e-Way bill is a mandatory document generated to transport commercial goods in addition to the e-invoice. The validity period of the e-way bill is based on its distance and nature. One of the e-way bill’s key roles is to help calculate GST applicable on goods after delivery. Likewise, it also aids the issuing authorities in recording all taxable goods that move within and between states. This article discusses the validity of the e-way bill, its extension, and other details.
What is an e-Way Bill?
e-Way Bill is a document required to be generated for moving goods worth more than Rs 50,000, both interstate and intrastate. It contains information about the consignor, consignee, transporter, origin and destination, etc. As part of a compliance system, the person in charge of the movement of goods must upload the necessary information and create an e-way bill on the GST portal. e-way bill can be generated along with the e-invoice using the billing software.
When does the Validity Start?
e-Way bill validity starts at the time of first entry made in Part-B, i.e. vehicle entry is made the first time in case of road transportation or transport document number entry for rail/air/ship type, whichever happens first. However, the validity must be recalculated for successive entries in Part B.
How is the Validity Determined?
The validity of the e-way bill can be determined based on the approximate distance entered at the time of e-way bill generation. One day validity is provided for every 100 KM, and one additional day is added for part of 100 KM. For example, if an approximate distance is 310 KM, the validity period would be three days and one day. For the movement of over-dimensional cargo, validity is one day for every 20 KM (rather than 100 KM), and for every 20 KM or part, one additional day is added.
Extension in the Validity of e-Way Bill
Suppose the consignment does not reach its destination within the validity period due to exceptional circumstances like natural calamity, law and order issues, or trans-shipment delay. In that case, one can extend the validity of the e-way bill. The transport body must provide the reason and details while extending this time limit.
Who Can Extend the Validity?
The transporter transporting the consignment under the e-way bill system can extend the validity period at the expiry of the validity period.
How to Extend the Validity Period of the e-Way Bill?
The extended validity period option is available under the e-way bill. This option extends the e-way Bill 4 hours before and after its expiring validity.
The transporter needs to enter the e-way bill number, and then he would state his request reasons for the extension, from a place (present location), and the approximate distance to travel with Part B details. It should be noted, however, that he cannot modify the details of Part A. However, the extended validity will be allotted to him depending on how far he has yet to travel.
Computing the distance travelled and e-way bill validity are essential elements of the Indian e-way bill system. The e-way bill is generated based on the distance travelled by goods being transported, and its validity depends on the distance covered in a given time. Businesses must calculate the distance covered correctly to avoid penalty or legal implications. Moreover, the e-way bill validity may be extended in case of unforeseen delays or natural calamities. Overall, introducing the e-way bill system has contributed to streamlining goods transportation, making it more efficient.
