• Divya Dhomne

All about the E-way bill

Updated: Aug 3, 2020

Majority of the shipments in the Transportation & Logistics (T&L) industry happen via roadways. However, there are delays and lags in the supply chain due to poor roads and traffic congestion in India. However, two regulatory requirements impact the logistics companies

  • The Central Motor Vehicle Rules (CMVR) 2016 legislates that (w.e.f. April 1st 2017)

  a. Maximum standard length for car transporters will be 18.75 metres.

  b. Trailers must have a sliding inspection window of 400x300mm for verification purposes.

  • The enabling of invoice tracking in the E-way bill implementation under the GST in 2018.

What does the Transporter do?

Initially, the transporter's duty used to be delivering goods. However, after the E-way bill implementation, the transporters now have additional duties as well. The transporters now have to generate E-way bills on the National Informatics Centre (NIC) portal for shipments costing above Rs 50,000 and deliveries beyond 10 km. If there are any intra-state deliveries they need an intra-state E-way bill. If for any reason there's a problem with delivering the shipments, the E-way bills must be cancelled within 24 hours or the transporters risk getting penalised for up to Rs 25,000. According to the 14-day trial run, E-way bills also improved the efficiency of the supply chain.

Acceptance or rejection by the recipient 

A receiver can choose to accept or reject an E-way bill. The bill is generally considered accepted if the recipient takes no action within 72 hours of the availability of the E-way bill on the NIC portal.

Multiple shipments in one vehicle 

if a container is transporting more than one order, the transporter is required to generate an E-way bill for each order on the portal. The recipient of each order needs to accept or reject the order on the NIC portal.

Verification of goods 

The transporter must have a 400X300mm sliding inspection window for the verification of goods in transit. If a shipment is stopped for more than 30 minutes, the transporter needs to update this information on the NIC portal.

Change of conveyance mode during transit 

In case something happens to the transporters vehicle, they need to generate a new bill which states the change of vehicle. However, before changing the transport vehicles, the transporter needs to submit Form GST INS-1.

Goods not transported 

If the bill is generated but the goods cannot be transported, the transporter must cancel the E-way bill within 24 hours. However, this cannot be done if the goods are already in transit or there is a change in the vehicle.

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