TAXATION

GST
CHAPTER-12
SOLUTION
Marks 35

Ans-1

As per Rule 138(5A) of the CGST rules, 2017, the consignor or the recipient, who has
furnished the information in Part A of FORM GST EWB-01, or the transporter, may assign the
e-way bill number to another registered or enrolled transporter for updating the
information in Part B of FORM GST EWB-01 for further movement of the consignment.

However, after the details of the conveyance have been updated by the transporter in Part
B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished
the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill
number to another transporter.

In this case Mr. Shah (consignor) is required to move goods from Ahmedabad (Gujarat) to
Nadiad (Gujarat). He appoints Transporter Mehta for movement of his goods. Transporter
Mehta moves the goods from Ahmedabad (Gujarat) to Kheda (Gujarat). For completing the
movement of goods i.e., from Kheda (Gujarat) to Nadiad (Gujarat), Transporter Mehta now
hands over the goods to Transporter Parikh. Thereafter, the goods are moved to the
destination i.e. from Kheda (Gujarat) to Nadiad (Gujarat) by Transporter Parikh. In such a
scenario, only one e-way bill would be required. Part A can be filled by the consignor and
then the eway bill will be assigned by the consignor to Transporter Mehta. Transporter
Mehta will fill the vehicle details, etc. in Part B and will move the goods from Ahmedabad
(Gujarat) to Kheda (Gujarat). On reaching Kheda (Gujarat). Transporter Mehta will assign the
said e-way bill to the Transporter Parikh. Thereafter, Transporter Parikh will be able to
update the details of Part B. Transporter Parikh will fill the details of his vehicle and move
the goods from Kheda (Gujarat) to Nadiad (Gujarat).

(6 Marks)

GMTESTSERIES.COM®
Ans-2

Situations where e-way bill is not required to be generated Not withstanding anything
explained above, no e-way bill is required to be generated in the following cases:

(a) Where the goods being transported are the ones given below:

S. No. Description of Goods

1. Liquefied petroleum gas for supply to household and non-domestic exempted

category (NDEC) customers

2. Kerosene oil sold under PDS

3. Postal baggage transported by Department of Posts

4. Natural or cultured pearls and precious or semi-precious stones; precious metals

and metals clad with precious metal (Chapter 71)

5. Jewellery, goldsmiths' and silversmiths' wares and other articles (Chapter 71)
[excepting imitation Jewellery (7117)]

6. Currency

7. Used personal and household effects

8. Coral, unworked (0508) and worked coral (9601)]

(b) Where the goods are being transported by a non-motorised conveyance

(c) Where the goods are being transported from the customs port, airport, air cargo
complex and land customs station to an inland container depot or a container freight station
for clearance by Customs

GMTESTSERIES.COM®
(d) In respect of movement of goods within such areas as are notified under of rule
138(14)(d) of the State or Union territory GST Rules in that particular State or Union
territory

(6 Marks)

Ans-3

Editing E-Way Bill:

In the context of Mr. Y's situation, the ability to edit an e-way bill after its generation is
subject to the provisions outlined in the Goods and Services Tax (GST) regulations.
According to the current provisions, once an e-way bill is generated, it cannot be directly
edited or modified. Any errors or discrepancies found in the e-way bill would typically
require cancellation of the existing e-way bill and the generation of a new one with the
correct information.

Concept of Consignment Value:

Now, delving into the concept of "consignment value," it is crucial to understand how the
value is determined and what components it includes. The consignment value of goods is
calculated based on the following factors:

1) Value Determined in Accordance with Section 15:

The value of the goods is determined in accordance with the provisions of section 15 of
the CGST Act, which pertains to the valuation of taxable goods and services.
2) Declared Value in the Document:
The consignment value includes the value declared in the invoice, bill of supply, or
delivery challan issued in respect of the said consignment.
3) Inclusion of Taxes:
It also incorporates the Central tax, State or Union territory tax, integrated tax, and cess
charged, if any, in the document.
4) Exclusion of Exempt Supply Value:

GMTESTSERIES.COM®
 The consignment value excludes the value of exempt supply of goods in cases where
the invoice is issued for both exempt and taxable supply of goods.

Conclusion:

In conclusion, Mr. Y should be informed that the current provisions do not allow for the
direct editing of an e-way bill after its generation. Therefore, in the case of an error, he
should cancel the existing e-way bill and generate a new one with the correct details.
Understanding the components of the consignment value is essential for accurate e-way bill
generation and compliance with GST regulations.

(6 Marks)

Ans-4

(i) Consolidated e-way bill in case of road transport

Consolidated e-way bill (EWB) is a single document containing the details of multiple e-way
bills (even with different validity periods) in respect of multiple consignments of various
consignors and consignees being transported in a single vehicle/ conveyance generated by
the transporter to carry a single document instead of carrying separate documents for each
consignment in the conveyance.

(ii) Acceptance/rejection of e-way bill

The details of the e-way bill generated shall be made available to supplier (if registered),
where the information in Part A of e-way bill is furnished by recipient/transporter, or
recipient (if registered), where the information in Part A of e-way bill is furnished by
supplier/transporter, who shall communicate his acceptance or rejection of the
consignment covered by the e -way bill.

If such person does not communicate the acceptance/rejection within 72 hours from the
time of the details being made available to him on the common portal or the time of
delivery of goods, whichever is earlier, it will be deemed that he has accepted the details.

(6 Marks)
GMTESTSERIES.COM®
Ans-5

Where a person paying tax under composition scheme has not furnished the statement for
payment of selfassessed tax for 2 consecutive quarters, e-way bill shall not be allowed to be
generated in respect of any outward movement of goods by such person.

However, this restriction does not apply to generation of e-way bill in respect of inward
movement of goods by the defaulter.

Hence, in the given case, M/s. Bob & Sons is allowed to generate e-way bill with respect to
supply to be made to M/s. Lalit Kirana Stores since M/s. Bob & Sons, who is making the
outward movement of goods, is a regular return filer.

(6 Marks)

Ans-6 MCQ Answer

1. a) Yes, because the total consignment value (including GST) exceeds ₹50,000.

Reason:

As per e-way bill rules under GST, an e-way bill is mandatory if the consignment value
exceeds ₹50,000. The consignment value includes:

1. Value of taxable goods: ₹47,500.

2. GST on taxable goods: ₹2,850 (47,500 × 6%).
3. Exempt goods: Excluded from the calculation.

Thus, the consignment value is ₹50,350, which exceeds ₹50,000, making e-way bill
generation mandatory.

2. b) Update the existing e-way bill at each stage by changing the mode of transport and
transport document details.

GMTESTSERIES.COM®
Reason:

As per e-way bill rules under GST, when goods are transported using multiple modes of
transport (e.g., road, ship, air), the following steps must be followed:

1. Generate an e-way bill for the first leg of the journey, entering the initial mode of
transport (e.g., road) and vehicle details.
2. Update the e-way bill with the new mode of transport (e.g., ship) and transport
document number when the goods are transferred to the next stage (e.g., shipyard).
3. Continue updating the e-way bill for subsequent stages (e.g., air and road) using the
"Update Vehicle Number" or similar options on the e-way bill portal.

This ensures compliance with GST requirements and provides real-time tracking of the
consignment throughout its journey.

3. c) Only Mr. A can generate an e-way bill; Mr. B is restricted from e-way bill generation.

Reason:

E-way bill generation is subject to the filing of GSTR-1. In the case of Mr. A, who has not filed
Form GSTR-1 for the last 2 months, the system restricts the generation of e-way bills for
outward movement of goods. However, since Mr. B is a regular return filer, he can generate
an e-way bill for the goods he intends to supply to Mr. A. On the other hand, Mr. A is
restricted from generating an e-way bill for his outward supply to Mr. H due to non-
compliance with GSTR-1 filing requirements.

4. b) The e-way bill will be valid for 3 days.

Reason:

As per the Goods and Services Tax (GST) regulations, the validity period of an e-way bill for
the transportation of goods by road is determined based on the distance to be covered. For

GMTESTSERIES.COM®
a distance of 500 km or more, the e-way bill is valid for 3 days. This is to ensure that the e-
way bill corresponds to the reasonable time required for the transportation of goods from
the source to the destination. Therefore, in the given scenario of Mr. X transporting goods
from his warehouse to his depot located 500 km away, the e-way bill generated will be valid
for 3 days.

5. a)Road → Ship → Air → Road

Reason:

The correct procedure for updating the e-way bill during multi-modal transportation in the
given scenario is as follows:

Road (First Stage): Babbal Associates initiates the e-way bill for the first stage of movement
by road, from its place to the shipyard. The vehicle number is entered at this stage.

Ship: After submitting the goods to the shipyard, Babbal Associates updates the mode of
transportation as ship and provides the transport document number on the e-way bill
system.

Air: Upon reaching Mumbai, the movement is updated as road from the shipyard to the
airport, including the vehicle number. Subsequently, using the 'update vehicle number'
option on the portal, the Airway Bill number is updated.

Road (Final Stage): After reaching Delhi, Babbal Associates updates the movement through
road with the vehicle number.

Therefore, the correct sequence is Road → Ship → Air → Road.

(5x1=5 Marks)

GMTESTSERIES.COM®