As a business owner, balancing transportation with regulatory compliance can be challenging. From delays in paperwork to navigating complex transportation rules, the process can be overwhelming. This is where the GST E-way bill rules come into play. It simplifies the movement of goods in compliance with India’s GST framework. However, one thing that is foremost for compliance in this case is e-way bill validity period.
Therefore, every transporter must not only generate an E-way bill to ensure a smooth flow of goods and avoid E-way bill penalties but also ensure it is valid during the entire transit. Let us understand e-way bill validity period and ways of extension in the blog below.
How is E-way Bill Validity Period Calculated?
The E-way bill validity period is determined by the approximate distance covered by the goods.
The validity periods for ODC and other means of transportation are as follows for:
- Over Dimensional Cargo: These goods exceed the standard size or weight limits set by transportation authorities for regular cargo. These limits include factors such as length- 12 meters, height- 3.8 meters, width- 2.6 meters, or weight- 40 tons. These are typically defined by road, rail, air or water transportation regulations. Examples include Construction equipment like bulldozers, Industrial machineries or wind turbines.
- For any distance up to 20 kms: The validity period is of 1 day
- Thereafter for every 20 kms or part thereof: The validity period increases by 1 day
- Other than Over Dimensional Cargo: For goods transported up to:
- 100 kms: E-way bill remains valid for 1 day
- Every 100 kms or part thereafter: The validity is extended by 1 day.
E-way Bill Expiry
The E-way bill expires at midnight on the last valid day. If the bill expires before delivery due to unforeseen circumstances, the taxpayer may run into regulatory concerns. He may face E-way bill penalties and be subject to tax authority scrutiny. To avoid this, you should extend the E-way bill or generate a new one by cancelling the expired bill.
How to Extend the E-way Bill Validity?
A taxpayer can extend the E-way bill validity via the GST portal, if they meet the extension conditions. You can extend the e-way bill both before and after 8 hours of expiry of the validity period up to 360 days from their original date of generation. The extension is also based on the remaining distance to travel. The extension validity will be extended for 1 day for every 100 kms or part thereof. It thus becomes essential for the taxpayer to consider every factor that might influence the validity period.
What are Some E-way Bill Penalties for Non-Compliance?
Penalties for E-way bill non-compliance can be significant. To avoid them, it’s crucial to understand them first:
1. Penalty:
– ₹10,000 or
– Taxes evaded, whichever is higher,
if goods are transported without a valid or expired E-way bill. This is in accordance with the Section 122 of the CGST Act, 2017.
2. If any goods being transported are found missing from the e-way bill, they can be detained or seized as per the Section 129 of CGST Act, 2017.
How to avoid E-way bill penalties?
To avoid E-way bill non-compliance, here are some strategies:
- Track timelines:
– Ensure that the E-way bill is valid for the entire transit. Monitor the bill closely, especially for long-distance consignments
– Double check the validity before the goods reaches their destination or when it crosses any state borders. - Real time monitoring:
There are many logistics tools and apps that can help track the E-way bill validity. These tools also notify you before the bill expires. GSTrobo®̥ is one such solution that can help you track your e-way bill validity. - Extension of E-way bill:
If there’s a potential delay, ensure that you update the E-way bill before the validity period expires.
Conclusion
It is thus crucial to ensure that the E-way bills are generated correctly and are extended, if necessary. This could help the taxpayers avoid hefty penalties. For streamlined tax management and compliance with e-way bill rules, explore GSTrobo’s e-way bill software‘s key features.
Frequently Asked Questions About e-Way Bill Validity and Extension
1. How to calculate the distance in an E-way bill?
The E-way bill validity is based on the estimated distance between the supplier’s and recipient’s locations. For ODC, the e-way bill validity period is 1 day for every 20 km and for means of transportation other than ODC, it is 1 day for every 100 km.
2. How to Calculate E-way bill validity?
Let us understand this with an example: If you generate an E-way bill at 11.20 pm on 14th June. If the goods transported is up to 100 kms, then the bill shall expire at midnight of 15th June.
3. Who is responsible for generating E-way bill?
The primary responsible person is the Seller or the Consignor (the person sending the goods). However, the transporter also must ensure the validity of the bill throughout the transit.
4. Is an E-way bill valid if it expires before the goods reach its destination?
No, the E-way bill stands invalid if it expires before the goods reach. It becomes important to track the validity of the E-way bill. If there is any unforeseen delay, you may extend the E-way bill.
5. Can I extend the E-way bill during the transit?
Yes. You can extend the E-way bill if the consignment is facing any unforeseen delay. The facility to extend is available on GST portal.
