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Thursday, June 21, 2018


Rule 138A – Documents and devices to be carried by a person-in-charge of a conveyance
1. The person in charge of a conveyance shall carry—
a. the invoice or bill of supply or delivery challan, as the case may be; and
b. 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
2. A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.
3. Where the registered person uploads the invoice under sub-rule (2), the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
4. The 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 and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.
5. Where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill-
a. tax invoice or bill of supply or bill of entry; OR
b. a delivery challan, where the goods are transported for reasons other than by way of
Consequences of non-generation of eWay Bill:-
Eway bill is an electronically generated document mandatory, to be carried for movement of goods across India. It is necessary for the movement of goods worth more than Rs. 50,000 with some exceptions.
A unique eway bill number (EBN) would be generated for each such consignment to be transported. The validity of this EBN depends on the distance of transportation of goods.
To enforce this rule, authorized officers may be instructed to intercept any vehicle at certain check posts for the verification of necessary documents. Additionally, a physical verification of the vehicle may be carried out on receiving specific inputs regarding tax evasion.
Consequences of not carrying Eway bill
The consequences of not generating & carrying the EWay bill can result in both monetary and non-monetary losses to the taxpayer.
Goods being moved in the contravention of Law are liable for:
Monetary Penalty
Moving goods without the cover of an invoice and Eway bill constitutes an offence and attracts a penalty of Rs.10,000 or the tax sought to be evaded (whichever is greater).
Hence, the bare minimum penalty that is levied for not complying the rules is Rs. 10,000.
Detention and Seizure
The vehicle that is found to be transporting the goods without an Eway bill can be detained or seized and would be released only on payment of appropriate tax and penalty as specified by the officer. Under this, there could be two situations:
If the owner wishes to pay the penalty, he must pay 100% of the tax payable.
If not, the penalty will be equal to 50% of the value of goods.
Apart from the legal consequences mentioned above, it is also important to note that the vehicle, as well as the goods of the taxpayer, can be detained. This would mean that the taxpayer’s supply chain would get affected due to the long delays at the check posts.
Therefore, Embarrassing and unproductive situations like these can be avoided by simply complying the rules. Start using Eway bill online portal and SMS facility are readily available to simplify the whole process. It is advised that the taxpayers comply with the law to ensure smooth facilitation of goods from one state to another.
Frequently Asked Questions
What does the invoice value of Rs.50,000 include for calculating applicability of Eway bill?
Ans: The invoice value includes both the taxable amount plus the GST amount for calculating the applicability.
Is there any time gap for updating the Part A and Part B of the Eway bill?
Ans: On furnishing Part A of the Eway bill, a unique number shall be generated which shall be valid for 72 hours for updating the Part B of the Eway bill.
How many times can Part B of the Eway bill be updated?
Ans: There is no limit on the number of times it can be updated as long as it is within the period of validity. At any point of time, the vehicle details should match with the vehicle actually transporting the goods.
Can the goods be seized by the GST authorities even when it is accompanied by Tax Invoice and eway Bill, only on the ambiguity of classification of goods and Tax Tariff?
Ans: No. The rules do not lay down the circumstances or grounds of seizure or detention of vehicle. The understanding is that anything (concrete evidence) that causes suspicion to the proper officer about possible tax evasion can lead to seizing of the vehicle.

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