Comprehensive Guide to E-Way Bill Generation, Cancellation, and Vehicle Verification Under GST: Advanced FAQs
The Goods and Services Tax (GST) e-way bill system is an essential part of the tax compliance landscape, ensuring smooth transport and movement of goods across India. In the earlier series of FAQs, we discussed topics ranging from basic registration to transport-related updates. Now, we delve into the advanced aspects of the e-way bill system—covering essential topics such as cancellation, verification, and vehicle verification and miscellaneous details. This FAQ series aims to address frequently encountered concerns that arise after the e-way bill is generated, helping businesses comply with the regulations more effectively. Read on to understand more about e-way bill cancellation, vehicle verification, and other essential procedures under GST.
1. Can an E-Way Bill Be Deleted or Cancelled After It Has Been Generated?
No, an e-way bill cannot be deleted once generated. However, it can be cancelled by the person who generated it within 24 hours of its creation. Cancellation is permissible only if:
- The goods are not transported at all.
- The goods are transported in a manner different from what is specified in the e-way bill.
Once an e-way bill is verified by the proper officer, cancellation is not allowed.
2. Under What Circumstances Can an E-Way Bill Be Cancelled?
An e-way bill can be cancelled in the following scenarios:
- When the transportation of goods does not occur as intended.
- When the details in the e-way bill do not align with the actual transportation.
It must be noted that cancellation is restricted to within 24 hours from the time of generation and is prohibited if the e-way bill has been verified by authorities.
3. Is an E-Way Bill Necessary During Transit or Storage in a Warehouse?
Yes, a valid e-way bill is essential for the movement of goods, including when the goods are stored temporarily at a transporter’s warehouse or godown, even if the godown is located in the same city or town as the recipient. The e-way bill ensures compliance until the goods are delivered to the recipient.
4. How Can a Taxpayer Identify and Respond to E-Way Bills Generated on Their GSTIN by Others?
A taxpayer or recipient can verify e-way bills generated on their GSTIN by accessing the GST portal. The following methods are available:
- Dashboard View: Log into the GST portal to see a list of all e-way bills associated with your GSTIN.
- SMS Notifications: Receive daily updates on e-way bill activities via SMS.
- Rejection Option: Use the rejection feature on the portal to reject specific e-way bills within 72 hours or before the goods are delivered, whichever is earlier.
- Reports: Access detailed reports under the “EWBs by other parties” section to monitor e-way bills created by other persons.
Failure to accept or reject the e-way bill within the stipulated timeframe results in deemed acceptance as per GST regulations.
5. What Is a Consolidated E-Way Bill and When Is It Used?
A Consolidated E-Way Bill (CEWB) is a document designed to simplify the transportation process when multiple consignments are being transported in a single vehicle. It consolidates multiple individual e-way bills into a single document, allowing the transporter to carry one CEWB instead of multiple e-way bills for various consignments in the same conveyance.
6. Who Has the Authority to Generate a Consolidated E-Way Bill?
A Consolidated E-Way Bill can be generated by the transporter responsible for moving multiple consignments in one vehicle. This simplifies the documentation process by combining all individual e-way bills into a single consolidated document for that trip.
7. Does a Consolidated E-Way Bill Have Its Own Validity Period?
No, a Consolidated E-Way Bill does not have a separate validity period. It acts as a trip sheet containing details of the individual e-way bills, each of which has its own validity period. The consignments listed in the CEWB must reach their respective destinations within the validity period specified in their individual e-way bills.
8. What Steps Should Be Taken If the Vehicle Number Needs to Be Changed for a Consolidated E-Way Bill?
If the vehicle number changes after a Consolidated E-Way Bill have been generated, the transporter can update the CEWB using the “Regenerate CEWB” option under the “Consolidated EWB” menu. This allows the new vehicle number to be linked to the existing CEWB while keeping the individual e-way bills unchanged. The updated CEWB must be carried with the new vehicle, and the old CEWB becomes invalid.
9. Can a Consolidated E-Way Bill Include Deliveries to Multiple Destinations Before Reaching Its Final Destination?
Yes, a Consolidated E-Way Bill (CEWB) can include multiple consignments to be delivered to various locations enroute to the final destination. For example, if a CEWB contains 10 individual e-way bills, with 3 consignments destined for location Y and 7 for location X, the transporter can deliver the 3 consignments at location Y and continue with the remaining 7 to location X using the same CEWB. Alternatively, separate CEWBs can be generated for each destination to facilitate the process.
10. How Can a Consignor Authorize a Transporter, E-Commerce Operator, or Courier Agency to Generate Part-A of the E-Way Bill?
The authorization for generating Part-A of the e-way bill by a transporter, courier agency, or e-commerce operator is based on mutual agreement between the consignor and the respective party. The GST department assumes that the consignor has provided the necessary authorization if Part-A is filled by these entities.
11. How Should an E-Way Bill Be Managed When Goods Are Moved Using Public Transport?
When goods are transported via public transport, the responsibility for generating the e-way bill lies with the person initiating the movement of the goods. In case of verification by authorities, the person must provide the e-way bill number to the proper officer. Physical possession of the e-way bill document is not mandatory, as long as the e-way bill details can be retrieved electronically.
12. What Constitutes the Consignment Value Under GST?
- Central tax, State tax, Union Territory tax, Integrated tax, and Cess, if applicable.
- It excludes:
- The value of exempt supplies if both taxable and exempt goods are included in a single invoice.
- Freight charges levied separately by the transporter for the movement of goods.
13. Is the Railway Required to Carry the E-Way Bill During the Movement of Goods?
No, the railway is not required to carry an e-way bill along with the goods during transportation. However, it must carry a copy of the invoice, delivery challan, or bill of supply. Additionally:
- The e-way bill must be presented at the time of delivery of goods.
- The railway cannot release the goods to the recipient unless the e-way bill is produced.
- The term “transported by railways” does not include the leasing of parcel space by the railways for the purpose of e-way bill compliance.
14. Should Transporters Generate E-Way Bills for Consignments Below ₹50,000 When the Total Value in the Vehicle Exceeds ₹50,000?
Currently, under GST Rule 138(7), transporters are not required to generate e-way bills for individual consignments valued below ₹50,000, even if the total value of goods in a single vehicle exceeds ₹50,000. This provision will apply only after the rule is officially notified. Until then, transporters can continue without generating e-way bills for such smaller consignments.
15. Why Am I Receiving Alerts When My E-Way Bill Invoice Value Exceeds ₹10 Crores?
If the total invoice value on an e-way bill exceeds ₹10 crores, the system sends a pop-up notification and an SMS alert to the e-way bill generator. This is to address any potential errors, such as entering an abnormally high value due to a typo. These alerts allow the user to verify and correct or cancel the e-way bill if necessary, ensuring accurate reporting.
16. Is an E-Way Bill Required for Goods Transported Under Customs Seal?
No, goods being transported under customs seal are exempt from the requirement of generating an e-way bill. Such movements are governed by customs regulations rather than GST compliance rules.
17. Are E-Way Bills Required for Goods Moving to or From Nepal or Bhutan?
Movements of goods in transit to or from Nepal and Bhutan are exempt from the e-way bill requirement. These movements are governed by international transit agreements and do not fall under the scope of GST e-way bill rules.
18. Do I Need an E-Way Bill for Tractors Driven to My Premises Without a Motorized Vehicle?
Yes, an e-way bill is required for transporting tractors, even if they are driven directly to your premises and not transported on a motorized conveyance. In such cases, you must use a temporary identification number or any other identifiable mark of the tractor in the vehicle details section while generating the e-way bill.
19. What Is the Procedure for Generating E-Way Bills When the Recipient Is Unknown at Dispatch?
If the recipient’s details are unknown at the time of dispatch, as in cases where goods are sent for distribution to multiple consignees (e.g., FMCG companies supplying to retail stores), a delivery challan must be used for generating the e-way bill. The movement is considered on behalf of oneself, not as a supply. All rules governing delivery challans and e-way bills must be followed in such scenarios.
20. How Should the Value Be Determined in an E-Way Bill When Goods Are Transported on a Lease Basis?
In cases where goods are transported on a lease basis, the value to be declared in the e-way bill should be determined as per Explanation 2 of Rule 138(1) of the CGST Rules. This means the value of the goods being transported, not just the leasing charges, must be mentioned in the e-way bill.
21. How to Handle Transportation of Expired Stock That Has No Commercial Value?
Even if expired stock has no commercial value, e-way bills are mandatory for their movement. Such transportation is categorized as movement for purposes other than supply. In these situations, a delivery challan should be used as the basis for generating the e-way bill.
22. In Cases Where an Invoice Includes Both Goods and Services, How Should the Consignment Value Be Determined?
When an invoice pertains to both goods and services, the consignment value to be declared in the e-way bill should be based solely on the value of goods being transported. The HSN code and other details in Part A of the e-way bill should also pertain only to the goods in transit, as services are not part of the physical movement
23. What Does Blocking of the E-Way Bill Generation Facility Mean?
Blocking of the e-way bill generation facility refers to a restriction imposed on a taxpayer for generating e-way bills. This occurs if the taxpayer fails to file GSTR-3B returns for two or more consecutive tax periods. As per Rule 138E of the CGST/SGST Rules, 2017, GSTINs of such taxpayers are blocked from being used in e-way bills as consignor or consignee.
24. How Can the E-Way Bill Generation Facility Be Unblocked?
Unblocking of the e-way bill generation facility occurs when the defaulting taxpayer files the pending returns, reducing the default period to less than two consecutive tax periods. Additionally, the jurisdictional GST officer can manually unblock the facility on the GST portal upon receiving and approving a representation from the taxpayer.
25. Since When Has the Blocking/Unblocking of E-Way Bill Generation Been Enforced?
The blocking of the e-way bill generation facility has been effective from December 1, 2019. As per Rule 138E of the CGST/SGST Rules, 2017, users are restricted from generating e-way bills for a GSTIN (either as consignor or consignee) if it is ineligible due to non-compliance.
26. Which Returns Are Considered for Determining Blocking or Unblocking of E-Way Bill Generation?
The blocking or unblocking of the e-way bill generation facility is based on the filing status of Form GSTR-3B, which is mandatory for regular taxpayers. Non-filing of this return triggers the blocking mechanism.
27. Under What Circumstances Is the Blocking of E-Way Bill Generation Facility Activated?
As per Rule 138E of the CGST/SGST Rules, 2017, the blocking of the e-way bill generation facility is initiated when a taxpayer fails to file GSTR-3B returns for two consecutive tax periods. For instance, if GSTR-3B for January and February remains unfiled, the blocking of e-way bill generation will be enforced starting from March.
28. Can a Recipient Generate an E-Way Bill for a Supplier Whose GSTIN Is Blocked?
No, when a GSTIN is blocked, it cannot be used to generate an e-way bill, either as a supplier or as a recipient. Hence, a recipient cannot generate an e-way bill by listing a blocked GSTIN as the supplier.
29. Is It Possible for a Transporter to Generate an E-Way Bill for a Blocked GSTIN?
No, transporters are prohibited from generating e-way bills for any GSTIN that is blocked, whether the blocked GSTIN is acting as the supplier or the recipient in the transaction.
30. How Is the Blocking of GSTIN in the E-Way Bill System Implemented?
Blocking occurs when a taxpayer fails to file GSTR-3B for two or more consecutive tax periods. If the taxpayer subsequently files the returns to reduce the default period to less than two tax periods, the GSTIN status is updated on the E-Way Bill Portal the following day, and the generation facility is restored. Alternatively, the jurisdictional officer can unblock the GSTIN manually after reviewing the taxpayer’s request on the GST Portal.
31. What Is the Process for Unblocking GSTIN in the E-Way Bill System?
Unblocking happens automatically when a taxpayer files the overdue GSTR-3B returns, reducing the default period to less than two tax periods. The system updates the return status on the E-Way Bill Portal by the next day, enabling e-way bill generation. Manual unblocking can also be done by the jurisdictional officer upon receipt of a representation from the taxpayer.
32. How Long Does It Take for Return Filing Status to Reflect on the E-Way Bill Portal?
Once the taxpayer files their GSTR-3B returns on the GST Portal, the system automatically updates the blocking status on the E-Way Bill Portal by the next day, enabling the generation of e-way bills.
33. What Should a Taxpayer Do If Blocked from E-Way Bill Generation Despite Filing the Latest Returns?
If a taxpayer’s GSTIN remains blocked even after filing the required GSTR-3B returns, they can log in to the E-Way Bill Portal and use the “Search Update Block Status” option to manually refresh the GSTIN status. If the GSTIN is still blocked, they can use the “Update” feature to fetch the latest status from the GST Portal. If the issue persists, they should contact the GST Helpdesk or file a grievance.
34. What Happens to E-Way Bills Already Generated Before a GSTIN Is Blocked?
E-way bills generated before the GSTIN was blocked remain valid for the transportation of goods. These bills can be used until their expiry to complete the movement of goods to the intended destination.
35. Can Vehicle Details and Validity Extensions Be Updated for E-Way Bills Linked to a Blocked GSTIN?
Yes, transporters and taxpayers can update vehicle details, transporter information, and extend the validity of e-way bills linked to a blocked GSTIN if required.
36. What Impact Does Blocking/Unblocking Have on Transporters?
Transporters fall into two categories:
- Transporters Enrolled Only on the E-Way Bill Portal: These are not affected by blocking since they do not file GSTR-3B returns.
- Transporters Registered on the GST Portal: If their GSTIN is blocked, they cannot be listed as consignor, consignee, or transporter in any e-way bill or update transporter details until the GSTIN is unblocked.
37. Will the System Prevent Updates to Transporter IDs If the Transporter’s GSTIN Is Blocked for E-Way Bill Generation?
Yes, if a transporter registered under GST has their GSTIN blocked for failing to file GSTR-3B for two consecutive tax periods, the system will prevent updates to their Transporter ID in the e-way bill. However, transporter IDs of enrolled transporters (those without GSTIN) can still be updated without restrictions.
38. What Is Meant by Vehicle Number Verification in the E-Way Bill Portal?
The e-way bill portal is integrated with the Vahan System of the Transport Department to validate vehicle numbers. If the entered vehicle number is not found in the Vahan database, an alert message will be displayed. Eventually, vehicle numbers missing from the Vahan system will be restricted from being used for e-way bill generation.
39. Why Am I Receiving an Alert When Entering a Vehicle Number in the E-Way Bill Portal?
An alert is generated when the entered vehicle number is not found in the Vahan database. To resolve this, you must contact your Regional Transport Office (RTO) to update the vehicle registration details. Failure to do so may result in the vehicle number being barred from e-way bill generation.
40. What Should I Do If I Receive a Message That a Vehicle Is Registered in Multiple RTOs?
This message indicates that the vehicle’s details appear in multiple RTO records. You should contact the appropriate RTO to update and clarify the registration details. If this step is not taken, the vehicle number may eventually be deemed invalid for e-way bill purposes.
41. Why Am I Receiving an Alert Despite My Vehicle Having a Valid Registration Certificate?
If a validly registered vehicle still triggers an alert in the e-way bill portal, it suggests discrepancies between the e-way bill system and the Vahan database. To rectify this, contact your RTO to ensure your vehicle’s information is updated in the Vahan system. Once corrected, the e-way bill portal will reflect the updated details.
42. Can Vehicles with Temporary Registrations Be Used for E-Way Bill Generation?
Vehicles with temporary registrations can be used for e-way bill generation. Enter the temporary registration number, beginning with “TR,” into the system. However, it is advisable to update the registration to a permanent number at the earliest to avoid future issues.
43. What Should I Do If My Vehicle Appears in the Vahan System but Not in the E-Way Bill Portal?
If your vehicle number is visible in the Vahan system but unavailable on the e-way bill portal, contact the E-Way Bill Helpdesk to lodge a grievance. Provide the necessary details, including the vehicle number, for resolution.
Stay ahead of the curve and ensure seamless compliance with the ever-evolving e-way bill regulations under GST. This comprehensive guide provides you with all the essential details to manage e-way bill generation, cancellation, vehicle verification, and more with ease. By understanding and following these steps, your business can avoid costly mistakes, streamline logistics operations, and stay fully compliant with GST laws.
For businesses aiming for long-term success, it’s crucial to stay informed about the latest updates and best practices in GST compliance. At TaxGroww, we offer expert guidance, actionable insights, and timely updates on all things related to GST, e-way bills, and tax laws. Follow us for accurate, in-depth information to keep your business compliant and tax-efficient, ensuring a smooth path to success in an ever-changing regulatory landscape.