E-Way Bill Not Required for 50 Kms: When is E-Way Bill Not Needed
Nimisha Panda- May 5
- 9 min read
The Goods and Services Tax (GST) went into effect in India on July 1, 2017, although additional sections, such as the GST E Way Bill, went into effect nationwide on April 1, 2018. The implementation was carried out in stages, nonetheless, to prevent any more technical issues. The implementation of the e-way bill was divided into four stages. Previously, there were some questions about the application and distance of an e-way bill. We have addressed these by providing precise regulations as outlined by the finance ministry and GST council.
Table of Content
What is an E-Way Bill?
Products must be shipped using an Electronic Way bill in accordance with GST. A registered person is not permitted to transport goods in a vehicle for more than Rs. 50,000 without an e-way bill, which is created online on ewaybillgst.gov.in. Additionally, e-way bills can be created or cancelled using SMS, Android apps, and site-to-site connectivity through APIs as long as the parties have a valid GSTIN. Before using it, make sure the GSTIN is correct by using the GST search tool. A distinct E-way Bill Number (EBN), which is accessible to the supplier, recipient, and carrier, is assigned when an e-way bill is generated.
Validity of an E-Way Bill
Depending on the distance the items have gone, an e-way bill is valid for the durations indicated below. Validity is determined using the e-way bill's creation date and time. Furthermore, the generator has the option to extend the validity of the e-way bill eight hours before or within eight hours after it expires.
Is E-Way Bill Not Required for 50 Kms?
Additionally, the generator can choose to prolong the E-way bill's validity by eight hours either before or within eight hours of its expiration. In this example, we address the concerns surrounding the GST E Way Bill's distance. The E-way bill 138, Notification -12/2018, dated 07-03-2018, specifies supply under GST preface 3 circumstances.
Interstate distribution- If the items are valued at more than Rs. 50,000 and the supply is interstate, a GST E Way Bill must be created.
Allowance for additional transportation- For intrastate supplies and transport offices that are located less than 50 km away, just Part A of the GST E Way Bill needs to be filled out.
Deliver to the consignee- GST E Way Bills must be generated whenever an intrastate supply is being sent directly to the consignee and the consignment value exceeds Rs. 50,000, even if the shipment is only 1 km away and is being transported by motorised vehicle.
Validity of E-way Bill to 1 Day for Every 200 km Covered
In accordance with the Central Goods and Services Tax Rules (Fourteenth Amendment), 2020, the CBIC revised Rule 138 of the Central Goods and Services Tax Rules, 2017 by issuing Notification No. 94/2020-Central Tax on December 22, 2020. The following is how the new modifications will take effect on January 1, 2021:
The latest modifications indicate that the e-way bill's validity has been extended from 100 km to 1 day for every 200 km of travel. This is only relevant in situations where ship transportation is also involved, such as when Dimensional Cargo or multimodal cargo is involved. To put it simply, the e-way bill will be valid for up to 200 miles of travel for one day after it is created. One extra day will be permitted for every 200 kilometres, or a portion of that distance. The e-way bill's one-day validity is appropriate for travel up to 20 kilometres in the event of over-dimensional cargo or multimodal shipments when at least one leg involves ship transportation. After that, an extra day will be permitted for every 20 kilometres or a portion of that distance.
Sl. No. | Distance | Validity period |
1. | Up to 200 km. | 1 day in cases except Over Dimensional Cargo/multimodal shipment where at least one part involves ship transport |
2. | For every 200 km covered/ part thereof thereafter | 1 additional day in cases except Over Dimensional Cargo/multimodal shipment where at least one part involves ship transport |
3. | Up to 20 km | 1 day in case of Over Dimensional Cargo/multimodal shipment where at least one part involves ship transport |
4. | For every 20 km covered/ part thereof thereafter | 1 additional day in cases except Over Dimensional Cargo/multimodal shipment in where at least one part involves ship transport |
Applicability of GST E-Way Bill for Short Distances
Businesses sometimes enquire about whether creating an E-Way Bill is required for short distances. This is especially when the shipment is only a few kilometres away. We will examine the circumstances in which the GST laws demand the GST E-Way Bill in more detail.
The Interstate Supply: If the supply of goods is interstate and the total value of the goods exceeds Rs. 50,000, an E-Way Bill needs to be made, no matter how far away the goods are. This law is very clear: the E-Way Bill must be prepared prior to the items being carried for any interstate supply with a consignment value greater than Rs. 50,000.
Intrastate Provision for Additional Transit: The regulations are somewhat more lenient when the items are being carried inside the same state for additional transportation. You only need to fill out Part A of the E-Way Bill if the trip is shorter than 50 km. This is true for intrastate shipping, in which the cargo is being transported for additional transit. Even if the commodities are only 1 km away, the E-Way Bill needs to be made if the products are worth more than Rs. 50,000 and the transportation involves delivering the goods directly to the consignee in the same state.
This suggests that the E-Way Bill may be necessary in some situations, even for very brief trips.
Intrastate Delivery Straight to the Consignee: The most crucial thing to realise is that, even for relatively short intrastate transportation routes (2 km), the E-Way Bill must be issued if the items are being transported to the consignee and the consignment value exceeds Rs. 50,000. This is relevant when a motorised vehicle is used to convey the products. Businesses frequently misinterpret this law, believing that they are exempt from the E-Way Bill obligation for lesser distances. The rule is unambiguous, though. An E-Way Bill is required if a motorised vehicle is used and the consignment value exceeds Rs. 50,000. It doesn't matter if it is one kilometre or one hundred.
Importance of E-Way Bills for Short Distance
The government imposed this regulation for a number of reasons, despite the fact that creating an E-Way Bill for short-distance transportation may appear daunting:
Stopping Tax Avoidance: Authorities may monitor the movement of products in real time with the E-Way Bill system. This makes sure that no commodities are transferred without the required paperwork. This lessens the likelihood of underreporting and tax evasion.
Transparency: The E-Way Bill increases transparency in the transportation of products by logging all moves and allowing authorities to trace them. This keeps the supply chain running smoothly and increases compliance.
Easy Logistics: Goods travel across states more quickly thanks to the E-Way Bill, which does away with the necessity of several physical inspections at state borders. It increases the efficiency of logistics processes by streamlining them.
Conformity: The government guarantees that companies follow the rules and help create a more effective tax system by requiring the preparation of E-Way Bills.
Goods Exempted from E-Way Bills
Transportation of the items listed in the rules' appendix as follows:
In order to supply domestic and non-domestic exempt category clients with liquefied petroleum gas
Public Distribution System (PDS)-sold paraffin oil
The Department of Posts transports postal baggage
Pearls, whether cultivated or natural; valuable or semi-precious stones; and precious metals and metals coated in precious metal
Jewellery, products created by silversmiths and goldsmiths, and other things
Money
Used household and personal items
Coral, both wrought and unworked
Items being transported include human-consumed alcoholic liquor, petroleum crude, high-speed diesel, gasoline, natural gas or fuel for aircraft turbines.
According to Schedule III of the Act, transported goods are not considered supplies. Activities listed in Schedule III would not be considered a supply of goods or services, such as an employee's work for an employer or the duties of an MP or MLA.
Empty shipping containers are used to convey goods.
Transportation of goods other than de-oiled cake is outlined in Central Tax (Rate) Notification No. 2/2017, which was issued on June 28, 2017. The following are a few items that are mentioned in the notification above:
Buttermilk, lassi, and curd
Pasteurised milk and fresh milk without added sugar or other sweeteners
Vegetables
Fruits
Unroasted coffee beans and raw tea leaves
Living trees, plants, and animals
Meat;
Cereals
Unbranded wheat flour and rice
Salt
Educationally significant items (books, maps, journals)
Products covered by Central Tax (Rate) Notification No. 7/2017 dated June 28, 2017 (provided by CSD to permitted customers and unit-run canteens) and No. 26/2017 dated September 21, 2017 (consisting of nuclear fuels and heavy water) are exempt.
Transactions Exempted from E-Way Bills
e-Way Bills are optional for items under Rs 50,000 (with the exception of situations where they are required, such as when moving handicrafts or items for interstate job work).
When products are being moved using a non-motorized vehicle (such as a horse cart or a manual cart).
If something is being shipped:
Transfer to an inland container depot (ICD) or container goods station (CFS) for customs clearance after leaving the port, airport, air cargo complex, and land customs station.
From a customs port, air cargo, airport, etc., to ICD or CFS under customs bond.
Using a customs bond to move between customs ports or stations
Items that are shipped under customs regulation or customs sea
Items moved within the designated region
The items being transported are en-route from Nepal or Bhutan.
If items are delivered to a weighbridge within 20 km and then returned to the location of the business covered by a Delivery Challan (DC),
When local or government agencies act as consignors and convey products by rail
Items brought into or taken out of the Ministry of Defence
Therefore, a taxpayer is not obligated to create an e-way bill if he comes under any of the aforementioned categories. Taxpayers who are excluded from this requirement under e-way bill exemptions should nevertheless make sure that the other documents, such as the bill of supply and invoice, comply with the laws. A taxpayer who violates the e-way bill regulations faces harsh penalties.
Conclusion
In conclusion, any intrastate and interstate transportation of products with value exceeding Rs. 50,000, even if the distance is only 1 km, must have the GST E-Way Bill. The regulation streamlines the taxation and logistical procedures while guaranteeing increased openness and compliance. Businesses must use the E-Way Bill system in order to stay in compliance with GST laws and stay out of trouble. Businesses should carefully examine their logistical procedures in light of these regulations to make sure they are producing the required E-Way Bills, regardless of how short the distance is. Businesses can successfully negotiate the complicated GST landscape and steer clear of any compliance-related problems by properly adhering to these requirements. All taxpayers must ensure compliance, update their procedures, and make sure their company's activities follow the most recent rules.
Frequently Asked Questions (FAQs)
Is an e way bill required for less than 50 km?
Yes, even for deliveries under 50 km, an e-way bill is necessary. However, when the distance between the consignor's and the transporter's locations is less than 50 kilometres, Part B of the e-way bill (conveyance details) does not need to be filled out.
Is an e way bill required for inter state supply less than Rs. 50,000?
Goods valued at more than Rs 50,000 must be moved to or from a registered individual in order for an e-Way bill to be created. However, even if the products are worth less than Rs 50,000, a registered person or the transporter may decide to create and carry e-way invoices.
Do I need an e-way bill for goods transported within the same state?
Yes, even within the same state, an e-way bill is necessary when transporting items valued at more than Rs 50,000. However, for intrastate movements of goods when the distance between the consignor's and the transporter's locations is less than 50 kilometres, Part B of the e-way bill (conveyance details) does not need to be filled out.
Is an e-way bill mandatory for the transport of personal household items?
Transporting used household item and personal belongings does not require an e-way bill.
Is there any validity period for e-way bill?
Yes. The distance the products must be transported determines whether the e-way charge is valid. Regular vehicles and modes of transport have a one-day validity period for every 100 kilometres or a portion of their journey. Additionally, vehicles carrying over-dimensional cargo have a one-day validity period for every 20 kilometres or portion of their trip. Additionally, this validity ends at midnight on the previous day.
Which types of transactions need the e-way bill?
E-way bills are required for the transportation of products in connection with all kinds of transactions. It includes outbound and inbound supplies, whether from within the state or from outside the state, including from unregistered individuals, and for purposes other than supply. For more information, please refer to the applicable notifications and guidelines. However, as of April 1, 2018, only interstate travel requires e-way.
When does the validity of the e-way bill begin?
The e-way bill's validity begins when the vehicle is entered for the first time in Part-B (as in the case of road transportation) or the transport document number is entered for the first time in the case of rail, air or ship transportation, whichever comes first. It should be mentioned that Part B does not recalculate validity for subsequent entries.
Can the e-way bill be modified or edited?
Once created, the e-way bill cannot be changed or altered. You can only update Part B. On the other hand, an e-way bill can be cancelled and generated again if it contains incorrect information. The cancellation must be made within 24 hours of the generation time.
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