

Key considerations for Eway Bill cancellation include:

  • Only the generator of the Eway Bill can cancel it.
  • The cancellation must occur within 24 hours of generating the Eway Bill.
  • Once cancelled, using that Eway Bill becomes illegal.
  • If an empowered officer has already verified the Eway Bill, it cannot be cancelled.

Frequently Asked Questions

What is an Eway Bill in the context of Indian GST?
An Eway Bill is an electronic document required under the Goods and Services Tax (GST) regime for the movement of goods exceeding a specified value. It ensures that goods being transported comply with GST rules and helps in tracking their movement across states.
When is an Eway Bill required for the movement of goods?
An Eway Bill is typically required for the interstate movement of goods with a consignment value exceeding Rs. 50,000. Some states also mandate Eway Bills for intrastate movement if the value surpasses a certain threshold, which may vary by state.
What is the validity period of an Eway Bill?
The validity of an Eway Bill depends on the distance the goods are transported. For every 100 km (or part thereof) for normal cargo, the validity is one day. For over-dimensional cargo, it's one day for every 20 km (or part thereof).
Can an Eway Bill be cancelled or rejected after its generation?
Yes, an Eway Bill can be cancelled by its generator within 24 hours if the goods are not transported or if incorrect details were entered. A recipient can also reject an Eway Bill if they do not accept the consignment, typically within 72 hours.
What happens if goods are transported without a valid Eway Bill when required?
Transporting goods without a valid Eway Bill, when one is legally required, can lead to penalties. The goods and the conveyance carrying them are liable for detention or seizure by tax authorities, and a penalty may be imposed.

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