Understanding E-Way Bill Regulations and Their Effect on Indian Logistics

This article delves into key compliance aspects of e-way bills, examining how transporters can effectively manage common issues and the broader implications for transport and logistics businesses.

Latest Updates

August 29, 2021

From May 1, 2021, to August 18, 2021, taxpayers were exempted from e-way bill blocking due to overdue GSTR-1 or GSTR-3B filings (for two months or a quarter, applicable to monthly or QRMP taxpayers, respectively) pertaining to the March to May 2021 period.

August 4, 2021

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

June 1, 2021

1. The e-way bill portal clarified in its release notes that a suspended GSTIN cannot generate an e-way bill. However, a suspended GSTIN can still be listed as a recipient or transporter on a generated e-way bill.
2. The 'Ship' mode of transport was updated to 'Ship/Road cum Ship'. This allows users to enter a vehicle number for initial road movement and a bill of lading number and date for subsequent ship transport. This enhancement helps in utilizing ODC (Over-Dimensional Cargo) benefits for sea transport and facilitates vehicle detail updates for road legs of the journey.

May 18, 2021

Notification 15/2021-Central Tax by the CBIC specified that GSTIN blocking for e-way bill generation now applies only to the defaulting supplier's GSTIN, excluding those of defaulting recipients or transporters.

Historical Context for Transporters

In Karnataka, the previous e-Delivery Note system mandated dealers to inform the department about bulk goods movement transactions before transport began, contrasting with the older practice of periodic, retrospective reporting. This system evolved into e-SUGAM due to difficulties dealers faced in obtaining printouts, thereby placing the onus of waybills primarily on dealers, not transporters.

E-SUGAM System in Karnataka

Under the e-SUGAM system, when a dealer submits transaction details for goods valued over Rs 25,000 being transported, the system validates this information and generates a unique E-SUGAM acknowledgment number. This number, along with the E-SUGAM form, then serves as the essential clearance document for the transport vehicle at checkpoints. Similarly, each Indian state maintained its own specific formats for declaration forms, permits, and waybills.

E-Way Bill Compliance Requirements for Transporters

• An e-way bill is an electronically generated document for inter-state or intra-state goods movements exceeding Rs. 50,000. The seller or consignor is typically responsible for its generation; however, a transporter may generate it with proper authorization from the seller.
• The individual in charge of a conveyance must carry the relevant tax invoice, bill of supply, delivery challan, or bill of entry, along with either a copy of the e-way bill or its unique number obtained from the common portal.
• Once an e-way bill is generated, it cannot be modified for any errors. Nevertheless, it can be cancelled within 24 hours of its generation.
• When creating an e-way bill, registered persons can input the transporter's 15-digit ID in the transportation details (Part B). This assigns the e-way bill to that transporter for updating vehicle information. Subsequently, the transporter can reassign it to another transporter using the 'Update EWB Transporter' option, after which the original generator loses the ability to change the transporter.
• The vehicle number on an e-way bill can be updated multiple times before its validity expires.
• The most recent vehicle number must be present on the e-way bill and match the vehicle transporting the goods if inspected by authorities.
• Goods are often transported with intermediate stops or via multiple modes like air, rail, or road. In such cases, the transporter must update the new vehicle number and/or mode of transport in Part B of Form GST EWB 01. A physical copy of the e-way bill is also required for goods delivery.
• If a supplier issues multiple invoices for different movements of goods for the same consignor and consignee, a separate e-way bill must be generated for each invoice. This rule applies regardless of whether the consignors or consignees are the same or different.
• Multiple invoices cannot be combined into a single e-way bill. However, after generating individual e-way bills for each invoice, a Consolidated EWB can be prepared for transportation purposes to minimize paperwork, provided all goods are transported in one vehicle.
• The validity period of an e-way bill is determined by the approximate distance entered during generation and the type of conveyance used. For instance, a distance of 525 KMs typically grants a 6-day validity period.

E-Way Bill Validity Period

Refer to the table below for a quick guide to determine validity:

• For intra-state goods transport over less than fifty kilometers from the consignor's business premises to the transporter's location for further movement, the vehicle number is not mandatory. Similarly, vehicle details are not required when goods move less than 50 KM within the state from the transporter's business premises to the consignee's.
• As per provision 138(7), an e-way bill is required for goods movement in a vehicle or conveyance with a value exceeding Rs. 50,000 (either per invoice or in aggregate for all invoices in a vehicle/conveyance). However, as per an update on March 23, 2018, transporters are temporarily exempt from generating an e-way bill where individual consignments are less than or equal to Rs. 50,000 but the aggregate value exceeds Rs. 50,000, until a new date is notified.
• Empty vehicles or carriers, including empty cargo containers, do not require an e-way bill since they do not involve goods movement or associated value. A significant benefit of the e-way bill system is the streamlining of state border crossings. Previously, substantial time was lost validating documents for inter-state goods movements, impeding businesses operating across multiple states.