What is the validity period of an e-way bill?

The validity period of an e-way bill depends on the distance the goods are being transported. It is regulated under the GST Act and CGST Rules, which provide specific time limits for the movement of goods covered under the e-way bill system. The validity period is determined based on the distance that goods are being transported.

Here’s a breakdown of the validity period based on the distance:

1. For Distance Up to 100 km:

• If the transportation of goods is within a 100 km radius, the e-way bill is valid for 1 day from the time of generation.

2. For Distance Beyond 100 km:

• For every additional 100 km or part thereof, the validity of the e-way bill is extended by 1 more day.
• For example:
  • If goods are being transported over 101 to 200 km, the e-way bill will be valid for 2 days.
  • If goods are being transported over 201 to 300 km, the e-way bill will be valid for 3 days, and so on.

3. Goods Not Moved Within the Validity Period:

• If the goods are not moved within the validity period of the e-way bill, the e-way bill becomes invalid and a new e-way bill must be generated to continue the transportation.

4. Special Provisions for Transportation:

• If the goods are being moved under specific circumstances like job work, return of goods, or exports, the validity period may have different conditions based on the GST rules.
• For transporter delays or in-transit delays, extensions may be possible under exceptional circumstances.

Provision & Acts in the Indian Constitution Related to E-Way Bill

The Indian Constitution does not directly provide provisions for the e-way bill, but the e-way bill system is part of the framework created by the 101st Constitutional Amendment Act, 2016, which introduced GST in India.

The relevant provisions related to e-way bills are included in the Central Goods and Services Tax (CGST) Act, 2017, Integrated Goods and Services Tax (IGST) Act, 2017, and the GST Rules.

Key provisions include:

1. 101st Constitutional Amendment Act, 2016:
   • This amendment introduced GST in India, empowering both the Central Government and State Governments to make laws related to the goods and services tax system, including matters relating to e-way bills.
2. Central Goods and Services Tax (CGST) Act, 2017:
   • Section 68 of the CGST Act requires an e-way bill to be generated for the transportation of goods worth more than Rs. 50,000.
   • Rule 138 of the CGST Rules prescribes the provisions for generating the e-way bill and specifies the validity period depending on the distance of transportation.
3. Integrated Goods and Services Tax (IGST) Act, 2017:
   • This act deals with interstate transportation of goods and includes provisions regarding e-way bills for interstate movement.
4. GST E-Way Bill Rules (CGST Rules):
   • Rule 138 and Rule 138A of the CGST Rules govern the e-way bill system and define the conditions, process, and validity of the e-way bill.
   • The rules specify the distance-based validity of e-way bills and the need to regenerate the e-way bill if the goods are not moved within the prescribed time.

Landmark Cases Related to E-Way Bills and Their Validity

There have been several landmark cases related to the validity of the e-way bill, particularly focusing on the detention of goods for non-compliance or invalid e-way bills. Some of these cases clarify penalties, e-way bill validity, and requirements under the GST regime. Here are a few significant cases:

1. M/s. K. G. K. Steel & Co. v. Union of India (2019):
   • This case dealt with the detention of goods because the goods were being transported without a valid e-way bill. The petitioner’s argument was that the e-way bill had expired.
   • The Court upheld the validity of the e-way bill system and stressed that the e-way bill should be valid throughout the movement of goods, and if it expired, the goods would be subject to penalties.
2. M/s. Yash Impex v. Union of India (2019):
   • This case focused on the e-way bill validity issue during interstate movement of goods. The e-way bill was found to have expired, leading to seizure of goods.
   • The Court ruled that the e-way bill’s validity is crucial for the movement of goods, and the failure to extend the e-way bill validity when required can lead to legal consequences. It reinforced the rule that the e-way bill must be valid during the entire journey of the goods.
3. M/s. S. M. Exports v. State of Uttar Pradesh (2020):
   • The case involved the detention of goods due to expired e-way bills. The Court ruled that the transportation of goods requires a valid e-way bill and that the e-way bill validity must be checked regularly during transportation.
   • It emphasized that strict compliance with the validity rules of the e-way bill is necessary for GST enforcement.
4. M/s. J.K. Chemicals v. GST Authorities (2018):
   • This case dealt with the e-way bill validity during the transfer of goods for a business. The e-way bill had expired while the goods were still in transit.
   • The Court ruled that e-way bill validity must be ensured for the entire duration of transportation. If the e-way bill expires, the goods may be detained and the party must generate a new e-way bill.

Conclusion

The validity period of an e-way bill depends on the distance the goods are being transported. It is generally 1 day for goods transported within 100 km and extends by 1 day for every 100 km or part thereof beyond that. The CGST Act, 2017, and CGST Rules, 2017, govern these provisions, and Rule 138 of the CGST Rules specifies the validity and the process for generating an e-way bill.

Landmark cases, such as M/s. K. G. K. Steel & Co. v. Union of India (2019) and M/s. Yash Impex v. Union of India (2019), have reinforced the importance of ensuring that the e-way bill remains valid for the duration of the transportation of goods and the legal consequences of non-compliance.