68.3 EWB must be generated before commencement of movements of goods if consignment value > Rs.50,000

Question-1 [ICSI-P-J18-5(e)(i)-1]

What is e-way bill and when it is being required ? (1 mark)

Answer

Rule 138 of the CGST Rules, 2017,

RP who causes movement of goods of consignment value exceeding Rs.50,000

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall generate e-way bill in GST EWB-01, before commencement of such movement,

Question-1A [ICSI-E-D19-87-1]

Every registered person as per section 68 of CCST Act, 2017 who causes movement of goods of consignment value greater than ...................... whether for supply or otherwise or due to the inward supply from an unregistered person, shall before commencement of such movement, furnish the necessary information electronically on the portal in the prescribed form.

(A) Rs.50,000; (B) Rs.25,000; (C) Rs.1,00,000; (D) Rs.5,000

Quesiton-1B [ICSI-E-J19-O-84-1]

When a movement of goods is of more than ________ in value, the e-way bill must accompany the goods.

(A) Rs.20,000; (B) Rs.50,000; (C) Rs.1,00,000; (D) Rs.2,00,000

Question-2 [ICSI-E-D21-94-1]

As per Rule 138 of the CGST Rules, 2017 stipulates that E-way Bill under the GST laws required to be generated when the registered person causes movement of goods of the consignment in total of the value for more than Rs.50,000 whether .......................

(A) in relation to supply

(B) for reason other than supply

(C) due to inward supply from unregistered person

(D) All of the above

Quesiton-3 [ICSI-P-D19-3(d)-5] Delivery Challan

Badrinath Filters Ltd., a registered supplier of industrial air filters, is required to send from Mumbai (Maharashtra), a consignment of parts of air filters to be replaced under warranty at various client locations in Ahmedabad, Gujarat. The value of consignment declared in delivery challan accompanying the goods is Rs.52,000.

Badrinath Filters Ltd. is of the view that since movement of goods to Gujarat is caused due to reasons other than supply, e-way bill is not mandatorily required to be generated in this case.

You are required to examine whether the aforesaid view is correct.

Answer

The goods to be moved to another State for replacement under warranty is not a 'supply'.

However, Rule 138(1) of the CGST Act, 2017, inter alia, stipulates that every registered person who causes movement of goods of consignment value exceeding Rs. 50,000 :

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall, generate an electronic way bill (E-way Bill) before commencement of such movement.

Thus, in the given case, since the consignment value exceeds Rs.50,000, e-way bill is required to be mandatorily generated.

Therefore, the contention of Badrinath Filters Ltd. that e-way bill is not mandatorily required to be generated as the movement of goods is caused due to reasons other than supply, is not correct.

68.3.1 Meaning of Consignment Value of Goods

Question-1 [ICSI-P-J19-1(b)-5]

Amar Publishing House, registered under CGST Act, 20l7 in Delhi is engaged in printing and selling of books as well as trading of stationery items. It has provided following information of a single consignment which is to be supplied to a person in Jaipur (Rajasthan) :

(i) Value of exempted supplies of Rs.12,000 and value of taxable supplies of Rs.32,000 are indicated on tax invoice.

(ii) Value of goods to be sent to unregistered job worker on delivery challan having value of Rs.16,000.

Note: All amounts given above are excluding GST. Calculate the consignment value, for the purpose of generating e-way bill for Interstate supply of goods. Take rate of tax on taxable goods of IGST @ 12%. Legal provision explained in brief should form part of the answer

Answer

(a) Statutory Provision: As per Explanation 2 to Rule 138(1)

consignment value of goods = value determined u/s 15, declared in an invoice, a bill of supply or a delivery challan,

Includes central tax, State or Union territory tax, integrated tax and cess charged

Excludes value of exempt supply of goods where the invoice is issued for both exempt and taxable supply.

Determination of the value of consignment for E-way Bill

Question-1A [ICSI-I-N22-7(b)(ii)-2]

M/s Sakura Enterprises made an inter-State supply of taxable goods valued at Rs.47,500 and exempt goods valued at Rs.2,000. Rate of IGST for taxable supply was 6%. Determine, with brief reasons, whether e-way bill generation is mandatory for the above supply made by M/s Sakura Enterprises.

Answer

(a) Statutory Provision: As per Explanation 2 to Rule 138(1)

consignment value of goods = value determined u/s 15, declared in an invoice, a bill of supply or a delivery challan,

Includes central tax, State or Union territory tax, integrated tax and cess charged

Excludes value of exempt supply of goods where the invoice is issued for both exempt and taxable supply.

Determination of the value of consignment for E-way Bill

Since there is a movement of goods of consignment value exceeding Rs.50,000, M/s Sakura Enterprises is mandatorily required to issue e-way bill.

68.3.2 Situations where e-way bill must be issued even if consignment value < Rs.50,000

Question-1 [ICAI-F-M19-5(a)-5]

When is an e-way bill required to be generated?

Answer

(a) Rule 138 of the CGST Rules, 2017,

RP who causes movement of goods of consignment value exceeding Rs.50,000

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall generate e-way bill in GST EWB-01, before commencement of such movement,

Further, in the following situations, e-way bill needs to be issued even if the value of the consignment is less than Rs.50,000:

(i) Where goods are sent by a principal located in one State/UT to a job worker located in any other State/UT, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment.

(ii) Where specified handicraft goods are transported from one State/UT to other State/UT by a person who has been exempted from the requirement of obtaining registration u/s 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

Question-2 [ICAI-F-J21-4(b)(ii)-4]

Decide with reason whether e-way bill is required to be issued under CGST Act, 2017 in the following independent cases:

(a) Square Ltd., registered in Andhra Pradesh, sends goods to its job worker Cube & Co. in Karnataka, which is also registered under GST. Value of the consignment was Rs.45,000 (including GST).

(b) Mr. Bheeshma of Telangana started doing business in notified handicraft products as a casual taxable person. He got his first order of Rs.30,000 from Tamil Nadu which he transports. He is not registered under GST since he has a threshold limit of Rs.20 lakh.

Answer

(i) E-way bill is mandatorily required to be issued in case of inter-State transfer of goods by principal to job-worker, irrespective of the value of the consignment. In view of the same, e-way is mandatorily required to be issued in the given case.

(b) E-way bill is mandatorily required to be issued in case of inter-State transfer of handicraft goods by a person exempted from obtaining registration. In view of the same, e-way bill is mandatorily required to be issued in the present case.

68.4.5.1 Railways shall not deliver goods unless the e-way bill is produced at the time of delivery

Question-1 [ICSI-P-J21-1(d)(ii)-1]

No e-way bill is required if a Registered person from West Bengal purchases goods from Delhi valuing 1,12,000 (including tax) and carries the same with him in train. [T/F]

Answer

False. E-way bill is necessary. It has to be generated by either the supplier or the recipient either before or after the commencement of the movement of goods when goods are transported by railways.

68.6.2 from transporter’s POB to recipient’s POB for final delivery

Question-1 [ICAI-F-N20-7(b)-3]

"It is mandatory to furnish the details of conveyance in Part-B of E-way Bill."

Comment on the validity of the above statement with reference to provisions of E-Way Bill under CGST Rules, 2017.

Answer

The given statement is partially valid.

An e-way bill is valid for movement of goods by road only when the information in Part-B – which includes details of conveyance - is furnished.

However, the details of conveyance may not be furnished in Part-B of the e-way bill where the goods are transported for a distance of upto 50 km within the State/Union territory:

(a) from the place of business of the consignor to the place of business of the transporter for further transportation or

(b) from the place of business of the transporter finally to the place of business of the consignee.

Question-2 [ICSI-P-D21-O-5(b)-3]

A Consigner is to move goods from the Kochi (Kerala) to Noida (UP). He appoints transporter X for the movement of the goods. Transporter X moves the goods from Kochi to Bhopal (Madhya Pradesh). For completing the remaining journey from Bhopal to Noida transporter X hands over the goods to transporter Y. Thereafter goods are moved to the destination by transporter Y. Discuss the procedure to be followed with reference to E-way bill under GST Law on above transaction.

Answer

In this case only one e-way bill is required. Part A can be filled by the consigner and then the e way bill will be assigned by the consigner to transporter X. Transporter X will fill the vehicle details etc., in part B and will move the goods from Kochi to Bhopal.

On reaching Bhopal, transporter X will assign the said e-way bill to the transporter Y. Thereafter transporter Y will be able to update the details of Part B. Transporter Y will fill the details of his vehicle and move the goods from Bhopal to Chandigarh.

Question-2A [ICAI-I-N19-7(b)-5]

Mr. Shah, a consignor is required to move goods from Ahmedabad (Gujarat) to Nadiad (Gujarat). He appoints Mehta Transporter for movement of goods. Mehta Transporter moves the goods from Ahmedabad (Gujarat) to Kheda (Gujarat). For completing the movement of goods from Kheda (Gujarat) to Nadiad (Gujarat), Mehta Transporter now hands over the goods to Parikh Transporter.

Explain the procedure regarding e-way bill to be followed by consignor and transporter as per provisions of GST law and rules made thereunder.

Answer

In the given scenario, only one e-way bill is required to be issued.

Part A can be filled by either Mr. Shah or recipient of goods or Mehta Transporter on the appropriate authorisation.

Where the goods are transferred from one conveyance to another, the consignor or the recipient, who has provided information in Part A, or the transporter shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in Part B

Thus, on reaching Kheda, Mr. Shah or the recipient of the goods, who has filled Part A of the e-way bill, or Mehta Transporter can, before the transfer and further movement of goods, update the details of conveyance in Part B of the e-way bill.

Further, the consignor or the recipient, who has furnished the information in Part A, or the transporter, may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part B for further movement of the consignment.

Thus, on reaching Kheda, Mr. Shah or the recipient of the goods, or Mehta Transporter can assign the said e-way bill to Parikh Transporter who will thereafter update the details of conveyance in Part B.

However, upon updation of the details of the conveyance by Parikh transporter in Part B, Mr. Shah or recipient, as the case may be, who has furnished the information in Part A shall not be allowed to assign the e-way bill number to another transporter.

68.7 Consolidated e-way bill [CEWB] by Transporter

Question-1 [ICAI-I-M22-7b-3]

"One consolidated e-way bill can be generated for multiple invoices". Comment on the validity of the above statement with reference to GST law.

Answer

Statutory Provision

Rule 138(6) - After e-way bill has been generated as per rule 138(1) and where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

Conclusion

Multiple invoices cannot be clubbed to generate one e-way bill. If multiple invoices are issued by multiple consignor for movement of goods, multiple e-way bills have to be generated for each such invoices.

However as per rule 138(6), after generating all these e-way bills, one consolidated e-way bill can be prepared for transportation purpose, if goods are going in one conveyance.

Hence, the statement is invalid.

Question-2 [ICAI-F-M19-O-4(b)-4] [How to generate e-way bill for multiple invoices belonging to same consignor and consignee?]

Happy Company is a registered supplier of electric goods. It has three stores for electric goods in Jodhpur (Rajasthan) namely Ram Store, Shyam Store, Mohan Store. It receives an order for supply of electric goods worth Rs.1,40,000 (exclusive of GST @ 18%) from Kishan Sons of Bhopal (Madhya Pradesh). Happy Company found that order worth Rs.43,000 can be fulfilled from the company's Ram Store, order worth Rs.45,000 can be fulfilled from its Shyam Store and remaining goods worth Rs.52,000 can be sent from its Mohan Store. All three stores are instructed to issue separate invoices for the goods sent to Kishan Sons. The goods are transported to Kishan Sons in Bhopal in a single conveyance owned by Shiv Transporters.

You are required to advise Happy Company with regard to issuance of e-way bills as per the pro visions of the CGST Act, 2017.

Answer

Rule 138 of the CGST Rules, 2018 stipulates that e-way Bill is mandatorily required to be generated if the goods are moved, inter alia, in relation to a supply and the consignment value [including CGST, SGST /UT GST, IGST and cess charged] exceeds Rs.50,000.

Further, the FAQs on E-way Bill issued by CBIC clarify that if multiple invoices are issued by the supplier to one recipient, multiple e-way bills have to be generated - one e-way bill for each invoice. Each invoice is considered as separate consignment for the purpose of generating e-way bills.

In the given case, consignment value of goods supplied against separate invoices from Ram Store, Shyam Store and Mohan Store is Rs.50,740 [Rs.43,000 × 118%], Rs.53,100 [Rs.45,000 × 118%] and Rs.61,360 [Rs.52,000 × 118%] respectively. Thus, Happy Company is required to prepare 3 separate e-way bills since value of each invoice exceeds Rs.50,000.

Question-2A [ICSI-P-D20-2A(ii)-5]

Trident Beauty Cosmetics Ltd operating multiple wholesale outlets of cosmetic products in different suburbs in Mumbai, Maharashtra received an order worth Rs.3,54,000 (inclusive of GST leviable @ 18%) for supply of different cosmetic products from Prasanna Cosmetics Store of Delhi. Trident Beauty Cosmetics Ltd while checking the stocks found that order worth Rs.1,18,000 can be fulfilled from the company’s Dadar (Mumbai) store and remaining goods worth Rs.2,36,000 can be supplied from its Malad (Mumbai) store. Both the stores were instructed to issue separate invoices for the goods supplied and sent by them to Prasanna Cosmetics Store of Delhi. The goods are required to be transported to Delhi in a single conveyance owned by Radhey Transport Carriers of Dadar (Mumbai).

You are required to advise Trident Beauty Cosmetics Ltd as per provision under the CGST Act, 2017 with regard to issuance of e-way bill/(s).

Answer

Trident Beauty Cosmetics Ltd. would be required to prepare two separate e way bills since value of each of the invoice exceeds Rs. 50,000 and each invoice is to be considered as separate consignment for the purpose of generating e-way bill.

CBIC has clarified that if multiple invoices are being issued by the supplier to one recipient, then for the movement of goods of more than one invoice multiple e-way bills have to be generated.

One e-way bill has to be generated for each invoice, irrespective of the fact whether same or different consignors or consignees are involved. Multiple invoices cannot be clubbed to generate one e-way bill.

However, Rule 138(6) CGST Rules, 2017 provides that after e-way bill has been generated for each invoice/ consignment, where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him on the said common portal prior to the movement of goods.

Thus, after generating all these separate e-way bills, one consolidated e-way bill can be generated/prepared by the transporter for transportation purpose, where the goods are transported in one vehicle.

Therefore, in the present case both the stores issuing the invoice will generate separate e-way bill and thereafter one consolidated e-way bill can also generated by Radhey Transport Carriers of Dadar (Mumbai) as the goods from both the stores be transported to Delhi in one conveyance.

68.9 Validity Period of E-way bill

Question-1 [ICSI-P-J21-O-5(c)-3]

What is the validity period of e-way bill ? When its countdown starts ?

Quesiton-1A [ICSI-P-J18-5(e)(ii)-2]

What is validity period ?

Question-2 [ICSI-E-D18-O-93-1]

The validity period specified for an e-way bill or a consolidated e-way bill under E-way rules as specified in rule 138 for ...........

(A) distance upto 1 km—half day;

(B) distance upto 10 km—1 day;

(C) for every 100 km or part thereof thereafter—one additional day;

(D) both (B) and (C) above

Quesiton-3 [ICSI-E-D22-83-1]

The transporter starts the movement of goods on 2nd March, 2022 for destination which is 600 kms. from the place of dispatch, the e-way bill is generated is valid till :

(A) 4th March, 2022; (B) 5th March, 2022; (C) 8th March, 2022; (D) 7th March, 2022

Question-3A [ICSI-E-J19-O-86-1]

When the goods are dispatched to a destination which is 280 kms from the place of dispatch, the e-way bill generated is valid for:

(A) 1 day; (B) 3 days; (C) 2 days; (D) 5 days

Question-3B [ICSI-E-J21-80-1]

What is the validity period of an e-way bill when the goods travel 500 kilometers between place of dispatch and place of destination of such goods ?

(A) 1 day; (B) 3 days; (C) 5 days; (D) 7 days

Question-4 [ICAI-F-Jan-21-7(b)-3]

Agni Ltd. a registered supplier wishes to transport cargo by road between two cities situated at a distance of 368 kilometres. Calculate the validity period of e-way bill under rule 138(10) of CGST Rules, 2017 for transport of the said cargo, if it is over dimensional cargo or otherwise.

Answer

The validity period of e-way bill under rule 138(10) of the CGST Rules, 2017 for transport of cargo by road between two cities situated at a distance of 368 km is as under:

(i) If it is over dimensional cargo: the validity period of the e-way bill is one day from relevant date upto 20 km and one additional day for every 20 km or part thereof thereafter.

Thus, validity period in given case:

= 1 day + 18 days = 19 days

(ii) If it is a cargo other than over dimensional cargo: the validity period of the e-way bill is one day from relevant date upto 100 km and one additional day for every 100 km or part thereof thereafter.

Thus, validity period in given case:

= 1 day + 3 days = 4 days

Penalty

[ICSI-P-D22-1(c)-5]

Suncity Private Ltd., a manufacturer registered in the state of Rajasthan, sold synthetic cloth to a retail seller in Maharashtra, at a value of Rs. 49,000 (excluding IGST leviable @ 5%). Now, it wants to send the consignment of such cloth to the retail seller in Maharashtra.

You are required to advise Suncity Private Ltd. on the following issues with reference to the provisions relating to the electronic way bill (e-way bill) as prescribed under the GST law:

(i) Whether e-way bill is mandatorily required to be generated in respect of such movement of goods?

(ii) If yes, who is required to generate the e-way bill?

(iii) What will be the consequences for non-issuance of e-way bill?

Answer

(i) Rule 138(1) of the Central Goods and Services Tax (CGST) Rules, 2017 provides that e-way bill is mandatorily required to be generated if the goods are moved, inter alia, in relation to supply and the consignment value exceeds Rs. 50,000. Further, explanation 2 to Rule 138(1) of CGST Rules, 2017 stipulates that the consignment value of goods shall be the value, determined in accordance with the provisions of section 15 declared in an invoice, and also includes Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST)/ Union Territory Goods and Services Tax (UTGST), Integrated Goods and Services Tax (IGST) and cess charged, if any, in the document.

Accordingly, in the given case, the consignment value will be as follows:

= 49,000 x 105% = 51,450

Since the movement of goods is in relation to supply of goods and the consignment value exceeds Rs. 50,000, e-way bill is mandatorily required to be issued in the given case.

(ii)

As per Rule 138(2) of CGST Rules, 2017, an e-way bill contain two parts namely, part A to be furnished by the registered person who is causing movement of goods of consignment value exceeding Rs. 50,000 and part B (Transport details) is to be furnished by the person who is transporting the goods.

Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or public conveyance, by road, the said person shall generate the e-way bill on the common portal after furnishing information in Part B.

In the present case, the movement is appears to be caused by Suncity Private Limited, e-way bill is liable to be prepared by it.

(iii) As per section 122(1)(xiv) of Central Goods and Services Tax Act 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs.10,000 or tax sought to be evaded (wherever applicable) whichever is greater.

Also all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and penalty provisions under section 129 of CGST Act.