Understanding E-Way Bill Regulations for Goods Movement in Kerala

Following the Goods and Services Tax (GST) implementation, Kerala initially utilized a transitional system to monitor goods transportation before fully adopting the E-Way Bill framework.

Latest Updates

• January 24, 2025: As of January 20, 2025, the issuance of E-Way Bills has become compulsory for the intrastate movement of gold within Kerala. This mandate, specified by GSTN, applies to goods under HSN chapter 71, with the exception of imitation jewelry (HSN 7117).
• December 27, 2024: Effective January 1, 2025, the Kerala State Tax Commissioner's Notification No. 10/2024-State Tax requires registered individuals to generate E-Way Bills for the intrastate movement of gold. This requirement applies when the consignment's value exceeds Rs. 10 lakhs. Registered persons must provide the necessary information in Part A prior to initiating such movement.

Kerala's 'e-Consignment' System During the VAT Period

In the Value Added Tax (VAT) era, goods transported throughout Kerala were tracked using a self-declaration framework. From December 1, 2011, registered individuals shipping goods out of Kerala were required to submit an online declaration, known as 'e-consignment,' using Form 8F. This declaration needed to be filed electronically before the goods arrived at Kerala's state border check posts, resulting in the issuance of a token number. A specific list of commodities mandated e-Consignments. The 'e-consignment' declaration had two primary sections.

The first section captured details such as the vehicle registration number, the anticipated check post, and the expected arrival date at that post. The second section detailed the transaction particulars of the goods consignment. It also permitted the addition of multiple invoices, bills, or challans to each e-consignment. If the consignment arrived at a different check post than initially designated, or if the vehicle changed during transit, the driver would inform the check post authorities. In these instances, the authorities would update the token information and permit the consignment to proceed.

An official at the designated check post would verify the e-consignment token. If no discrepancies were found, the transporter was permitted to pass.

Goods Movement Tracking Under the GST System

Upon the introduction of GST, an interim tracking mechanism was in place until the Kerala commercial tax department formally announced the State E-Way Bill system, effective January 11, 2018. Under this temporary arrangement, goods carriers were mandated to carry digitally downloaded forms: GST KER 1 for individual consignments, GST KER 2 for parcel deliveries, and GST KER 3 for goods transported for personal use. These forms were subject to inspection by GST officers during transit upon request.

GST KER 1 functioned as a declaration form for suppliers engaged in goods movement. It required invoice details including vehicle number, supplier, consignee, goods type, quantity, tax rate, and Goods and Service Tax Identification Number (GSTIN). This form was submitted online.

GST KER 2 served as a distinct declaration for parcel movements entering Kerala. GST KER 3 was a declaration form that individuals transporting goods for personal consumption, not resale, had to generate and carry with their conveyance. It required vehicle details and a mobile number for single-use verification.

E-Way Bill Generation Requirements on the NIC Portal for Kerala Residents

Individuals planning to transport goods valued over Rs. 50,000 within Kerala must register on the common eway bill portal to begin generating E-Way Bills. As of April 1, 2018, E-Way Bills are compulsory for all goods entering or leaving Kerala.

While the Kerala commercial tax department initially mandated the E-Way Bill system within the state from January 11, 2018, the NIC portal's homepage later indicated, as of March 28, 2018, that E-Way Bill generation for intrastate movement within Kerala was 'not available.'

A new Notification No. 10/2024-State Tax, issued on December 27, 2024, stipulates that effective January 1, 2025, registered individuals must provide details in Part A of Form GST EWB-01 before commencing any intrastate goods movement exceeding Rs. 10 lakhs in consignment value.

Responsibility for E-Way Bill Generation

The person responsible for the conveyance transporting goods must carry E-Way Bills only if the consignment's value surpasses Rs. 50,000. Key considerations for determining consignment value include:

This value encompasses IGST or CGST & SGST, as applicable. However, it excludes the value of any exempt goods carried in the conveyance, particularly when the bill covers both taxable and exempt supplies.

Sellers are obligated to generate E-Way Bills before dispatching goods. These bills, whether in physical or electronic format, must be carried by the person in charge of the consignment for delivery to the buyer's location.

E-Way Bills are also required to be generated in other scenarios, specifically by:

• The recipient, buyer, or consignee must generate an E-Way Bill when procuring goods from an unregistered seller.
• Transporters: If multiple orders are carried in a single vehicle, and the combined consignment value exceeds Rs. 50,000 (even if individual orders are below this threshold), E-Way Bills (EWB-01) must first be generated for each individual invoice. Subsequently, a consolidated E-Way Bill (EWB-02) is created for the entire consignment.

Registering for E-Way Bills on the NIC Portal

All individuals required to use E-Way Bills must complete a one-time registration on the official E-Way Bill portal. GST taxpayers and registered transporters should visit the E-Way Bill portal, navigate to the 'Registration' tab on the homepage, select 'e-Way Registration,' and finalize the registration process. This will provide them with a unique user ID for portal access. For transporters not registered under GST, particularly those in the fragmented logistics sector with small to medium-sized operations and turnovers often below the GST registration threshold, enrollment on the E-Way Bill portal is required as per Section 35(2) of the CGST Act.

When goods are received from an unregistered supplier, the recipient is responsible for generating the E-Way Bill. The process involves visiting the E-Way Bill portal, clicking 'Registration' on the homepage, then 'e-Way Registration,' and completing the necessary details. Upon successful registration, a unique user ID will be issued for logging in. Further details on the registration steps for the E-Way Bill portal are available.

Methods for E-Way Bill Generation in Kerala

E-Way Bills can be generated through the official online portal. Detailed instructions for online E-Way Bill generation are accessible. Additionally, E-Way Bills can be managed and created via SMS; users must send the appropriate SMS code to a registered mobile number provided by the Kerala commercial tax department. Learn how to use this SMS facility to manage E-Way Bills. A dedicated Android application is also available for E-Way Bill functionalities. API integration capabilities are being offered to facilitate seamless integration of business billing software with the government portal, ensuring compliance with E-Way Bill regulations.