The e-way bill system has been implemented with the intention to improve the system of transportation of goods throughout the country. By making it mandatory to carry an e-way bill when goods worth more than ₹50,000 are being moved inter or intrastate, the Government aims to curb tax evasion through improved tracking of the movement of goods.
Dealers use various methods of delivery to transport goods throughout the country. In this article, we will discuss these methods of delivery, and the e-way bill rules that apply to each.
Dealers can transport goods across the country using one of three main methods of delivery, as below:
In each of the above scenarios, it is mandatory to carry a valid e-way bill during transportation, as long as the other criteria that make carrying an e-way bill mandatory are met.
Given below are the various different rules for the generation, updation, and cancellation of e-way bills:
As stated earlier, it is mandatory to generate an e-way bill where applicable, regardless of the method of delivery of the goods. But, in each scenario, the party responsible for generating the e-way bill may change. Mentioned below are the parties responsible for generating the e-way bill in each method of delivery:
In some cases, the e-way bill that was generated previously needs to be updated, corrected, or changed. The reason may be due to a change of vehicle, for example, if the original vehicle transporting the goods breaks down, or if the goods are being trans-shipped using another mode of transport (rail, air, or ship). Such situations are common when hiring a third party vehicle or a GTA for the transport of goods.
Where a change of vehicle is required, but the mode of transport remains the same, it is the responsibility of the transporter to update the vehicle number in the e-way bill. However, in case the mode of transport has changed as well, then the mode of transport mentioned in the e-way bill needs to be updated as well, along with the other necessary information that is required when the mode of transport changes.
An e-way bill can only be cancelled within 24 hours from the time it was generated, and Part A of the e-way bill cannot be modified or updated. In situations where the e-way bill was generated, but the goods were never transported, or if the goods were transported, but with different details to those mentioned in Part A, the e-way bill can be cancelled, but only within 24 hours.
We won’t go into how to generate, update or cancel e-way bills here, as we have already written detailed guides on these topics. You can check them out by visiting the pages linked below:
As mentioned, a dealer can distribute items using any means of transportation. The implications of the technique for using an e-way bill are outlined in the examples of three different scenarios provided below.
Using Your Own Vehicle to Transport the Goods
In this case, the dealer is the one who needs to generate the e-way bill. He needs to provide the details required in Parts A and B of the e-way bill. However, the dealer need not provide information about the transporter, the transporting agency, or the transporter’s GST number. That is because the dealer is using their own vehicle, not hiring one from a third party or a GTA. The dealer must complete part A of the e-way bill with the necessary information and only include the vehicle number in part B.
Hiring a Vehicle to Transport the Goods
Here, as in the above case, it is the dealer’s responsibility to generate the e-way bill. But this time, instead of entering details of his own vehicle in Part B, he will need to provide the vehicle number of the hired car along with the other pertinent information as required when generating the e-way bill.
Hiring the Services of a Goods Transport Agency (GTA)
There can be two possibilities in this case: one where either the consignor or consignee has generated the e-way bill, and the other where the transporter has generated the e-way bill. If the consignor or consignee has generated it, then they need to fill out Part A of the e-way bill, the same way as in the other two methods of delivery. However, if the transporter is the party that needs to generate the e-way bill, then the consignor or consignee must provide the transporter the information that is required in Part A, and based on that information, the e-way bill needs to be generated.
The methods of delivery discussed above all pertain to the transport of goods by road. But a dealer may choose to move the goods using other modes of transport, such as by rail or by air. There are different requirements for e-way bills for each mode of transport. See the articles linked below to know more about these rules.
Regardless of the method of transport chosen by the dealer, the bottom line here is that the person in charge of the vehicle transporting the goods must be in possession of a valid e-way bill at all times during the transport journey. Exceptions may occur in situations where the e-way bill is not necessary anyway, for example, if the goods being transported are not worth more than the threshold limit of ₹50,000.
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