A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route. Most freight forwarders and trucking companies use an in-house waybill called a house bill. These typically contain “conditions of the contract of carriage” terms on the back of the form. These terms cover limits to liability and other terms and conditions.[1]
Under GST, e-waybills have been incorporated. The E-waybill means an electronic way bill, which is required for movement of goods, if the value of GST paid goods is more than Rs.50,000/- except for certain specified goods as notified by the Government. The person in charge of a conveyance carrying any GST paid goods shall carry Tax invoice along with E-waybill and present to the check post authority at the entry point of any States or Union territory for scrutiny of Tax paid goods and also facilitates the transit checking of goods by the GST officer[2].
E-waybill system was introduced to regulate tax-evasion in the country. In order to ensure proper regulation of E-waybill system in the GST regime, CBEC released the Electronic Way Bill Rules on 30th August’2017 vide Notification No.27/2017 – Central Tax, dated 30.08.2017.
Under the Rules, while the furnishing of e-waybill is mandatory for a person requiring movement of goods of consignment, whose value exceeding Rs,50,000/-, a registered person or transporter may voluntarily, at his option, generate and carry the E-waybill even if the value of the consignment is less than fifty thousand rupees. Similarly, where the goods are transported for a distance of fewer than ten kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter may not furnish the details of conveyance as per the rules.
To generate a unique E-waybill, both the supplier and transporter will have to upload certain required details on the GSTN (Goods and Services Tax Network) portal. On furnishing details in FORM GST EWB-01 on the common portal, the E-waybill shall generate and a unique E-waybill number (EBN) shall be available to the supplier, the recipient and the transporter on the common portal. Where an E-waybill has been generated, but goods are either not being transported or are not being transported as per the details furnished, E-waybill may be cancelled electronically on the common portal, within 24 hours of generation of the e-WayBill, provided that an E-waybill cannot be cancelled if it has been verified in transit.[3]
Though the GST was formulated with the aim to have as a comprehensive code to replace most indirect taxes, the law, due to various circumstances is being implemented in installments. The e-waybill is also introduced in phases till March-2018 and till then, the respective individual state laws would be applicable. This creates scope for a great deal of confusion for vehicles carrying goods passing through two-three states or Union Territories.
As per the Rules, a registered person who is a responsible movement of goods of consignment value exceeding fifty thousand rupees is mandatorily required to generate the E-waybill before the commencement of such movement. But the fact that the term “consignment value” has not been defined anywhere in the Rules, may lead to various circumstances of confusion and variant interpretations.
There is no clarity on the requirement of E-waybill for movement of goods between two unregistered persons. Also, the way the unregistered person would login into the GST Network and generate the E-waybill is not prescribed. This would lead to additional burden on the registered person and the transporter[4].
The above may be certain drawbacks of the introduction of the e-waybill system under the GST. However, the E-waybill system may result in a more synchronised and lawful movement of goods across states. The introduction of the e-waybill system will lead to hassle-free movement of goods and will also help in regulating corruption at the check-posts. With the difficulties of a material waybill gone, the e-waybill promises to bring in the convenient movement of goods along with more control over tax evasion.
[1] “What is a waybill? definition and meaning”. WebFinance, Inc. Retrieved 7 October 2013
[2] “Electronic Way Bill Under GST Law- An Analysis”, Ramesh Chandra Jena, [2017] 86 taxmann.com 132.
[3] id.
[4] “E-waybill – Is it a boon or bane?” Shaishav Udani and Usha Darwani, [2017] 86 taxmann.com 96.
