When E-way bill is not required
E-way bill exemption
Hello, in this post we will discuss the GST e-way bill exemption cases where goods and transactions are exempt from the e-way bill.
Introduction
All GST registered business owners are bound to create e-way bills when you transport goods from one place to another if the consignment value exceeds Rs. 50,000. However, there are several situations where the e-way bill is not required and those situations are listed below.
New updates
29th August 2021
For March 2021 to May 2021, taxpayers will not face blocking of their e-way bills for non-filing of GSTR-1 or GSTR-3B (two months or more for monthly taxpayers and a quarter or more for QRMP taxpayers).
4th August 2021
E-way bills that have not been filed with GSTR-3B will be blocked from 15th August 2021.
1st June 2021
1. According to the e-way bill portal’s release notes, a suspended GSTIN cannot be used to generate an e-way bill. GSTINs suspended as recipients or as transporters can still generate an e-way bill
2. ‘Ship’ has now been updated to ‘Ship/Road cum Ship’ so that the user can enter a vehicle number when goods are first moved by road and a bill of lading number and date when goods are first transported by ship. As a result, you will be able to take advantage of ODC benefits when moving by ship, and you will also be able to update vehicle details as and when they move by land.
18th May 2021
In CBIC’s Notification 15/2021-Central Tax, it is clarified that the blocking of GSTINs for e-Way Bill generation now only pertains to the defaulting supplier’s GSTIN and not to the defaulting recipient’s or transporter’s GSTIN.
Who should generate the e-way bill and Why?
An e-way bill must be generated by the consignor or consignee if the shipment is transported by air, train, or by vessel.
In cases where the goods are handed over to a transporter for road transportation, an e-way bill will be generated by the transporter, provided part B is updated and part A details are provided by the registered person.
After getting authorization from Consigner/Consignee, the Transporter can also generate Part-A.
Also, when the goods are transported within the State or Union territory for a distance of up to 50 km from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier/recipient or transporter, as the case may be, are not required to disclose the details of conveyance in Part-B of FORM GST EWB-01.
In addition, where goods are sent from a principal located in one State to a job worker located in another State, the e-way bill shall be generated either by the principal or the job worker, if registered, regardless of the value of the consignment.
Again, in the case of handicraft goods transported from one State to another by a person exempted from the registration requirement, the e-way bill must be generated by the same person regardless of the value of the consignment.
E-way bill exemption for goods
- Transportation of goods laid down in the annexure to Rule 138 of GST as specified below:
- Liquified petroleum gas for supply to household and non-domestic exempted category customers
- Kerosene oil sold under PDS
- Postal baggage transported by the Department of Posts
- Natural or cultured pearls and precious or semi-precious stones, precious metals, and metals clad with precious metal.
- Jewellery, Goldsmiths’ and silversmith wares and other articles
- Currency
- Used personal and household effects
- Unworked and worked coral
- If the goods being transported are alcoholic liquor for human consumption, petroleum crude, high-speed diesel, petrol, natural gas or aviation turbine fuel.
- If the goods being transported are not treated as supply under Schedule III of the Act (Schedule III consists of activities that would neither be the supply of goods nor service like service of an employee to an employer in the course of his employment, functions performed by MP, MLA, etc.)
- Also, if the goods transported are empty cargo containers.
- Goods other than de-oiled cake, being transported are specified in notification No. 2/2017– Central Tax (Rate) dated the 28th of June 2017. A few of the goods that are included in the above notification are as follows:
- Curd, lassi, buttermilk
- Fresh milk and pasteurized milk not containing added sugar or other sweetening matter
- Vegetables
- Fruits
- Unprocessed tea leaves and unroasted coffee beans
- Live animals, plants and trees
- Meat
- Cereals
- Unbranded rice and wheat flour
- Salt
- Items of educational importance (books, maps, periodicals)
- Goods that are exempted under notification No. 7/2017– Central Tax (Rate) dated 28th June 2017 (supply by CSD to unit run canteens and authorized customers) and notification No. 26/2017– Central Tax (Rate) dated 21st September 2017 (consists of heavy water and nuclear fuels)
Transactions exempted from e-way bill
- An e-way bill is optional for Goods of value less than Rs. 50,000 (except in cases of mandatory Eway bill provisions like the movement of Handicraft goods and movement of goods for Inter-state Job work )
- If Goods are being transported by a non-motorized conveyance (For example, Horse carts or manual carts)
- If Goods are being transported:
- From the port, airport, air cargo complex and land customs station to an inland container depot (ICD) or a container freight station (CFS) for clearance by Customs
- Also, from ICD or CFS to a customs port, airport, air cargo, etc under customs bond
- From one customs port/station to another one under customs bond
- Goods transported under the customs supervision or customs seal
- If the goods are transported within the notified area
- Goods transported are transit From/to Nepal / Bhutan
- If Goods are transported to a weighbridge within 20kms and back to the place of business by being covered under a Delivery Challan
- Where Government or local authorities transport goods by rail as a consignor
- Goods transported are to/from the Ministry of Defence
Documents to carry in the case where the e-way bill is exempted
The e-way bill acts as an effective tool to check on tax evasion and to track the movement of goods. When it is not necessary to generate it, the transporter must ensure that a copy of the tax invoice or a bill of supply prepared according to the Law is submitted.
This ends the post on GST e-way bill exemption. If you have questions, drop them in the comment section below.
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