Context: The government has retrospectively extended the validity of e-way bills under the Goods and Services Tax (GST) regime.

More about the new rules :

  • The government has deferred the implementation of 10 per cent restriction on availing input tax credit during February-August, which would then be cumulatively adjusted in September.
  • The validity period of e-way bills have been extended till the 30th day of April 2020.

Implications of the new rules:

  • It will ease the working capital requirements for businesses.
  • Compliance-related relaxations will help traders: With hundreds of trucks getting stranded across the country since lockdown and their e-way bills for goods in transit or in godowns were getting expired and could not be renewed on due dates.

E-way bill

  • Under the Good and Service Tax act, transporters should carry an e-Way Bill when moving goods from one place to another. It is generated on the e-Way Bill Portal (ewaybillgst.gov.in)
  • Alternatively, E-way bills can also be generated or cancelled through SMS, Android App and by site-to-site integration through API.
  • When an eway bill is generated, a unique E-way Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Who should generate e-way bill?

  • Registered Person - Eway bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. 
  • A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.
  • Unregistered Persons - Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. 
  • Transporters - Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

No e-way bill is required:

  • When the mode of transport is non-motor vehicle.
  • Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
  • Goods transported under Customs supervision or under customs seal.
  • Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
  • Transit cargo transported to or from Nepal or Bhutan.



Image Source: thehindubusinessline