PRINCIPLES OF TAXATION – II

SEMESTER VIII

ICA RESEARCH PAPER

E-WAY BILL AND ITS IMPLICATIONS ON MULTIMODAL

TRANSPORT OF GOODS ACT
 TABLE OF CONTENTS
I. INTRODUCTION..............................................................................................................3

II. OVERVIEW OF E-WAY BILL UNDER THE CGST ACT.........................................5

A. Validity and Expiry of E-way Bill...............................................................................5

III. IMPLICATIONS OF E-WAY BILL ON MULTIMODAL TRANSPORT OF GOODS

ACT 7

IV. CONCLUSION...............................................................................................................8

V. REFERENCES................................................................................................................9

A. LEGISLATIONS.............................................................................................................9

B. Case Laws....................................................................................................................9

C. BOOKS........................................................................................................................9

D. ARTICLES..................................................................................................................9

E. INTERNET SOURCES...............................................................................................9
 A. INTRODUCTION

The Central Goods and Services Tax (CGST) Act is a law passed by the Indian Parliament to
govern the levying and collection of taxes on the supply of goods and services within the
country. It is part of the GST (Goods and Services Tax) regime that was implemented in
India on July 1, 2017.

The CGST Act establishes the rules and procedures for administering the CGST, which is
levied on intra-state supplies of goods and services. The act also provides for the creation of a
Central Board of Indirect Taxes and Customs (CBIC) to oversee the implementation of the
GST across the country.

Under the CGST Act, all registered taxpayers are required to maintain proper records of their
business transactions, file regular tax returns, and pay taxes on time. The act also prescribes
penalties for non-compliance and provides for an appeal.

The introduction of e-way bill under the GST regime further streamlined the movement of
goods across the country. By means of e-way bill government controls the movement of
goods. A digital interference to that effect is envisaged under Section 68 read with rule 138 of
the CGST Act. Benefits of e-way bill are plenty, such as, elimination of dummy transactions
or fake invoices, elimination of multiple checkpoints during intra-state transport, etc. Overall
e-way bill brings transparency to the movement of goods and taxable supplies.

Core legal provisions governing the intra-state movement of goods is reproduced below for
the benefit of the reader.

Section 68 of the CGST Act reads as follows.

“(1) The Government ay require the person in charge of a conveyance to carrying any
consignment of goods of value exceeding such amount as maybe specified to carry with him
such documents and such devices as maybe prescribed.

(2) The details of documents required to be carried under sub-section (1) shall be validated in
such manner as maybe prescribed.

(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at
any place, he may require the person in charge of the said conveyance to produce the
documents prescribed under the said sub-section and devices for verification, and the said
person shall be liable to produce the documents and devices and allow the inspection of
goods.”

Rule 138 of CGST Rules, 2017 stipulates that e-way bill is the document to be carried for the
consignment of goods in certain prescribed cases.

Prior to understanding the contours and nuances of the e-way bill process and its place in the
movement of goods, it is important to appreciate the concept of a ‘way bill’ and an ‘e-way
bill’.

A ‘waybill’ is a receipt or a document provided by a carrier that contains information and

instructions pertaining to the transportation of a consignment of goods. The information
includes the name of the consignor and consignee, as well as the consignment's point of
origin, destination, and route.

The person causing the movement of the goods uploads the necessary information before the
movement of the goods begins and then generates an electronic way bill on the GST site.
This is known as an electronic way bill (E-Way Bill). In other words, an ‘E-way bill’ is an
electronic record of a shipment's movement that is created on the GST portal.

Inter-state supply of goods is governed by CGST Act, and intra-state supply of goods is
governed by State Good and Services Tax Act, 2017 (SGST Act). The limit for supply
requiring an issuance of an e-way bill under the intra-state regime is Rs. 50,000.

Against this background, the aim and object of this study is to clarify and educate the users of
the GST processes about certain key developments and know-how pertaining to e-way bill by
means of conceptual analysis, and case law.
 B. OVERVIEW OF E-WAY BILL UNDER THE CGST ACT

An E-way bill is generated by electronic means under Form GST EWB 01. For the purposes
of generation of an e-way bill a supplier must register with its registered GSTIN on the e-way
bill portal. To ensure flexibility, an e-way bill can be generated by an unregistered transporter
as well. To that end, the transporter may visit the E-way bill website and get enrolled with a
15 digit unique transporter Id called TRANSIN. The following part undertakes to explain
certain key terminology and processes under e-way bills.

C. Conditions Under Which E-way Bill is Required to be Generated

In cases where there is a movement of goods of consignment value exceeding Rs. 50,000:

i. In relation to supply,
ii. For reasons other than supply,
iii. Due to inward supply from an unregistered person.

The registered person who instigates the movement of goods shall provide the information
relating to the said goods as specified in Part A of the aforementioned form before
commencement of such movement of goods.

D. Essentials of Consignment Value of Goods

It is important to note what constitute the consignment value of goods to figure out whether
an e-way bill must be generated or not. Essentials are as follows.

i. Determined in accordance with provision of S. 15 of CGST, Act

ii. Declared in a tax invoice, a bill of supply or a delivery challan, and issued in
respect of the said consignment;
iii. Includes Central tax, State or Union territory tax, integrated tax, and cess charged,
if any,
iv. Excludes the value of exempt supply of goods when the invoice is issued in
respect of both exempt and taxable supply.

E. Situations Where the INR 50,000 Limit on Consignment Value is Inapplicable

i. Inter-state transfer of goods by principal to job-worker;

ii. Inter-state transfer of handicraft goods by a person exempted from obtaining
registration;
 F. Structure of an E-way Bill

An E-way bill Form GST EWB-01 contains two parts:

i. Part A: It comprises of details of GSTIN of supplier & recipient, place of delivery

(indicating PIN Code), document (Tax invoice, Bill of Supply, Delivery Challan,
or Bill of Entry), number and date value of goods, HSN code, and reasons for
transportation, to be provided by the registered person who is causing movement
of goods of consignment values exceeding INR 50,000.
ii. Part B: This part comprises of transport details. Transporter document number,
Goods Receipt Number, or Railway Receipt Number, or Airway Bill Number, or
Bill of Lading Number, and vehicle number in case of transportation via road, to
be provided by the person transporting the goods.

Exceptions to rules under Part A.

Information under part A may also be provided by

 The transporter on an authorization received from such registered person1.

 By the e-commerce operator or courier agency, where the goods to be transported, are
supplied through such an e-commerce operator or a courier agency, on an
authorization received from the consignor2.

G. Validity and Expiry of E-way Bill

Validity is an important aspect of e-way bill. The expiry of a bill attracts penalty under Ss.
67, and 68 of CGST Act. The validity of an e-way bill is contingent upon distance travelled
by the goods. The e-way bill will be valid for one day from the relevant date for distances
under 200 kilometres. The validity will increase by one day from the relevant date for every
200 kilometres after that.

Distance within Country Validity Period from Relevant Date

Upto 200 Km One day in cases other than Over
Dimensional Cargo or Multimodal
Shipment in which atleast one leg involves
transport by ship

1
First proviso, Rule 138(1), CGST Rules 2017.
2
Second provison, ibid.
 For every 200 Km or part thereof thereafter One additional day in cases other than Over
Dimensional Cargo or Multimodal
Shipment in which atleast one leg involves
transport by ship
Upto 20 Km One day in case of Over Dimensional Cargo
or Multimodal Shipment in which atleast
one leg involves transport by ship
For every 20 Km or part thereof thereafter One additional day in case of Over
Dimensional Cargo or Multimodal
Shipment in which atleast one leg involves
transport by ship.

For the purposes of validity, relevant date means the date on which the e-way bill has been
generated and the period of validity shall be counted from the time at which the e-way
bill has been generated and each day shall be counted as the period
expiring at midnight of the day immediately following the date of
generation of e-way bill.

Over dimensional cargo means a cargo carried as a single indivisible unit

and which exceeds the dimensional limits prescribed in rule 93 of the
Central Motor Vehicle Rules, 1989, made under the Motor Vehicles
Act, 1988.

Several clarifications have been made regarding expiry of e-way bill by way of orders of
respective high courts. Some important case law has been highlighted below.

In Karan Singh v. State of West Bengal & Ors.3, there was a delay of 41 minutes in delivery
of consignment and the Adjudicating Authority had imposed a fine within 40 minutes of such
delivery. It was argued that due to the hilly nature of the terrain where the delivery was
supposed to be made, a delay is not unforeseeable or out of the realm of possibility.

Holding in favour of the appellant, the Calcutta High Court observed that, when a statute
provides for extension of time to a transporter, it is the duty of the Adjudicating Authority to
communicate about such right to extend.

3
Karan Singh v. State of West Benal & Ors., W.P.A. 72 of 2023 (Calcutta High Court).
In Govind Alloys Pvt. Ltd. v. State of Gujarat 4, in the present case there was a delay in transit
because the transporter’s vehicle was not in motorable condition. Therefore, the authorities
intercepted the vehicle during that delayed period of transit. The authorities seized the vehicle
alongwith goods and issued a detention order.

The primary issue that arose before the court for consideration was whether GST authority
can detain and seize transport vehicle alongwith goods in case e-way bill expires during the
course of transit.

The court held that mere expiry of e-way bill cannot be ground for seizure of transport of
good. There were no ill-intention or malafides on behalf of the transporter for the same. A
technical error cannot invite a penalty under S. 129 (3).

The Courts have taken a business-friendly approach when it comes to applicability of

provisions of GST, especially in cases of technical or procedural compliances. It can be
observed that such laxity is welcome due to the nature of business transaction and general
uncertainties in transportation especially in a developing country like India.

4
Govind Alloys Pvt. Ltd. v. State of Gujarat, R/Special Application No. 23835 of 2022.
 H. CONCLUSION

In conclusion, the implementation of the e-way bill system under the GST regime has
brought about significant changes in the logistics and supply chain management in India. The
introduction of the e-way bill has reduced the instances of tax evasion, improved the
efficiency of transportation of goods, and enhanced transparency in the overall system.

The e-way bill system has been successful in achieving its objective of creating a unified tax
regime across the country. It has simplified the documentation process for businesses and has
reduced the burden of compliance. The system has also enabled the government to keep a
track of the movement of goods and has helped in curbing the instances of tax evasion.

However, there have been some challenges faced by businesses in the implementation of the
e-way bill system. Technical glitches and network issues have hindered the smooth
functioning of the system, leading to delays in the transportation of goods. Moreover, the lack
of awareness and education among businesses about the e-way bill system has also posed a
challenge.

The judiciary, by way of case law and the relevant authority by way of rules and notifications
have time and again clarified details about the applicability and scope of provisions relating
to e-way bill. Overall, the e-way bill mechanism has revolutionized logistics and supply
chain management in India. The old regime of multiple check posts caused a lot of delay
which in turn led to overburdening the costs of the business. Such streamlined structure in a
quasi-federal jurisdiction like that of India is a welcome and positive change in movement of
goods and increase of their efficiency thereto.
I. REFERENCES

A. LEGISLATIONS

 Central Goods and Services Tax Act, 2017.

 Central Goods and Services Rules, 2017.
 The Constitution of India, 1950.
 Multimodal Transportation of Goods Act, 1993.

J. CASE LAWS

 Karan Singh v. State of West Benal & Ors., W.P.A. 72 of 2023 (Calcutta High Court).
 Govind Alloys Pvt. Ltd. v. State of Gujarat, R/Special Application No. 23835 of
2022.

K. BOOKS

 TAXMANN, GST ACTS WITH RULES AND FORMS (2023).

 DATEY V.S., TAXMANN’S GST E-WAY BILL (2023).

L. ARTICLES

 Anjana Haines, India GST: The Mechanics of Compliance, 28 INT’L TAX REV. 22
(2017).
 Nikunj Arora, E-Invoice Important Aspects Decoded¸3 INT’L J.L. MGMT. & HUMAN.
300 (2020).

M. INTERNET SOURCES

 Mariya Paliwal, Expiry of E-way Bill Does Not Create Any Scope for Tax Evasion :
Madras High Court Imposes Minor Penalty, LIVE LAW (Jan. 21, 2023) https://www-
livelaw-in.opj.remotlog.com/news-updates/expiry-e-way-bill-not-create-scope-tax-
evasion-madras-high-court-imposes-minor-penalty-219570.
 Mariya Paliwala, Officer is Duty Bound to Consider Explanation Offered for Expiry
of the E-way Bill : Kerala High Court, LIVE LAW (Aug. 27, 2022) https://www-
livelaw-in.opj.remotlog.com/news-updates/kerala-high-court-e-way-bill-207639.