Rules & Regulations of e-Way Bill

Tax evasion was always a problem, with numerous checkpoints to monitor the flow of goods and ensure that taxes were paid. For this reason, freight forwarders had to submit documents such as invoices, road permits and waybills as evidence, which are frequently checked at check posts.

The e-way billing system has been introduced to eliminate all this and provide seamless movement of goods. Under this system, the e-way Bill, an electronically generated document from a unified portal, is mandatory for the person overseeing the conveyance. This article will explore all the rules and regulations related to e-way bills.

e-Way Bill Rules and Regulations

Every registered person who is transferring goods valued at more than Rs.50,000 has to submit the details of goods in Part A of the e-Way Bill (FORM GST EWB-01) to the e-way bill portal before leaving for such a journey. The transport could be

• Due to supply; 
• reasons other than supply or
• due to an inbound supply from an unregistered person, 

Rules for Documents to be Carried

Documents required to be carried at the time of transportation:

(a) Invoice, delivery challan or bill of supply.

(b) Duplicate of the e-way bill or its number must be physically available or linked to an Radio Frequency Identification Device (RFID) as the commissioner prescribes.

A registered user must upload an e-invoice issued in FORM GST INV-1 after that Invoice Reference Number can be obtained which is used to show the appropriate officer. e-way bill software can be used to manage and expedite this process.

Verification of Documents

Verification of documents regarding the goods transported interstate or intrastate is important. For this purpose a commissioner or an official working under him may have a right to check any vehicle and verify the e-way bill or its number.

Additionally, a commissioner can supervise the installation of Radio Frequency Identification Device (RFID) readers used for vehicle verification and when an e-way bill is connected to this device, it improves the efficiency and accuracy of an e-way bill software.

Rules for the Inspection and Verification

An online summary report of every inspection performed on items in transit is recorded and entered in Part A of FORM GST EWB-03 within 24 hours after the inspection. Furthermore a final report must be submitted in Part B of FORM GST EWB-03 in case a physical inspection of a vehicle’s cargo has occurred at a specific state or location during transportation. 

Vehicle Detention Rules

Transporters can use FORM GST EWB-04 to report information on the common portal when a vehicle is stopped and left to wait for 30 minutes or more.

Other Key Rules

An e-Way Bill does not need to be generated when the value of a consignment is less than Rs.50,000, even if the combined value of multiple consignments exceeds ₹50,000.

When moving products within a state or Union Territory, e-Way Bills were optional if the distance travelled was less than 10 km. The current edition has increased this distance restriction to 50 kilometres.

An e-Way Bill will be automatically accepted by the recipient if no notification was received within the prescribed 72 hours requesting acceptance or rejection. e-Way bills must now be approved or rejected within 72 hours of delivery, whichever comes first.

The validity is one day for up to 20 KM; one extra day is added for every 20KM or a fraction of a mile beyond that. The last day’s midnight marks the end of the validity period.

One of the best examples of how technology may improve our lives is the e-Way Bill system, which is still essential in the transition to a more digital and productive economy. Implementation of these rules may expect much easier and transparent trade and commerce across the country .

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