In the current VAT regime, the States have various check-posts on borders and highways to monitor the movement of goods. The officer can verify the goods and relevant documents to ensure that proper duties have been paid on said goods.
Movement of goods is the important aspect in indirect tax laws due to possibilities of tax evasion in this stage. In the GST regime, the government has prescribed the E-way Bill to monitor the movement of goods and ensure that the tax has been paid on the goods.
Movement of Goods Under GST – E-Way Bill Rules
E-way bill is an electronic way bill required for movement of goods under GST. The E-way contains the details of the movement of goods and it can be generated online on GST common portal. Under the GST law, the generation of E-way bill is mandatory for movement of goods of more than Rs. 50,000. Before commencement of transportation of goods, a unique e-way bill number is generated for every specific consignment and the GST officer can inspect the e-way bill at any time during the journey.
Mandatory Requirement of E-Way Bill
E-way bill is applicable for any movement of goods having consignment value of more than Rs. 50000.
Time of Generation of E-Way Bill
The E-way bill should be generated online before the commencement of movement of goods. Upon generation of E-way bill, a unique E-way bill number (EBN) shall be made available to the supplier, the transporter and the recipient on the GSTcommon portal. The government may provide facility to generate e-way bill through SMS.
Person Responsible for Generation of E-Way Bill – Supplier/Recipient or Transporter
Goods are Transported by Registered Person (Consigner or Consignee)
Where goods are transported by a registered person as a consigner or consignee in his own vehicle or hired, he may generate the E-Way bill in Form GST INS-I electronically on GST portal.
Goods handed over to Transporter without Generation of E-Way bill
Where an e-way bill is not generated by a registered person acting as a consigner or consignee and goods are handed over to the transporter, the consigner or consignee shall furnish the details of the transporter in Part-B of GST INS-I and the transporter shall generate the E-way bill.
Inward Supplies From Unregistered Person
If the supplier of goods is not registered under GST, the E-way bill can be generated either by the consignee or by the transporter.
Form Applicable for E-way – GST INS-1
The E-Way bill for movement of goods should be generated in Form GST INS-1. Part-A of this form contains the detail of goods and the Part-B contains detail of transporter.
E-Way Bill For Consignment Value of Less Than Rs. 50,000 – Optional
It is not mandatory to generate e-way if consignment value is less than Rs. 50,000. However, registered person or transporter can generate e-way bill at his option.
Multiple Consignment in One Vehicle
The Transporter shall also generate a consolidate E-Way bill in Form GST INS-2 electronically before movement of goods and separately indicate the serial number of e-way bills generated for each consignment.
Transfer of Goods From One Vehicle to Another in the Course of Transit
If the goods are transferred from once vehicle to another in the course of transit, a new e-way bill shall be generated electronically on GST portal before the transfer of such goods.
E-Way Bill Generated but Goods are not Transported
If an e-way bill is generated but goods are not transported, then the E-way bill can be cancelled within 24 hours of generation. However e-way bill can’t be cancelled if it has been verified in transit.
Validity Period of E-Way
|Distance (KMs)||Validity Period (counted from time of generation)|
|Upto 99 KM||1 Day|
|100-299 KM||3 Days|
|300-499 KM||5 Days|
|500-999 KM||10 Days|
|1000 KM or More||15 Days|
Documents to Be Carried By The Transporter (Person in Charge of Conveyance)
- Invoice, Bill of Supply or Deliver Challan
- A copy of E-Way Bill or E-Way Bill Number (EBN)
Inspection and Verification
- The authorized officer may intercept any conveyance to verify the goods, E-Way bill, and other documents.
- The officer shall record online summary report of inspection of goods in Part-A of Form GST INS-3 and final report in Part-B of such form.
- The department can’t conduct another physical verification of goods if the physical verification of such goods has already been done at any other place during transit. However, the department can conduct multiple physical verifications if there is any specific information about tax evasion.
- If the vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload this information in form GST INS-4.