Complete Analysis of EWAYBILL

Who shall furnish detail

Every registered person who causes movement of goods shall furnish information relating to the said goods in PartA of FORM GST EWB-01, electronically, on the common portal, before commencement of such movement. In case of supply by an unregistered person to a registered recipient, then the movement shall be said to be caused by registered recipient if such recipient is known at the time of commencement of the movement of of Goods.

When to submit
If the consignment value of such goods exceeds 50,000/-. Option is given to generate and carry e-way bill even if the consignment value is less than 50,000/-. If movement is in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person.

When not required to Generate E-Way Bill
Generation of e-way bill is not required in the following cases:
1. In case where the goods are transported for a distance of less than 10 Kms intra-state from the place of business of the consignor.
2. Where the goods being transported are specified in annexure to the Notification no 27/2017.
3. Where the goods are being transported by a non-motorized conveyance;
4. Where the goods are being transported from the Port, Airport, Air Cargo Complex and Land Customs Station to an Inland Container Depot or a Container Freight Station for clearance by Customs; or
5. In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the Goods and Services Tax Rules of the concerned State.

Who should enter details in Part B and Generate the E-way bill
 If goods are transported by the registered person himself as a consignor or as a consignee through own conveyance or a hired one or by railways or by air or by vessel The consigner/ consignee as the case may beIf goods are handed over to a transporter for transportation by road The registered person shall only furnish the information relating to the transporter in Part B and the e-way bill shall be generated by the transporter. When movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter. The unregistered person or the transporter may, at their option, generate the e-way bill.

When details of conveyance not required
Details of conveyance in Part B is not required to be provided if goods are transported for a distance of less than ten kms within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation.

EBN Number 
Upon generation of e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

Acceptance or rejection of e-way bill
The details of e-way bill generated shall be made available to the recipient, if registered who shall communicate his acceptance or rejection of the consignment. Where no communication is made within 72 hours, then it shall be deemed that he has accepted the said details.

Transferring goods in transit
If a transporter is transferring goods from one conveyance to another in the course of transit then he shall update the details of conveyance in the e-way bill before such transfer and further movement of goods.

 Multiple consignments
 If multiple consignments are intended to be transported in one conveyance, then the transporter may indicate the serial number of e-way bills of each consignment and a consolidated e-way bill may be generated by him prior to the movement of goods.

If goods not transported as per e-way bill generated
 Where an e-way bill has been generated, but goods are either not transported or are not transported as per the details furnished in the e-waybill, then the e-way bill may be cancelled within 24 hours of generation of the e-way bill.

Validity of e-way bill
 Any e-way bill which is generated shall be valid in every State and Union territory. However, the periodicity of validity shall be as under:
1. Upto 100 Km - 1 day
2. For every 100 km or part thereof thereafter - One additional day the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty four hours. In Case of Exceptional Circumstances, If goods cannot be transported within the validity period of the e-way bill due to circumstances of an exceptional nature, then the transporter may generate another e-way bill after updating the details in Part B.

Documents to be carried
The person in charge of a conveyance shall carry the following:
1. The invoice or bill of supply or delivery challan, as the case may be; and
2. A copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Mandatory device in the conveyance
Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance for mapping the e-way bill to the said device.

Interception of any conveyance
The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intrastate movement of goods. If a vehicle has been intercepted and detained for a period exceeding thirty minutes, then transporter may upload the said information in FORM GST EWB-04 on the common portal.


Report of inspection
A summary report of every inspection of goods in transit shall be recorded online by the proper officer within 24 hours of inspection and the final report shall be recorded within 3 days of such inspection.

Physical verification of goods
No further physical verification of the said conveyance shall be carried out again in the state, if the physical verification of goods being transported has been done during transit at one place within the State or in any other State, unless specific information relating to evasion of tax is made available subsequently. 

Utilization of Cash from Electronic Cash Ledger

The utilization of Cash from Electronic Cash Ledger is done on the basis of following principles:

1. RULE 1: The amount of Cash deposited for CGST/SGST/UTGST/IGST/Cess in the cash ledger can be used for payment of CGST/SGST/UTGST/IGST/Cess liabilities respectively. No inter head adjustment is allowed for major heads.

2. RULE 2: Cash deposited under the minor head i.e. Tax/Interest/Fee/Penalty/Others in the cash ledger can be utilized for payment of Tax/Interest/Fee/Penalty/Others liabilities respectively of the same major head. No minor head adjustment is allowed.

3. RULE 3: Amount under Cash Ledger will be used in the following priority order:

(a) self-assessed tax, and other dues related to returns of previous tax periods;

Previous month tax liability covers:

a. Tax liability reported but not paid

b. Interest/penalty/fee arising out of previous month return period declarations

(b) self-assessed tax, and other dues related to return of current tax period;

Current month tax liability includes:

a. Liability for invoices and amendments uploaded for previous months

b. ITC reversal due to mismatch of invoice (Reversal under Section 42 (5) & (6) for (M-2) Tax Period)

c. Tax amount increased in M Tax period as a consequence of reduction of liability by supplier in (M-2) tax period but without corresponding reduction in ITC by the receiver (Section 43(6))

d. Liability for invoices and other consolidated declarations uploaded for current month.

(c) Any other amount payable under the Act or the rules made thereunder including the demand determined under section 73 or 74.

4. RULE 4: The amount allowed to be entered for utilization of cash can’t be more than the amount of balance available under the respective major/minor head of tax in Cash Ledger.

Utilization of Credit from Input Tax Credit

The utilization of credit from Input Tax Credit is done on the basis of following principles:

RULE 1: The amount of input tax credit will be available for utilization in following priority:

(a) IGST input tax credit shall first be utilised towards payment of IGST liability and the amount remaining, if any, may be utilised towards the payment of CGST, SGST/UTGST liabilities in that order

(b) CGST input tax credit shall first be utilised towards payment of CGST liability and the amount remaining, if any, may be utilised towards the payment of IGST liability;

(c) SGST input tax credit  shall first be utilised towards payment of SGST  liability and the amount remaining, if any, may be utilised towards payment of IGST liability  if no CGST credit is available.

(d) UTGST input tax credit shall first be utilised towards payment of UTGST  liability and the amount remaining, if any, may be utilised towards payment of IGST liability if no CGST credit is available.

(e) CGST input tax credit shall not be utilised towards payment of SGST/UTGST liabilities and

(f) SGST/UTGST input taxed credit shall not be utilised towards payment of CGST liabilities.

RULE 2: ITC cannot be utilized for payment of reverse charge liabilities.

RULE 3: ITC can be utilized for payment of tax only.

RULE 4:  ITC can’t be utilized for payment of TDS/TCS/interest/penalty/fee/others.

RULE 5: ITC (Provisional ITC) availed for the current tax period can be utilized only for return related liability of the current tax period. Once, recipient files Valid GSTR-3/5, then any such unutilized/excess ITC would be available for payment of other liabilities as well.   

RULE 6: Balance ITC under credit Ledger (other than Provisional ITC for the current tax period) will be used in the following order:

a. Self-assessed tax related to returns of previous tax periods;

Note: Previous month tax liability covers tax liability reported but not paid

b. Self-assessed tax, related to return of current tax period;

Note: Current month tax liability covers:

i) Liability for invoices uploaded for previous months

ii) ITC reversal due to mismatch of invoice in M tax period (say June) for (M-2) (say April) Tax Period

iii) Tax amount increased in M Tax period as a consequence of reduction of liability by supplier in (M-2) tax period but without corresponding reduction in ITC by the receiver (Section 43(6))

iv) Liability for invoices uploaded for current month

c. Any other tax amount payable under the Act or the rules made thereunder including the demand determined under section 73 or 74.

RULE 7: Provisional ITC for current tax period or ITC for previous tax periods cannot be utilized for payment of liability for the current tax period, if liability arising of return for previous tax period is unpaid.

Previous month tax liability covers:

a. Tax liability reported but not paid

b. Interest/penalty/fee arising out of previous month return period

RULE 8: The amount allowed to be entered for utilization of credit can’t be more than the amount of balance available in the credit/cash ledger.

RULE 9: A unique identification number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit or liability ledger and the same will be reflected in the corresponding ledgers of the taxpayer.

RULE 10: Credit availed on input CESS paid on inward supplies will be available for set-off against any output tax liability of Cess only.

There is no Inter head adjustment for Cess Input Tax Credit.

RULE 11: When the taxpayer utilizes the ITC against return related liability, System will adjust the provisional ITC first.