The e-way bill is a new procedure introduced to curb tax evasion under GST, requiring registered individuals to generate it for consignment values exceeding ₹50,000. Key rules include the generation of e-way bills by consignors or transporters, communication of acceptance by the recipient, and responsibilities of transporters in handling multiple consignments. The government aims to reduce human intervention and minimize penalties during the initial phase of implementation.

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E-way bill rules and
compliance under GST
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2. What is an e-way bill?
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- The Electronic Way (e-way) bill is the new procedure introduced by the
government to curb the tax evasion taking place under the current value added
tax (VAT) laws.
- The e-way bill shall unify all these with a standard documentation procedure
under the Goods and Services Tax (GST) regime.
- As per the draft rules issued recently, every registered person who causes
movement of goods, whether interstate or intrastate, is required to generate
an e-way bill when the consignment value of the goods is more than
Rs.50,000.

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• An e-way bill furnishes information relating to the goods being moved.
Movement of goods may be:
o In relation to a supply
o For reasons other than supply
o Due to inward supply from an unregistered person

5. How to generate an e-way bill
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• A registered person shall furnish information relating to the transported goods
in Part A of Form GST-INS-01.
• The registered person may also upload the tax invoice he issues in Form
GST-INV-01 to auto populate Part A of the form.
• Thereafter, the consignor or the consignee shall furnish details in Part B of
Form GST-INS-01 and generate the e-way bill.
• Else the registered person shall furnish the transporter’s information in Part B,
and the transporter shall generate the e-way bill himself based on the
information furnished in Part A.
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• Upon generation of an e-way bill, a unique e-way bill number (EBN) shall be
made available to the supplier, recipient, and transporter.
• The recipient must communicate his acceptance or rejection of the
consignment. If no communication is received within 72 hours, it will be
deemed accepted
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8. Responsibility of the
transporter
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• If the e-way bill is not generated and the consignment value of goods is
more than Rs.50,000, the transporter may furnish the needed information
in Form GST-INS-01 himself.
• In the case of multiple consignments by the transporter in one
conveyance, the transporter shall generate a consolidated e-way bill by
furnishing all EBNs in Form GST-INS-02.
• In the case of multiple conveyances, the transporter shall generate a new
e-way bill for each change in transit specifying the mode of transport
before the transfer occurs.
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10. Validity of an e-way bill
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11. The validity of the bill shall depend on the distance the goods are
transported:

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Responsibility of the person
in charge of conveyance

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The person in charge of the conveyance shall carry:
• A copy of the e-way bill or EBN, physically or mapped to a Radio
Frequency Identification Device (RFID)
• Invoice, bill of supply, or delivery challan as applicable
The commissioner may require a class of transporters to obtain a unique
RFID, to embed the RFID onto the conveyance, and to map every e-way bill
to the RFID before moving the goods.
Instead of an e-way bill, in certain circumstances the person in charge of
conveyance may carry:
• Tax invoice of bill of supply or bill of entry
• A delivery challan when goods are transported other than by way of
supply

14. Verifying documents and
inspecting goods
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• The authority, approval, or permission of the commissioner must be
obtained before any conveyance can be intercepted or physically verified,
or before an e-way bill or EBN in physical form is verified.
• Physical verification can only occur once during the entire transit period
unless specific information is received indicating the need for another
inspection.
• A summary of the inspection must be recorded online in Part A of Form
GST-INS-03 by the proper officer within 24 hours of the inspection. The
final report must be submitted in Part B within three days of inspection.
• If a vehicle is intercepted and detained for more than 30 minutes, the
transporter may note the delay in Form GST-INS-04.
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16. Conclusion
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• The government has given serious thought to these rules, with the
motive to reduce human intervention and eliminate officer discretion.
• However, it remains to be seen how the small transporters and SMEs
cope with this scale of digitization.
• Revenue Secretary Hasmukh Adhia has promised that the government
won’t be overly harsh in the initial stages of e-way and shall only observe
the behavior of the transporters.
• Thus, penalties for non-compliance will not be part of the process from
day one but will eventually be instituted

18. Thank You
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