According to GST regulations, individuals and businesses transporting goods valued over Rs. 50,000 must generate an online e-way bill for the consignment. Part-A of the e-way bill must outline details about the GSTIN of the supplier and recipient, document number, date, value of goods, HSN code, and reason for transportation. Part-B outlines the transport document number and transport vehicle number.
However, there are certain scenarios when an e-way bill is not required. For instance, if you are a small supplier, transporting goods under Rs. 50,000 to fulfil sales orders received via an online marketplace, you may not need to generate an e-way bill. This article offers a guide on five scenarios where e-way bills need not be generated.
Understanding e-way bill exemptions: Five scenarios where e-way bills are not required
Scenario 1: Transporting certain exempt goods
Transporting of goods outlined in Annexure to Rule 138(14) of the CGST Rules, 2017 are also exempt from e-way bill requirements. Some of the goods covered under this exemption are listed below:
- LPG for supply to household and NDEC customers.
- Postal baggage that’s transported by the Department of Posts
- Kerosene oil sold under PDS
- Precious/semi-precious stones, natural/cultured pearls, precious metals and metals clad with precious metals
- Jewellery, silversmiths’ and goldsmiths’ wares and other related articles
- Used personal and household effects
- Coral (unworked and worked)
- Currency
Other than that, the e-way bill exemption also applies to the transportation of alcoholic liquor for human consumption, crude, petrol, natural gas, and aviation turbine fuel. If the goods transported are treated as no supply under Schedule III of the Act, no e-way bill needs to be generated. Similarly, essential goods like fruits, vegetables, milk, meat, and curd are exempt from e-way bill requirements.
Scenario 2: Transporting goods valued under Rs. 50,000
According to GST rules, an e-way bill is applicable when the value of goods is above Rs. 50,000. If you are transporting goods valued below Rs. 50,000, you do not need to generate an e-way bill. For instance, if you are a small trader who has taken an NBFC business loan to start an SME and is transporting goods for the same purpose under the prescribed valuation limit, you don’t need to generate an e-way bill. This makes compliance easier.
Note: This Rs. 50,000 valuation limit does not apply to the transport of handicraft items and goods sent out to a job worker. In both cases, e-way bills need to be generated, regardless of the consignment value.
Scenario 3: Transporting goods within 20 Km
In case the goods are being moved for a short distance of 20 Km from the place of the consignor’s business to a weightbridget (within the same state) for weighment, no e-way bill is required. Similarly, no e-way bill generation is needed if the goods are moved from the weighbridge back to the place of business (in the same state). However, a delivery challan issued under Rule 55 must accompany the consignment for this exception to apply.
Scenario 4: Transporting goods via non-motorised conveyance modes
E-way bill is not required if you are moving goods by non-motorised vehicles. Non-motorised vehicles are bullock carts, rickshaws, and hand-pulled trolleys. In case goods are transported using these conveyance modes, no e-way bill is needed. The freedom from e-way bill generation allows small-scale traders to move goods without facing compliance hassles.
Scenario 5: Transporting goods under customs bonds
Another scenario where an e-way bill is not needed is when goods are moved under customs bonds. If the goods are transported from an airport, port, cargo, or land customs station to a freight station or an inland container depot for the purpose of customs clearance, no e-way bills are needed. Goods that are being transported under customs supervision are free from e-way bill generation requirements.
Conclusion
The e-way bill system helps simplify the taxes on the transportation of goods, ensuring better compliance with GST laws. While e-way bills are mandatory for consignments over Rs. 50,000, there are certain exceptions to the law. E-way bills are not needed when transporting goods via non-motorised vehicles, for movement of goods under customs seal, short distance movement of goods to weighbridge within 20 Km, and when transporting exempt items. Understanding these exemptions will help traders ensure compliance.