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2020-02-10 19:40:23GST CenterEnglishThis article talks about what is E-Way Bill and provisions with regards to its modification, rejection and E-Way Bill cancellation. Bill Cancellation: How To Modify, Reject & Cancel E-Way Bill?

E-Way Bill Cancellation: How To Modify, Reject & Cancel E-Way Bill?

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E-Way Bill (EWB) under GST was introduced to make sure that the goods being transported (both inter-state and intra-state) comply with the GST law. Furthermore, it would facilitate monitoring of the movement of goods and help control tax evasion.

The coming of the GST e-way bill system in India resulted in a transition from the government controlled model to a system that promoted self reporting by the taxpayers.

E-Way Bill system helps to make sure that the information that goes to the GST portal before the movement of goods is authentic and relevant.

Furthermore, it has also lead to doing away with the checkposts and different types of entry tax so as to facilitate smooth movement of goods across states. Also the common electronic format adopted for the E-Way Bill has helped businesses to save time on one hand and lead to an increase in tax revenues for the government on the other.

Rule 138 of the CGST Rules, 2017 lays down the mechanism for e-way bill. It provides that the information must be uploaded on the GST Portal before the movement of goods takes place.

Furthermore, it also requires the taxpayers to specify whether such movement of goods is in respect of a supply or reasons other than supply. This article talks about what is E-Way Bill and provisions with regards to its modification, rejection and E-Way Bill cancellation.

What is E-Way Bill?

E-Way Bill is an electronic document that is generated on the GST Portal and is a proof of movement of goods. Every registered person causing movement of goods, as a part of supply or for any reason other than supply, of value more than Rs 50,000 is required to furnish E-Way Bill.

This document is in Form GST EWB-01 and it comprises of two components, that is, Part A and Part B.

Part A of the E-Way consists of the following details:

  • GSTIN of the recipient
  • Place of delivery (Pincode)
  • Invoice or Challan Number and Date
  • Value of Goods
  • HSN Code
  • Transport document number (This could include goods receipt number, railway receipt number, airway bill number or bill of lading number)
  • Reasons for transportation

On the other hand, Part B of the E-Way Bill consists of the transporter’s details such as the vehicle number.

Further, there are various options available to the user to operate on the E-Way Bill. These include:

  • New E-Way Bill Generation
  • Generating E-Way Bill in Bulk
  • Updating Part-B/Vehicle
  • Update Vehicle Bulk
  • Changing to Multiple Vehicle
  • Extending Validity
  • Updating EWB Transporter
  • Updating EWB Transporter Bulk
  • Cancelling E-Way Bill
  • Print EWB

E-Way Bill Cancellation

E-way Bill must be mandatorily generated whenever transportation of goods takes place. However, there are certain exemptions to this rule. For instance, movement of exempted goods need not require the generation of an E-Way Bill.

Likewise, there are certain cases where E-Way Bill is generated even if the value of goods being transported is less than Rs 50,000. These include handicraft goods or goods for job work purposes under special circumstances.

Now, proper care must be taken while generating the E-Way Bill by the taxpayers and the transporters. This is because in the wake of uploading information quickly, both the taxpayers and the transporters may end up committing mistakes.

For instance, the mistakes typically committed by them include:

  • Wrongly entering the total tax values such as SGST, CGST, IGST and CESS
  • Incorrect entry of the GSTIN of the other party
  • Wrong entry of PIN Codes
  • Incorrect entry of HSN Codes

If a taxpayer commits such mistakes, the GST Law does not allow for deleting or editing the E-Way Bill so generated. Therefore, the only option available with the taxpayer who has generated incorrect E-Way Bill is the cancellation of such a Bill and generating a new one with correct information.

Therefore, as a consequence of such mistakes, the E-Way Bill may be cancelled either by the taxpayer himself or be rejected by the other party.

Reasons For E-Way Bill Cancellation

A registered person who generates E-Way Bill may cancel the E-Way Bill electronically if:

  • No transportation of goods takes place
  • The goods are not transported as per the details mentioned in the E-Way Bill

Thus, in the above situations, the E-Way Bill can be cancelled electronically on the common portal. This can be done directly or via a Facilitation Centre notified by the Commissioner.

E-way Bill Cancellation Time

The E-Way Bill once generated cannot be deleted. However, it can be cancelled by the person generating the same within 24 hours of its generation.

Further, if a particular E-way Bill has been verified by a proper officer, then such an E-Way Bill cannot be cancelled.

Also, the Unique Number generated under E-Way Bill is valid for a period of 15 days for updating details in Part B of Forma GST EWB-01.

Procedure for E-Way Bill Cancellation

1. Cancel EWB

It must be noted that before taking the cancellation, the generator must have the E-Way Bill number ready for the Bill he intends to cancel. ‘Cancel E-Way Bill’ screen will appear when a user selects the option ‘Cancel EWB’ under ‘E-Way Bill For Citizens’.

2. Get OTP


On the ‘Cancel EWB’ screen, the user would need to enter details such as mobile number and the 12-digit E-Way Bill Number. After filling these details, he must click the ‘Get OTP’ button.

Upon doing so, he would get the OTP on his registered mobile number. He needs to enter this OTP in the OTP field. After filling the OTP, he must click ‘Verify OTP’.

3. Provide Reason For Cancellation


Once the OTP is verified, the E-Way Bill that the user intends to cancel appears on the screen. He must then provide a valid reason for cancellation of the E-Way Bill.

In this way the user can cancel the incorrect E-Way Bill. It must be noted that once the E-Way Bill is cancelled, it is illegal to use the same.


How to Reject E-Way Bill?

As mentioned above, the transaction details must be provided by the registered person before the commencement of movement of goods and the generation of the E-Way Bill.

Once the information is furnished, E-Way Bill Number is provided to the supplier, recipient and transporter on the common portal. Next, the person who causes movement, that is, the one responsible for the conveyance is required to carry:

  • Invoice, Bill or Supply or Delivery Challan as per the case
  • Copy of the E-Way Bill or the E-Way Bill number

Now, the details of the E-way Bill so generated will be provided to the recipient on the common portal in case he is registered. On receiving such information, he is required to accept or reject the goods that are covered by the E-Way Bill and communicate the same to the supplier.

If the recipient fails to communicate his acceptance or rejection of the goods covered by the E-Way Bill within 72 hours from the time of the generation of the E-Way Bill, it is considered that he has accepted such details.

Process For Rejecting The E-Way Bill

1. Reject E-Way Bill Generated By Others

It must be noted that the user must have the E-Way Bill number ready in respect of the Bill he intends to reject. The user must select ‘Reject’ Option from the main menu. Upon doing so, ‘Reject E-Way Generated By Others’ screen will be displayed.

2. Choose the Relevant Date


The user then selects a date on which the E-Way Bill, which he intends to reject, was generated and select the ‘Submit’ button thereafter. Upon doing so, the system will show the E-Way Bills that were generated on the particular data selected by the user.

3. Select the E-Way Bill and Click Reject


Once the screen displays the E-Way Bills generated on the date selected by the user, the user must select the specific EWB he intends to reject. This is done by checking the box against the E-Way Bill that he wants to reject.

On checking the same, he needs to click the ‘Reject’ button in order to reject the concerned E-Way Bill.

How to Modify E-Way Bill?

It must be noted that a specific E-Way Bill stands invalid for the movement of goods if it does not have the vehicle number on it. The E-Way Bill system provides the facility of updating the vehicle number to the users.

The vehicle number can be updated in the following two circumstances:

  • If it was not entered while generating the E-Way Bill
  • The vehicle to be used for the movement of goods has been changed due to several reasons. These could be transit movement, vehicle breakdown etc.

Further, the option to update the vehicle number can be used multiple times by the user. Also, the E-Way Bill must reflect the latest vehicle number and such a number must match with the conveyance carrying such an E-Way Bill in case it is verified by the Department.

1. Update Part-B/Vehicle (Updating Of Vehicle No., Form I)

E-Way Bill Cancellation

To update the vehicle number, the user must choose ‘Update Part-B/Vehicle’ sub-category under the E-Way Bill option on the main menu. Once it is done, the ‘Update Vehicle NUmber’ screen will appear.

Now, as displayed on the screen, the user needs to select one of the two options provided against ‘Show E-Way Bill By’ field. These include:

  • E-way Bill Number
  • Generated By Me (Date)

On selecting one of the two options, the system would display a list of relevant E-Way Bills satisfying the parameter so selected. The user then needs to select the E-Way Bill for which the Vehicle Number needs to be updated.

2. Vehicle Updation Form (Updating Of Vehicle No., Form II)


On selecting the relevant E-Way Bill, Form II for updating the Vehicle Number would appear on the screen. It must be noted that the user must have the E-Way Bill for which he intends to update the Vehicle Number and the new Vehicle Number before updating the Vehicle Number.

In Form II, the user needs to fill the following fields:

  • Mode of Transport: User needs to select between road, rail, air and ship under the mode of transport
  • Vehicle Type: The user here needs to choose between the two options: Regular and Over Dimensional Cargo.
  • Vehicle Number: User enters the Vehicle Number here through which the transportation needs to be done.
  • Place of Change: Here, the user mentions the ‘From Place’ and ‘From State’ from where the transportation would occur.
  • Reason: The user needs to provide the reason for the vehicle change. He can choose from the list of reasons given in the drop down list. Further, he also needs to specify appropriate remarks that supports the selected reason.
  • Transporter Doc No. and Date: If the transportation is undertaken via rail, air or ship, the user must enter transporter document number in place of the vehicle number.
  • Submit: On filling the details in Form II, the request for Vehicle Number updation is submitted.

3. Vehicle Number Updation

On submitting the request, the system will validate the details entered by the user and display a message in case of any error. If however, the details uploaded are correct, the Vehicle number gets updated instantly. And also gets aligned with the concerned E-Way Bill.

The system also provides the facility of updating the Vehicle details in bulk for multiple E-Way Bills. This is done by uploading the JSON file on the E-Way Bill Portal.

Update E-Way Bill

The transporter/seller who was initially designated as the transporter can change the transporter ID resulting in the replacement of the initial transporter with the new transporter.

In case, the initial transporter earmarks a new transporter by making changes to the transporter ID, then the seller cannot make any changes himself.

Process To Update The EWB Transporter Details

1. Update EWB Transporter (Form I)


For updating the transporter details, the user must select ‘Update EWB Transporter’ sub-category under the E-Way Bill option in the main menu. On doing so, ‘Update Transporter Details of E-Way Bill’ screen will appear.

The user then needs to enter EWB Number in enter ‘E-Way Bill Number’ field for which the transporter details need to be updated.

After filling the number in the field, he must click ‘Go’ button.

2. EWB Transporter (Form II)


The system will display Form II on the screen for the user. This contains multiple fields containing information about the transaction. Towards the end of the Form is a field for the Transporter ID.

The user can then make changes in the Transporter ID and click ‘Submit’. In such a way, the Transporter Details can be updated by the transporter.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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