How to generate an E-way Bill if the goods are rejected by the recipient?

The GST Network plans to activate an automated system from 1st December 2020 that will block the generation of E-way Bills for non-filers of monthly GST return form GSTR-3B, irrespective of turnover limits.

In the GST regime, an E-Way bill (Electronic Way Bill) needs to be generated on the GST portal – ewaybillgst.gov.in when goods of Rs. 50,000 or more are being transported from one place to another. If a person transports goods of Rs. 50,000 or more in value without generating an E-Way Bill, this attracts penalties and confiscation. Every time a new E-Way bill is generated, a unique E-Way Bill Number (EBN) is allotted. It is made available to all the people involved i.e. to the supplier, recipient, and the transporter.

How do E-way Bill Rules Impact The Unregistered Persons

As stated, an E-way bill is generated when goods of value 50,000 or more are transported in relation to:

A ‘Supply’ activity
Sales Return
Inward Supply by an unregistered person.

Note: E-way Bill has to be generated in case of inter-state transfer even if the goods are less than Rs. 50,000 of value.

How to generate an E-Way Bill?An E-way Bill can be generated in multiple ways:

Use the official GST Portal – http://ewaybill.nic.in
Use the SMS based facility
Use the services of IRIS Topaz

Topaz is a Cloud Based E-Way Bill Management Platform from the house of IRIS GST

It helps you manage the entire life cycle of your EWB, right from the generation to updates, rejection and cancellation. Topaz is designed to cater to the needs of suppliers, consignors and transporters alike, by enabling creation of business hierarchy and role/EWB assignment to mimic your sales and dispatch processes. With Topaz, you can plan and manage your E-Way bills in an easy and automated way, on the go!

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How to generate an E-Way Bill when the goods are rejected by the recipient:

CASE I: The goods are in the warehouse of the transporter and are rejected by the recipient event before receiving them. Here, the goods will have to be transported back to the supplier’s godown.

Scenario A): If the transporter is generating the e-way bill in case of sale resturn from his location till the supplier’s location then he can mention URP as GSTIN of the supplier and the dispatch address will be his own godown location.

Here is the screenshot for better understanding:

Scenario B): If the supplier is generating the e-way bill in case of ‘sales resturn’ from transporter’s location to his own location, then he can mention either transporter’s GSTIN or URP in the supplier GSTIN column and the ‘dispatch address’ will be of transporter’s location.

Here is the screenshot for better understanding:

Transporter Location Transaction Details

NOTE: As an inward E-way bill, the recipient’s GSTIN and address will always be of the supplier in all the cases.

Case II: The goods have reached the recipient and then they get rejected due to say some damage or ‘faulty products received’ or some ‘other consignment is received’ mistakenly. In this case, the goods again have to be transported back to the supplier.

Now, if the supplier is generating the e-way bill from the recipient’s location to his own location so in this case, need to mention Supplier GSTIN and address of the buyer.

Here is the screenshot for better understanding:

In both these cases (I and II), a delivery challan has to be issued. The delivery challan is issued for sales return and it does not get reflected in GSTR 1.

A delivery challan is a document which is issued for transporting goods from one place to another when the traction is not considered as a ‘supply’.

NOTE: As an inward E-way bill, the recipient’s GSTIN and address will always be of the supplier in all the cases.