Generating an e-waybill is a mandatory requirement for consignors or consignees to transit their shipment if its value exceeds the limit of Rs. 50,000. The consignments can not be legally transported without generating an e-waybill under GST laws and regulations. The e-waybill comes up with a fixed validity period within which the goods are required to be delivered.
However, if you find that transportation is not possible within the initially mentioned date and time, then you have to apply for the e-waybill extension process to legally get some more time for delivery based on the distance remaining to be covered. You can also assign your transporter to extend your e-waybills by using their transporter ID.
In this blog, we’ve mentioned all the procedures and obligations related to the e-waybill extension process by the transporter. Without any delay, let’s begin the guide !!
1. Transporter’s role in E-waybill extension procedures
As far as the e-way bill extension procedure is concerned, transporters play a crucial role in conducting an efficient movement of goods. When they find that the consignment can not be delivered within the valid time duration of the e-waybill, they are required to raise a request for an electronic waybill extension by following the regulatory requirements and time constraints.
Below, we’ve mentioned a three-step process for the transporters to extend the e-way bill’s validity period following GST regulations.
- Initiation of Extension: First, transporters are responsible for initiating the extension process within 8 hours before and after the e-waybill expiry. The extension process can be done by collaborating with a consignor or consignee. The transporters are obliged to submit the extension request with the necessary details like e-waybill number, transport document number, consignment’s current location, valid reason for the extension, and other basic information.
- Processing and Extension: You have to submit the e-waybill extension request through the official portal using an authorized account. Make sure that all the provided details are accurate and compiled with the current tax laws and regulations. Next, your extension request goes through a verification process under tax or regulatory authority. In this process, authorities approve or reject your request and consider your e-waybill for a new, valid, extended period.
- Communication and Compliance: When your e-waybill is approved for an extension period, the authorities will inform the transporter about the updated e-waybill details. This official document will help you freely transit the consignment, as you just have to show a newly updated e-waybill to the inspection team. Make sure that you follow the latest guidelines of the Goods and Services Tax Network (GSTN). In this way, you’ll gather the most up-to-date information.
2. Legal obligations for transporters during E-waybill extension
Here, we’ve mentioned some of the legal obligations for transporters during e-waybill extension.
- Mandatory Extension: Transporters are legally obliged to apply for an e-waybill extension if they are in any unpredicted circumstances that have delayed the goods’ delivery. It can be due to natural calamities, breakdowns, traffic disruptions, transhipment issues, or any other problem.
- Valid Reason and Time Constraint: Transporters have to mention the valid reason for extending the consignment’s time duration. The reason should be very well explained in the request. Extension requests can be made 8 hours before and after the e-waybill expires. If you fail to make your extension request during this time frame, you have to bear penalties.
- Update Changes: If the transit vehicle carrying the goods or consignment changes due to breakdown or transhipment, the transporter has to update the new vehicle number on the e-waybill within 24 hours of the time frame. Plus, you also have to update for other changes like route, distance, etc., through the e-waybill portal.
- Submit Accurate Information: The Transporter has to submit the right and accurate information while requesting an e-waybill extension. It includes the details like e-waybill number, the reason for the extension, or any other information. Otherwise, you would have to bear penalties.
- Document Compliance and Record Keeping: As a transporter, you must carry the extended e-waybill document during transit. Otherwise, you will have to face penalties or delays in your transit. Moreover, you are also obliged to keep records of extended e-waybills for a certain period. It would help you in case of any audit or inspection.
- Follow Recent Regulatory Requirements: Transporters have to follow all the regulatory requirements stated by tax and regulatory authorities. Therefore, you, as a transporter, should also revise all the rules related to e-waybill extension and goods transit.
3. Compliance requirements for transporter-led extensions
Listed below are some compliance requirements for transporters-led extensions.
- Timing: As per compliance requirements, transporters can extend e-waybill within 8 hours before and after the valid expiry. There are basically two conditions in which an extension request is generally rejected. When a transporter applies for an e-waybill extension more than 8 hours before expiry, it would be considered a premature extension and gets rejected. Meanwhile, if a transporter applies for an e-waybill extension, it would be considered a delayed extension and usually gets rejected.
- Documentation and Details: Transporters are compelled to share the present location of goods, the remaining distance to be covered, vehicle number for road transport, and other e-waybill details. Make sure to submit the right details to avoid any later possible penalties.
- System Updates: Once the extension request has succeeded, a whole new e-waybill will be generated. The original or older e-way bill will become of no use for further movement of goods. As per compliance requirements, transporters also have to inform the consignor and consignee regarding the new e-waybill generated.
- Reason for Extension: To apply for e-waybill extension, transporters have to provide a valid and justifiable reason. The reason has to be unforeseen and unavoidable, like natural calamities, vehicle breakdowns, technical problems, heavy traffic, and legal or regulatory delays at checkpoints. It is one of the most essential compliance requirements for transporter-led extensions.
- Record Keeping: According to compliance requirements, transporters are required to keep the records of extended e-waybills for a specific period of time. All the extended e-waybills go for audit by the GST department or relevant tax authorities. Therefore, those safely kept bills will help you at the time of inspection or audit.
How do we determine the validity of an e-waybill?
|Other than Over Dimensional Cargo
|Up to 200 km
More than 200 km
additional 1 day for every 200 km
|Over Dimensional Cargo
|Up to 20 km
More than 20 km
additional 1 day for every 20 km
4. Documentation needed for transporter-initiated E-waybill extension
Transporters are required to share some essential documents to apply for the e-waybill extension process. We’ve mentioned all the required documentation below.
- Supporting Documents for Extension Reason: To apply for an e-waybill extension, the transporter has to provide a clear and concise written explanation with a valid reason for the extension. The transporter is also required to submit supportive documents for your cause. For instance, you have to share official news and reports for natural calamities. For vehicle breakdowns, you have to share the repair invoice.
- Original E-waybill Details: Every e-waybill has a unique bill number, and transporters are required to share that number. It will allow you to apply for an extension request.
- Current Location and Distance: The transporter is required to submit the exact location of the consignment. Also, make sure to share the distance left to reach the final destination. Your current location’s details will be automatically fetched with the required PIN code.
- Transporter ID: The Transporter has to share the identification number associated with the e-waybill. For instance, you can share the GSTIN (Goods and Services Tax Identification Number) or any other relevant identity details.
- Vehicle Details: The e-waybill extension process requires you to share the registration number of vehicles carrying your goods. It is especially needed for road transport. However, even for other transportation mediums, you have to share some relevant information.
- Consignor and Consignee Details: As a responsible transporter, you are required to share the documented details of the consignor and consignee over the official portal. It will help you to proceed with a successful e-waybill extension process.
5. Reporting obligations for extended E-waybills by transporters
Here we’ve mentioned all the necessary reporting obligations for extended e-waybills by transporters.
- Movement Updates: During the extension process, a transporter has to update the e-waybill system with all the major changes in the movement of goods. For instance, you have to update about any unplanned temporary halts, route change plans due to any reason, and changing vehicles carrying the consignment. In these cases, the transporter is required to provide the new information to the system.
- Final Arrival Report: When the goods successfully arrive at their final destination, meeting the extended validity, the transporter is obliged to immediately report it to the e-waybill system. This report works as a completion of the transit and closes the extended e-way bill cycle. Hence, it maintains a safe and secure transhipment.
- Reason for Extension: The transporter is required to clearly mention and explain the valid reason for the e-waybill extension. You have to provide a detailed and justifiable explanation with supported documentation to increase your chances of extending the e-waybill period.
- Updated Location and Remaining Distance: During the extension request, the transporter has to provide the current location of the consignment and the approximate distance remaining to reach the final destination. It is crucial information for the e-waybill authorities to approve your extension request.
- Discrepancies and Delays: If any unexpected circumstances deter the transporter from delivering the goods on time, they are obliged to report the e-waybill system about the issues with supportive documentation. Therefore, the transporter has to immediately report the issue to the GST department or relevant authorities. If you don’t provide these details, you have to bear certain penalties.
- System Updates: Transporters are responsible for ensuring an updated e-waybill with the latest rules and regulations. It is especially required in case of extension procedures and reporting requirements. In this way, you avoid any unintentional mistakes and non-compliance issues.
6. Challenges faced by transporters in E-waybill extension processes
While applying for an e-waybill extension, transporters have to face many challenges. Here are some of the common challenges faced by the transporters.
- Tackle Technical Glitch: Transporters face various challenges or difficulties when applying for e-waybill extensions. When you open the e-waybill portal to make extension requests, you would often face system downtime or crashes at crucial moments. It might lead the transporters to face penalties and delays.
- Maintain Accurate Documentation: Collecting supporting documents can sometimes be a waste of time, as it takes time to collect for any breakdown in a vehicle or road closure. Moreover, attaching these accurate and reliable documentation proofs is even more complicated.
- Compliance Uncertainties: The rules and regulations of the e-waybill extension process differ from state to state. It creates confusion and complexities for transporters to apply for e-waybill extensions and results in uncertain delays. Hence, it is a great challenge for the transporters to be aware of all the current rules and regulations of varied states across the country.
- Increased Operational Burden: Transporters have to report 8 hours after or before the original e-waybill expiry to apply for the e-waybill extension. It creates an unnecessary operational burden on the transporters. Moreover, they also have to report to the e-waybill system about the arrival of the consignment at the right time.
- Certain Penalties: If a transporter fails to fulfill reporting obligations or exceeds the new validity period, the relevant GST authorities impose financial penalties on them. Moreover, late deliveries or delays can also impact the consignor or consignee business. Hence, your business relations are also associated with timely deliveries and commitments.
- Face Approval Delays: Sometimes, the approval process takes a lot of time and causes unnecessary delays for the e-waybill extensions. It happens from the relevant tax authorities and disrupts the transportation process and schedule. Therefore, maintaining official delays causes different challenges for transporters.
- Keep Yourself Updated: Transporters are required to be updated regarding all the changes in e-waybill regulations. Some changes are also varied with different states. Therefore, they have to read all the latest information regarding e-waybill so that they can correctly apply for the extension request.
7. Exemption considerations for specific transporter-led scenarios
Certain Goods Transportation
Transporters get exemptions over certain goods based on their nature and intention to use. For instance, medical supplies, essential goods, and charitable materials have a distinct position in the market and our tax jurisdiction. The main idea behind providing exemptions over these certain goods’ transportation is to ease the movement of goods for societal and public welfare. The GST-relevant authorities provide special considerations to these goods while allowing e-waybills, too.
Small transporters, consisting of a turnover below a specified threshold, get the benefits of various exemptions. For instance, small transporters will have a simplified process, minimal paperwork, and certain additional exemptions. The idea is to help small-scale businesses by removing regulatory burdens from them. However, certain state jurisdictions have a unique definition of small transporter, which varies the rules and regulations for transporters. Therefore, it is required for the transporters to understand all the eligibility criteria, documentation process, and any other stipulations very well.
Transportation of Agricultural Produce
In every field, there are certain additional exemptions and special considerations for the agricultural sectors. Similarly, the transportation of agricultural products has certain exemptions related to reduced taxation, simplified documentation processes, and other favorable treatments. These efforts are taken by the GST tax authorities to promote the agricultural industry and embrace its importance in our economy. Transporters are required to know all the governing exemptions or varied states to successfully redeem for each exemption.
Transportation by Specific Mode
Transportation usually takes place via air, rail, road, or maritime, and each transportation mode has different characteristics. Moreover, each transportation has different exemptions and streamlined compliances. It is the transporter’s duty to apply for the specified exemptions based on your transportation mode. There are different exemptions and documentation processes for air and maritime transportation because of its international and time-sensitive nature. Rail transport also has some considerations for certain types of cargo. The specified transporter very well knows such exemptions.
Intrastate vs. Interstate Transportation
Intrastate transportation (within your required state) and interstate transportation (across different state borders) generally have varied regulations and exemptions. Here, tax authorities impose varied tax exemptions, considering the nature of transportation. In intrastate transportation, the exemptions are fulfilling the needs and requirements within your state boundaries. Meanwhile, under interstate transportation, the exemptions are provided based on fulfilling varied cross-border movements. Thus, a transporter has to be aware of accurate documentation for getting different exemptions based on interstate or intrastate transportation.
Transporters can deliver goods in critical situations or scenarios, which allows them to have certain relaxed compliance requirements. It includes natural calamities and humanitarian crises that require rapid movement of goods to handle the situations. In such cases, the GST regulatory authorities simplify the e-waybill procedure and provide various exemptions to the transporters. It can include essential goods like medical supplies or relief materials. Here, transporters don’t have to face various complex documentation requirements to make the goods arrive on time.
Transportation of Import or Export
There are various exemptions available for the international transport of goods. Typically, the transportation process involved in import and export has specific rules and regulations to streamline the cross-border exchange. You will have certain tax and documentation exemptions to make your trading process smoother. However, exemptions can vary with the different jurisdictions, as every country has different laws and regulations. The transporters are required to be well-updated with the rules and regulations of different countries.
8. Best practices for smooth transporter involvement in E-waybill extension
- Accurate Data Entry: Transporters should ensure that all the entered details in the E-waybill, such as transporter details, vehicle information, and consignment details, are accurate. Make sure to also recheck the information you provided. It will allow you to have a smoother e-waybill extension.
- Stay Informed About Regulations: Rules and regulations frequently get updated regarding the e-waybill and extensions. To have smoother transporter involvement, you are required to stay informed about the latest regulations. Therefore, you should regularly check out the updates from relevant tax authorities. In this way, you will be compliant with the ongoing latest requirements.
- Registration and Familiarization: In a supply chain, all the transporters should be registered on the e-waybill portal. They all should be familiar with the e-waybill generation and extension process. It will allow them to perform all the required activities smoothly. To excel in their knowledge and skills, a supply chain should provide training sessions and online resources.
- Real-time Tracking: Transporters should attach a GPS over the movement of goods, as it allows authorities to know the real-time conditions. Moreover, the consignor and consignee can track their consignment. It is one of the best methods to promote transparency in the transportation process.
- Know Possible Exemptions: Transporters should know various exemption scenarios applied in the specified transporter-led scenarios. Plus, you should also know the criteria and documentation required to apply for certain exemptions. It provides a smoother process for the e-waybill extension process.
- Provide Training to Staff: A transporter should train all of their staff members regarding the latest rules and regulations about the e-waybill extension process. When the transporters are well-trained, they handle extension requests more accurately and efficiently. Hence, it reduces the risk of compliance issues and provides you with a smoother transportation process for e-waybill extension.
- Collaborate with Authorities: Being a responsible transporter, you should set up positive communication and collaboration with tax authorities. It is one of the best practices for smooth transporter involvement in the E-waybill extension process. Having cooperative relations with the relevant authorities will allow you to effortlessly resolve any issues or queries related to extension requests.
- Pre-plan for Extension: In a transportation process, you should leave certain possibilities for e-waybill extension. It will keep you on the safer side and prepare you for any upcoming delays. Therefore, at any essential moment, you will be able to initiate the extension request in a timely manner and keep a smooth shipment.
9. Audit and verification of compliance with transporter-related extension rules
- Authority for Audit and Verification: The tax authorities, preferably GST (Goods and Services Tax) officers, take charge of conducting audits and verification. To ensure compliance, they can inspect the transporter’s premises, examine records, and ask questions to the consignor or consignee.
- Verification Method: The audit and verification process generally happens in three possible ways: physical inspection, data analysis, and information sharing. In the physical inspection, the GST officers review documents and goods at the transit points. In data analysis, the authoritative professionals analyze e-waybill data to figure out the discrepancies and patterns denoting any non-compliance.
- Approval and Communication Records: Authorities generally review the records of approval and rejections of e-waybill extension requests made by transporters. In this review process, authorities basically verify communication between the transporter and tax authorities to ensure that the extension process is made under the official procedure.
- Audit and Verification Process: In the audit, officers primarily confirm the accuracy of your e-waybill. They review transporter details, vehicle information, and other consignment details. The transporters can also be checked by a GST officer during transit, including required e-waybill, challan, invoices, and more.
- Consequences of Non-Compliance: If the transporter violates any rule during the e-waybill extension process, they have to bear penalties under GST laws. The officials might also detain the goods until the fines are paid. Moreover, if you are found to be making continuous mistakes, they can cancel your GST registration as well.
10. Legal consequences of transporter misconduct in extension processes
There are various legal consequences for a transporter’s misconduct in the extension process.
Penalties and Fines Under GST Laws
There are three major GST laws as per the specified sections mentioned below.
- CGST Act Under Section 122: Transporter or consignor/consignee can be imposed with a fine of Rs.100 on each document if they fail to generate/carry an e-waybill, exceed your validity period, or provide any inaccurate information.
- CGST Act Under Section 123: Transporter or consignor/consignee can be charged a penalty of up to 100% of the tax liability if you transit the shipment without any valid e-waybill or are found to make any sort of e-waybill manipulations.
- CGST Act Under Section 124: You will additionally be charged with a penalty of Rs. 50,000 if you repeatedly offend or obstruct tax officials during the verification process.
GST authorities and officials can detain goods from transporters for any discrepancies and improper documentation in e-waybills under Section 130 of the CGST Act. The detained goods will be resolved only after resolving the discrepancies and paying applicable penalties.
Seizure of Vehicle
Under Section 132 of the CGST Act, tax officials can seize the transporter’s vehicle if they transit shipment without required documents or smuggling something.
Transporters can be criminally prosecuted under the CGST Act for deliberate tax evasion and large amounts of fraud. In such cases, you might face imprisonment or heavy penalties.
Parties, including the consignor, consignee, or stakeholder, can file a civil lawsuit against the transporter’s misconduct, leading to financial loss, disruption, or any other harm.
GST officers can revoke or suspend the transporter’s license if they find any serious misconduct. Hence, transporters won’t be able to operate the transhipment legally.
To Wrap Up!
Transporters can efficiently apply for the e-waybill extension process just by giving their ID to the consignor or consignee. Related to transporter-led extension, there are various obligations and processes mentioned in this article above. We hope this blog helps you know all the essentials about the e-waybill extension process led by transporters.
Frequently Asked Questions (FAQs)
Q1. How do I extend my e-waybill validity by transporter?
Listed below is a step-by-step process to extend your e-waybill validity by transporter.
- First, you have to visit the e-waybill page.
- You should open EWB validity and select “Expires Today.”
- It will allow you to have all the e-waybills expiring on that day.
- Next, you have to select the e-waybill and click on “More Actions.”
- Select “Extend Validity” and confirm the extension process.
- Fill out all the required details and submit your request.
- As soon as the GST regulatory authorities approve your requests, it will be visible on the screen.
Q2. What is the mandatory rule for e-waybills?
E-waybill is an official document used to track transiting goods under Goods and Services Tax. A GST-registered taxpayer transiting goods exceeding the value of Rs. 50,000 has to generate an e-waybill for legal shipment. Therefore, any consignment exceeding this required value has to generate an e-waybill.
Q3. What is AIS 140 certification?
The AIS 140, also known as Automotive Industry Standard 140, is a typical standard rule created and published by the ARAI (Automotive Research Association of India). It was created within the orders of the AISC (Automotive Industry Standards Committee) of the Ministry of Road Transport and Highways.
Q4. Which transport document number is considered for the e-waybill?
Goods receipt number, airway bill number, railway receipt number, or bill of lading number issued to your transporter will be considered as an official transport document. It will allow you to generate an e-waybill and support your extension request. This works as proof of your transhipment.
Q5. How can I assign my e-waybill to my transporter?
In the e-waybill generation process, there is a provision to enter the transporter ID in the transportation details section, which allows you to assign your e-waybill to your transporter. You have to ask your transporter for their 15-digit transporter ID, which will be required to fill in to assign your e-waybill.
Q6. What happens if goods aren’t transported even after an e-waybill is generated by the client?
If your e-waybill is generated, but your goods are not transported, you may cancel it within 24 hours. However, in case it doesn’t get canceled within 24 hours of its generation, then GST authorities might not allow it to be canceled by the consignor. Still, you’ll have the option of extending the e-waybill.
Q7. What are the exemptions of customs duty?
There are exemptions over certain custom goods mentioned below.
- Secret goods imported by the government.
- Import of military hardware and software for defense needs / Research and Development Units under DRDO are free from customs duties.
- Equipping forces imported by the Central Policy Organization are allowed free of duty.
Q8. Who takes the responsibility for compliance verification with the requirements of the ISM code?
The administration takes responsibility for compliance certification, requiring the ISM code. They issue the DOC (Documents of Compliance) to companies and SMC (Safety Management System) to ships.
Q9. What are the roles and responsibilities of e-waybill?
Every good requires an e-waybill for the legal transportation process, except certain exempted goods under notifications or rules released by GST officials. In most cases, an e-waybill is only required for goods exceeding the value of Rs. 50,000. However, the movement of job-work purposes or handicraft goods can require an e-waybill under specified conditions, no matter if its value is even less than Rs. 50,000.
Q10. What is considered as misconduct under CCS conduct rules?
In cases like criminal theft and fraud conducted by an employee, the employer has full rights to forward legal proceedings against the employee with the support of the Police system. It can lead the employees to be penalized or fined.