Chapter 11 – Tax Invoice, Credit & Debit

Notes, and E-Way Bill

Introduction
1. Invoices are documents used in sales transactions, providing details of goods or services sold,
including prices and taxes.
2. A tax invoice is crucial in the GST system, serving as proof of payment for goods or services and
enabling Input Tax Credit (ITC) claims.
3. Registered persons must possess a tax invoice or debit note to claim ITC.
4. Tax invoices are governed by Section 31 of the CGST Act, 2017.
5. Invoices can be manual or electronic, and there is no prescribed format.

Tax Invoice in Case of Goods

1. Registered suppliers of taxable goods must issue a tax invoice, including details like description,
quantity, value, and taxes.
2. The invoice should be issued before or at the time of goods' removal or delivery.
3. Specific rules apply for tax invoices on notified goods.
4. "Removal" refers to sending or collecting goods.
5. The term "tax invoice" includes revised invoices for earlier supplies.

Invoice in Case of Continuous Supply of Goods

1. Continuous supply refers to recurring goods provision, often through means like wire or
pipeline.
2. Invoices must be issued before or at the time of each statement or payment.

Invoice in Case of Goods Sent on Approval for Sale or Return Basis

For goods sent on approval for sale or return, invoices must be issued before or at the time of supply
or within 6 months from removal.

Tax Invoice in Case of Services

1. Suppliers of taxable services must issue a tax invoice within a prescribed time, with
descriptions, value, tax, and other particulars.
2. In cases where services cease before contract completion, the invoice should cover services
provided until cessation.

Time Limit for Issuing Tax Invoice

1. Taxable supply of services: within 30 days.
2. Certain providers (insurers, banks) have a 45-day limit.
3. Flexibility for inter-branch transactions of specified service providers.

Invoice in Case of Continuous Supply of Services

1. Continuous supply refers to recurring services for over 3 months.
2. Invoice issuance depends on payment due date, receipt of payment, or event completion.

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Particulars Contained in Invoice
1. Invoices must include supplier details, serial number, date, recipient details, HSN code,
descriptions, quantity, value, tax rates, place of supply, and more.
2. Amendment for November 2023:

(e) If recipient is Particulars of Invoice

unregistered and
value Particulars of
invoice of supply is
₹50,000 or more Name and address of the recipient and the address of delivery,
along with the name of the State and its code;
less than ₹50,000 Un-registered recipient may still request the aforesaid details
to be recorded in the tax invoice;
However, where any taxable service is supplied by or through
an ECO or by a supplier of OIDAR services to a recipient who
is unregistered, irrespective of the value of such supply, a tax
invoice issued by the registered person shall contain the
name and address of the recipient along with its PIN code and
the name of the State and the said address shall be deemed
to be the address on record of the recipient. [Inserted by
Notification No. 26/2022-CT dated 26-12-2022]
3. Signature not required for electronic invoices.

QR Code
1. Government can mandate QR codes on tax invoices.
2. QR codes contain e-invoice information and can be dynamic or static.
3. Criteria for mandatory QR codes for certain B2C invoices.
4. Exception for digital display of dynamic QR codes to encourage digital payments.

Non-Applicability of Requirement of Dynamic QR Code

1. Exemptions from Dynamic QR code for invoices issued to unregistered persons by specific
suppliers.
2. Exemptions include insurers, banks, goods transport agencies, passenger transportation
services, cinemas, and online information service providers.
3. Dynamic QR code not required for export supplies treated as B2B transactions.

Quoting of HSN/Accounting Code

1. The board can specify HSN code requirements based on recommendations.
2. Guidelines for mentioning the number of digits of HSN code based on annual turnover.
3. Exemption for lower turnover registered persons supplying to unregistered individuals.

Invoice Requirements in Case of Export/SEZ Supplies

1. Invoices for exports and SEZ supplies require specific endorsements.
2. Details of export invoices and changes for unregistered recipients.

Parameters/Details to be Captured in the Dynamic QR Code

1. Dynamic QR code information includes supplier GSTIN, UPI ID, payee's bank details, invoice
details, total invoice value, and GST breakdown.

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 2. Dynamic QR code facilitates digital payments.

Compliance with the Dynamic QR Code Requirements in Certain Cases

1. Clarifications on compliance scenarios related to Dynamic QR codes.
2. Cases include invoices with or without Dynamic QR codes, digital payments, and cross-
referencing.
a. Case 1 - Invoice with Dynamic QR Code
i. Supplier-issued invoices with Dynamic QR codes are compliant.
ii. Cross-referencing is required for various payment modes.
b. Case 2 - Electronic Mode of Payment with No Dynamic QR Code
i. Electronic modes with no Dynamic QR code must cross-reference payments
on invoices.
c. Case 3 - Pre-Paid Invoices
i. Pre-paid invoices do not require Dynamic QR codes if payments are cross-
referenced.
d. Case 4 - Compliance Through E-Commerce Operators
i. Compliance applies individually to each supplier.
ii. Compliance achieved through e-commerce operators can exempt suppliers
from Dynamic QR code requirements.
e. Case 5 - UIN Holders
i. Invoices to persons with Unique Identity Numbers (UIN) are considered B2C
and require Dynamic QR codes.
f. Case 6 - UPI ID and Bank Details
i. UPI ID suffices; separate bank details are not required in Dynamic QR codes.
g. Case 7 - Authorized Payment Collectors
i. Authorized payment collectors' UPI IDs can replace the supplier's in the
Dynamic QR code.
h. Case 8 - Export Services to Recipient Outside India
i. No Dynamic QR code required for services to foreign recipients with payment
in foreign currency.
i. Case 9 - Retail Sales with Digital Display
i. Unique order ID or sales reference number linked to invoices can replace
invoice numbers in Dynamic QR codes.
j. Case 10 - Part-Payment Received
i. Dynamic QR code should specify the remaining amount payable after part-
payment, advance, or adjustment received for a supply.

Invoice Cum Bill of Supply [Rule 46A]

1. Allows the issuance of a single document, an "invoice-cum-bill of supply," when a registered
person sells taxable and exempted goods or services to an unregistered person.
2. The invoice-cum-bill of supply should contain all the necessary particulars as specified under
Rule 46 or Rule 54, depending on the nature of the supply, along with the requirements of
Rule 49. [Inserted by Notification No. 26/2022-CT dated 26-12-2022]

Manner of Issuing Invoice [Rule 48]

1. For goods suppliers, prepare invoices in triplicate: original for recipient, duplicate for
transporter, triplicate for supplier.

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 2. For services suppliers, prepare invoices in duplicate: original for recipient, duplicate for
supplier.
3. Serial numbers electronically submitted via FORM GSTR-1.
4. E-invoicing requirements for specified registered persons based on turnover.
5. Invoices not complying with e-invoicing provisions are invalid.
6. E-invoice eliminates triplicate/duplicate requirements.

E-Invoicing
1. Taxpayers generate GST invoices, report them to the Invoice Registration Portal (IRP), receive
unique Invoice Reference Numbers (IRNs), and include IRNs in e-invoices.
2. Covers invoices, credit/debit notes, B2B supplies, and exports.
3. Benefits include auto-reporting, standardization, faster payments, cost reduction, reduced tax
evasion, and prevention of fake invoices.
4. Applicable to registered persons with turnover exceeding ₹10 crores (B2B and exports).
5. Exemptions for specific cases and entities like SEZ units and insurers.
6. Not applicable to Input Service Distributors (ISD).
7. Differentiates e-invoicing for B2B and B2C supplies.
8. Process includes generation, uploading to IRP, IRN assignment, digital signing, and sharing.

Exemption from E-Invoicing

1. Exemption from e-invoicing applies to the entire entity, not specific supplies.
2. Entities like banks, insurers, SEZ units, etc., exempted if aggregate turnover exceeds ₹10 crores.

Revised Tax Invoice on Issuance of Registration Certificate

1. Revised invoices issued when registration is granted after initial transactions.
2. Allows for consolidated revised invoices for unregistered recipients and inter-state supplies.
3. Specifies particulars for revised tax invoices.
4. Differentiates revised invoices for tax demands and inadmissible ITC.
5. Tax demands due to fraud or other circumstances require a revised invoice with "INPUT TAX
CREDIT NOT ADMISSIBLE."

Note: Sections 74, 129, and 130 deal with tax liability, detention and release of goods during
transportation, and confiscation of goods or conveyances, respectively, in cases of fraud or non-
compliance.

Provisions Where Tax Invoice is Not Required to be Issued

1. No Tax Invoice for Low-Value Supplies: Registered persons, except those supplying services
related to cinema admission in multiplex screens, need not issue a tax invoice if the value of
goods or services supplied is less than ₹200, the recipient is unregistered, and the recipient
doesn't demand an invoice. Instead, a consolidated tax invoice can be issued at the end of each
day for such supplies.
2. Applicability to Bill of Supply: These provisions also apply to the issuance of a bill of supply.

Receipt Voucher
1. Issuance of Receipt Voucher for Advances: Registered persons who receive advance payments
for goods or services must provide a receipt voucher or a document showing payment details.

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 2. Contents of Receipt Voucher: The receipt voucher should include supplier and recipient details,
a unique serial number, date of issue, a description of goods or services, advance amount, tax
rates, place of supply, and signature or digital signature.
3. Rate of Tax and Nature of Supply for Undetermined Cases: If the tax rate or nature of supply is
undetermined at the time of receiving the advance payment, a flat tax rate of 18% should be
applied, and it will be treated as an inter-state supply.

Refund Voucher
1. Issuance of Refund Voucher for Advance Refunded: When a registered person receives advance
payment but no supply is made, and no tax invoice is issued, a refund voucher can be issued
to the person who made the payment.
2. Contents of Refund Voucher: The refund voucher should include supplier and recipient details,
a unique serial number, date of issue, reference to the receipt voucher, description of goods or
services, refund amount, tax rates, place of supply, and signature or digital signature.

Invoice Requirements in Case of Reverse Charge

1. Buyer to Prepare Invoice for Purchases from Unregistered Supplier or under Reverse Charge: If
a registered person is liable to pay tax under reverse charge (Section 9(3) or 9(4)), they must
issue an invoice for goods or services received from an unregistered supplier.
2. Payment Voucher Issuance: A payment voucher must be issued at the time of making payment
to the supplier, containing essential details.
3. Additional Requirements for Goods Transport Agencies (GTAs): GTAs can issue a tax invoice or
an alternative document for services provided. The alternative document must include details
like the gross weight of the consignment, consigner and consignee names, goods carriage
registration number, goods details, place of supply, GSTIN of the person liable for tax, and other
required information.

Bill of Supply
1. Bill of Supply for Exempted Goods/Services or Composition Scheme: Registered persons
supplying exempted goods/services or operating under the Composition Scheme issue a bill of
supply instead of a tax invoice. The bill omits tax rate and amount information.
2. Exception for Low-Value Supplies: A bill of supply is not required if the value of supplies is less
than ₹200, subject to certain conditions.

Tax Invoice in Special Cases

1. Relaxation from Tax Invoice Issuance for Notified Services: The government can specify
categories of services or supplies where tax invoices are mandatory through notifications,
along with details of time and manner.
2. Notified Suppliers with Options: Certain suppliers like insurers, banks, etc., can issue a
consolidated monthly tax invoice without serial numbers or recipient addresses. GTAs have
additional requirements for issuing alternative documents.
3. Ticket as Invoice for Passenger Transportation: Ticket issued by suppliers offering passenger
transportation services serves as a tax invoice without the need for a serial number, recipient
address, or signature as per the IT Act.
4. Electronic Ticket as Invoice for Multiplex Screens: Suppliers providing cinema admission
services in multiplex screens must issue electronic tickets, which are considered tax invoices.
The tickets don't require recipient details but must contain other specified information.

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Transportation of Goods Without Issue of Invoice
1. Cases for Delivery Challan Instead of Invoice:
a. Consigner can use a delivery challan instead of an invoice in specific situations.
b. Challan should have a unique serial number.
c. Used when supplying liquid gas, transporting goods for job work, testing, or other
cases notified by the Board.
2. Contents of Delivery Challan: Date, number, consigner, consignee details, HSN code, goods
description, quantity, taxable value, tax details, place of supply, and signature.
3. Three Copies of Delivery Challan: Prepared in triplicate: Original for consignee, duplicate for
transporter, triplicate for consigner.
4. Declaration: E-way bill declaration required when using a delivery challan.
5. Tax Invoice After Delivery: Supplier must issue tax invoice if not done during goods removal.
6. Goods Transported in CKD/SKD or Batches/Lots:
a. Complete invoice before first consignment, subsequent with delivery challan.
b. Each consignment with certified copy of invoice.

Supply of Goods on Approval Basis: Clarification and Guidelines

Suppliers of jewelry traveling for approval by buyers can use a delivery challan and issue tax invoice
upon supply. Inter-state supplies attract integrated tax.

Guidelines for Artwork Supply in GST

1. Artwork on approval basis: Can use delivery challan, issue tax invoice upon supply.
2. Inter-state artwork supplies: Attract integrated tax.
3. Supply to galleries: Not considered supply; tax paid by buyer upon selection.

Goods Sent/Taken Out of India for Exhibition

1. Not considered supply; no payment involved.
2. Record maintenance and documentation guidelines provided.
3. Supply deemed to occur if not sold or brought back within six months.
4. Tax invoice issued when goods not brought back within stipulated time.
5. Refund claims possible upon supply.

Facility of Digital Payment to Recipient

1. Government can specify electronic payment methods for registered individuals.
2. Recipient given choice based on government recommendations.
3. Payment conditions and restrictions determined by the government.

Prohibition of Unauthorized Collection of Tax

1. Unregistered Person Not to Collect Tax:
a. Unregistered persons cannot collect tax for goods or services.
b. Only registered persons can collect tax as per Act and rules.
2. Amount of Tax Indication:
a. Tax amount must be clearly indicated on documents when supply involves payment.
b. Tax amount is part of the supply price.

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Credit and Debit Notes
1. Issuance of Credit Note [Section 34(1)]:
a. Credit note for goods or services supply.
b. Situations for issuance: Overvaluation, excess tax charged, returns, or deficient
goods/services.
c. Issued within a financial year.
d. Registered person issues under Section 34(1).
2. Details of Credit Note in Return [Section 34(2)] [Amended by Finance Act, 2022]:
a. Declared in return by 30th November or annual return date, whichever is earlier.
b. Tax liability adjusted as prescribed.
3. Output Tax Liability Not Reduced If Tax Passed On: Supplier can't reduce output tax if tax and
interest already transferred.
4. Secondary Discounts - No Credit Note:
a. Secondary discounts after supply, not reducing tax liability.
b. Financial or commercial credit notes may adjust supply value.
5. Issuance of Debit Note [Section 34(3)]:
a. Debit note for under-valuation or undercharged tax.
b. Issued by registered person under Section 34(3).
c. Contains financial year supply details.
6. Details of Debit Note in Return [Section 34(4)]:
a. Declare in return, adjust tax liability.
b. "Debit note" includes supplementary invoice.
7. Contents of Credit and Debit Note [Rule 53(1A)]: Supplier's details, nature, serial number, date,
recipient's details, corresponding invoice details, value, tax rate, and signature.

E-Way Bill
1. Abolishment of Check Posts: GST removed check posts for smooth goods movement.
2. Introduction of E-Way Bill System:
a. E-Way Bill system for goods movement compliance.
b. Applied inter-state since April 1, 2018, gradually for intra-state.
3. Process of E-Way Bill:
a. Pre-transportation electronic information submission.
b. Acknowledgment number as valid transportation document.
4. Uploading Details on Common Portal:
a. Taxpayer uploads transaction data to common portal.
b. Generates verifiable document for all involved parties.

What is E-Way Bill?

1. Definition of Waybill: Waybill is shipment document with sender, receiver, route details.
2. What is an E-Way Bill?:
a. Digital waybill for goods movement compliance.
b. Generated electronically on GST portal.
c. Uploaded by goods' transporter.
3. Purpose of E-Way Bill:
a. Electronic evidence of goods movement.
b. Records, verifies goods' details for all parties.

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Benefits of E-Way Bill
1. Eliminates check posts for smoother transit.
2. Speeds up goods movement, reduces delays.
3. Improves turnaround time, cost savings.

Generating an E-Way Bill

1. E-Way Bill Form and Portal: Generated using Form GST EWB 01 on www.ewaybillgst.gov.in.
2. Multiple Modes of Generation: Web portal, Android App, SMS, Bulk Upload Tool, API
integration.
3. Accessibility to Suppliers, Recipients, Transporters: SMS facility for generating, canceling,
updating E-Way Bills.
4. Registration Requirement: Registered GST persons on portal, transporter enrollment for E-Way
Bill.

Provisions Relating to Inspection of Goods in Movement

1. Carrying of E-Way Bill [Section 68(1)]:

a. Requirement for specified conveyances.
b. Documents and devices verify goods movement.
2. Validation of E-Way Bill [Section 68(2)]:
a. Documents' details verified as prescribed.
b. Ensures authenticity and accuracy.
3. Transit Check of E-Way Bill [Section 68(3)]:
a. Proper officers conduct transit checks.
b. Documents and inspection cooperation required.

Conveyance Definition
"Conveyance" includes a vehicle, vessel, and aircraft [Section 2(34)].

Information to be Furnished Prior to Commencement of Movement of

Goods and Generation of E-Way Bill [Rule 138]
1. Furnishing of Information if Consignment Value Exceeds ₹50,000 [Rule 138(1)]:
a. Registered persons to provide goods info for values > ₹50,000.
b. Applies to various types of movements.
c. Furnished electronically in Part A of FORM GST EWB-01.
2. Importance of Providing Information Before Movement:
a. Crucial to provide info before movement starts.
b. Applies to all movement types within or between states.

Who Causes Movement of Goods?

1. Supplier Causes Movement: Registered supplier transporting goods.
2. Recipient Causes Movement: Recipient arranges transportation.
3. Unregistered Supplier and Registered Recipient:
a. Movement caused by recipient.
b. Unregistered supplier to registered recipient.

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Meaning of Consignment Value of Goods [Explanation 2]
1. Determined per Section 15.
2. Declared in invoice, includes taxes but not exempt supplies.

Special Situations Where E-Way Bill Needs to be Issued Even if the Value
of the Consignment is Less Than ₹50,000
1. Inter-State Transfer by Principal to Job-Worker:
a. E-Way Bill required regardless of consignment value.
b. Generated by Principal or job-worker if GST registered.
2. Inter-State Transfer of Handicraft Goods by Exempted Person:
a. E-Way Bill required, irrespective of value.
b. Applies to exempted persons under GST registration.

E-Way Bill in case of 'Bill To Ship To' Model

1. In a "Bill To Ship To" model:
a. 'A' orders goods from 'B' to be sent directly to 'C'.
b. 'B' ships the goods to 'C' on behalf of 'A'.
c. 'C' is the recipient of the goods.
2. Two supplies and tax invoices involved:
a. Invoice 1: 'B' invoices 'A' for supplied goods.
b. Invoice 2: 'A' invoices 'C' for received goods.
3. CGST Rules, 2017 allow 'A' or 'B' to generate the e-way bill for the entire transaction.
4. Circular No. 47/21/2018-GST dated 08-06-2018 clarifies e-way bill requirements for DTA and
SEZ units within the same state.

Information to be Furnished in E-Way Bill

1. E-way bill Form GST EWB-01 has two parts:
a. Part A: Details like GSTIN of supplier and recipient, delivery place, document info,
value, HSN code, and reason for transport (for consignments over ₹50,000).
b. Part B (transport details): Includes transporter info and vehicle number (for road
transport).
2. Exceptions: Part A info can be filled by others (transporter, e-commerce operator, or courier
agency) if authorized.

Mandatory E-Way Bill Generation

1. Registered person transporting goods by road must generate the e-way bill.
2. If not generated, and goods handed to a transporter, the registered person provides
transporter info.
3. For rail, air, or vessel transport, the registered person generates the e-way bill.
4. Rail transport: E-way bill not needed during transit but must be produced during delivery.
5. Optional generation: E-way bill can be generated even for consignments below ₹50,000.
6. Unregistered persons can generate e-way bills.
7. Unregistered supplier to registered recipient: Recipient is considered the cause of movement
if known during goods' movement.

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When Conveyance Details in Part-B Are Not Mandatory
1. E-way bill for road transport is valid when Part-B details are furnished, except for specific short-
distance scenarios (within a state/UT, ≤ 50 km).
2. Exception 1 - Consignor to Transporter: No conveyance details needed if goods moved from
consignor's place to transporter for further transport over a short distance.
3. Exception 2 - Transporter to Consignee: No conveyance details needed if goods moved from
transporter's place to consignee as the final destination over a short distance.

Unique E-Way Bill Number (EBN)

After creating the e-way bill, a unique EBN is provided to the supplier, recipient, and transporter on the
portal.

Transfer of Goods between Conveyances – E-Way Bill Update

If goods move between vehicles during transport, the consignor, recipient, or transporter must update
conveyance details in Part B of the e-way bill on the portal.

Assignment of E-Way Bill Number to Another Transporter

1. Consignor, recipient, or transporter who filled Part A can assign the e-way bill number to
another transporter.
2. Once transporter updates Part B, the original assignor cannot reassign the e-way bill.

Multiple Consignments in One Conveyance

1. Transporter can indicate e-way bill serial numbers for multiple consignments on the portal and
generate a consolidated e-way bill (FORM GST EWB-02).
2. A consolidated e-way bill includes multiple e-way bills for different consignments in a single
vehicle.
3. It simplifies transportation when multiple consignments have different senders and recipients.

Transporter to Generate E-Way Bill

1. If consignor/consignee hasn't generated an e-way bill, and total goods value is > ₹50,000,
transporter generates e-way bill for inter-state supply.
2. Transporter can generate e-way bill based on invoice, bill of supply, or delivery challan.
3. Provisions of rule 138(7) not yet implemented.

E-Way Bill Information for GST Returns

1. Part A info in FORM GST EWB-01 is available to registered suppliers for GSTR-1 filing.
2. Unregistered suppliers receive electronic notifications about their e-way bills.

Cancellation of E-Way Bill

1. E-way bill can be electronically canceled if goods aren't transported as per e-way bill details.
2. Cancellation within 24 hours of generating e-way bill.
3. Cannot cancel if already verified in transit per Rule 138B.
4. Valid for 15 days, allowing updates to Part B in this period.
5. Canceled e-way bill becomes invalid for transportation.

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Validity Period of E-Way Bill/Consolidated E-Way Bill
1. Validity depends on distance: 200 km for one day (road), 20 km for one day (over dimensional
cargo or ship).
2. Commissioner can extend validity for certain goods.
3. Transporter can extend validity within 8 hours of expiry.
4. Validity starts when first entry in Part B is made.
5. The "relevant date" is the date when the e-way bill is generated, and the validity period is
counted from the time of generation. Each day is considered valid until midnight of the
following day.
6. Examples of validity period calculation:
a. If an e-way bill is generated at 00:04 hrs. on 14th March, the first day would end at
midnight on 15-16 March, and the second day would end at midnight on 16-17 March,
and so on.
b. If an e-way bill is generated at 23:58 hrs. on 14th March, the first day would end at
midnight on 15-16 March, the second day would end at midnight on 16-17 March, and
so on.
7. Validity isn't recalculated for subsequent Part B entries.

Question 1

Agni Ltd. a registered supplier wishes to transport cargo by road between two cities situated at a
distance of 368 kilometres. Calculate the validity period of e-way bill under rule 138(10) of CGST Rules,
2017 for transport of the said cargo, if it is over dimensional cargo or otherwise.

Solution

The validity period of e-way bill under rule 138(10) of the CGST Rules, 2017 for transport of cargo by
road between two cities situated at a distance of 368 km is as under:

1. If it is over dimensional cargo: the validity period of the e-way bill is one day from relevant date
upto 20 km and one additional day for every 20 km or part thereof thereafter. Thus, validity
period in given case = 1 day + 18 days = 19 days
2. If it is a cargo other than over dimensional cargo: the validity period of the e-way bill is one day
from relevant date upto 200 km and one additional day for every 200 km or part thereof
thereafter. Thus, validity period in given case = 1 day + 1 day = 2 days

Acceptance/Rejection of E-Way Bill

1. Details of e-way bill made available to supplier/recipient.
2. Supplier/recipient can accept or reject consignment through the portal.

Deemed Acceptance by Recipient if No Communication Within 72

Hours [Rule 138(12)]
If the recipient does not communicate their acceptance or rejection of the details within 72 hours after
they have been made available to him on the common portal, it will be considered that he has accepted
the said details.

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Validity in Other States [Rule 138(13)]
1. The e-way bill that is generated according to Rule 138 of the Goods and Services Tax Rules,
whether it is generated in one state or another, is valid for transportation of goods in every
state and union territory.
2. Other important points to remember are:
a. An e-way bill is not considered valid if it does not have a vehicle number mentioned on
it. It is important to include the vehicle number associated with the transportation of
goods.
b. Once an e-way bill is generated, it cannot be edited or modified for any mistakes.
However, it can be cancelled within 24 hours of its generation if there is a need to do
so.
c. The e-way bill can be updated with the vehicle number multiple times. If there are
changes in the vehicle that is carrying the goods, the updated vehicle number should
be mentioned in the e-way bill.
d. It is important to have the correct and latest vehicle number mentioned on the e-way
bill. This ensures that the information matches with the actual vehicle that is
transporting the goods. If the e-way bill is checked by the concerned department, the
vehicle number mentioned should match with the vehicle carrying the goods.

Situations Where E-Way Bill is Not Required to be Generated [Rule

138(14)]
Notwithstanding anything contained in this rule, no e-way bill is required to be generated in various
situations, including:

1. Transportation of specific goods like LPG for household use, kerosene under PDS, postal
baggage, precious metals, currency, used personal and household effects, and more.
Amendment for November, 2023:
Jewellery, goldsmiths’ and silversmiths’ wares and other articles (Chapter 71) “excepting
Imitation Jewellery (7117)”. [Amended w.e.f. 26-12-2022]
2. When goods are transported by non-motorized conveyance.
3. In certain movements specified under the GST Rules.
4. Transportation of specific exempted goods.
5. Transportation of goods like alcoholic liquor, petroleum crude, natural gas, etc.
6. In cases where the supply of goods is treated as no supply.
7. Transit cargo to Nepal or Bhutan.
8. Specific movements caused by the Ministry of Defence.
9. Transportation by government entities like Central Government or local authorities for rail
transport.
10. Movement of empty cargo containers.
11. Short-distance movement for weighment purposes.
12. Movement of empty cylinders for liquefied petroleum gas.

Rule 138A: Documents and Devices to be Carried by a Person-in-Charge

of a Conveyance
This rule outlines the documents and devices that a person in charge of a conveyance must carry, which
include invoices, bills of supply, delivery challans, e-way bills, and RFID devices for specified

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transporters. It also introduces the use of QR codes with Invoice Reference Numbers (IRNs) for
electronic verification.

Whether Carrying Physical Copy of Invoice is Compulsory During

Movement of Goods in Cases Where Suppliers Have Issued Invoices in
the Manner Prescribed Under Rule 48(4) of the CGST Rules, 2017 (i.e.,
in Cases of E-Invoice)?
Carrying a physical copy of the tax invoice is not compulsory if an e-invoice has been generated under
Rule 48(4) of the CGST Rules. The QR code with an embedded IRN can be presented electronically for
verification by the proper officer.

Rule 138B: Verification of Documents and Conveyances

This rule allows authorized officers to stop and check vehicles carrying goods to verify e-way bills. It
also mandates the installation of RFID readers for verification purposes. Physical verification can be
conducted if there are suspicions of tax evasion.

Rule 138C: Inspection and Verification of Goods

After inspecting goods in transit, proper officers must record summary reports online within specific
timeframes. If goods have already been physically verified during transit, further verification is not
required unless there are suspicions of tax evasion.

Rule 138D: Facility for Uploading Information Regarding Detention of

Vehicle
Transporters can submit information regarding the detention of a vehicle if it is stopped and held for
more than 30 minutes.

Rule 138E: Blocking of E-Way Bill Generation Facility

This rule pertains to the blocking of e-way bill generation for certain categories of taxpayers who have
not complied with GST filing requirements. It outlines conditions for unblocking e-way bill generation
and the authority of the Commissioner in this regard.

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