Navigating E-Way Bill Validity and Goods Movement Post-Lockdown

Government Announcement on E-Way Bill Validity and Post-Lockdown Situations

The government has extended the validity period for E-way bills generated on or before March 24, 2020, which were set to expire between March 20, 2020, and April 15, 2020. Such E-way bills will now be considered valid until May 31, 2020.

Following the resumption of industrial operations on June 1, 2020, businesses have reopened and are either receiving deliveries of goods ordered before the lockdown or returning items to suppliers for various reasons. Below, we outline several common situations that businesses may encounter regarding the acceptance of deliveries or return of goods, along with the necessary steps to avoid potential penalties from the GST department during these movements.

Situation 1: Goods Stuck at Transport Hub, Moving to Buyer’s Premises

In this scenario, a seller has issued an invoice and generated an E-way bill, but the goods remain at the transport hub. To proceed with delivery to the buyer's location, follow these steps:

1. Notify the Nodal Officer: Inform them of the current situation.
2. Generate a New Invoice: Create a new invoice referencing the dispatch from the transporter's location.
3. Issue a Fresh E-way Bill: Generate a new E-way bill based on the new invoice and instruct the transporter to deliver the goods to the buyer.

Situation 2: Goods Stuck at Transport Hub, Moving to Seller’s Premises

If the goods are at the transport hub without the possibility of forwarding to the buyer, use the following steps to return the items to the seller’s premises:

1. Provide an Undertaking: Issue a duplicate undertaking detailing that due to the lockdown, the goods should not be moved further, and request their return. Include full details of the original tax invoice and E-way bill.
2. Create a Delivery Challan: Generate a delivery challan from the transporter's location back to the supplier's premises.
3. Generate a Fresh E-way Bill: Create a new E-way bill against this delivery note and instruct the transporter to return the goods.

Situation 3: Goods Stuck at Borders, Moving to Seller’s Premises

When goods are stranded at borders during transit, follow these steps:

1. Issue an Undertaking: Provide a triplicate undertaking to both the transporter and the original recipient, stating that the goods need to return to the seller’s premises due to lockdown conditions.
2. Generate a Delivery Challan: Create a delivery challan from the border location back to the seller’s premises.
3. Generate a Fresh E-way Bill: Develop a new E-way bill linked to this delivery challan. The transporter must carry the undertaking, original tax invoice, and E-way bill alongside the seller-issued delivery challan.

Situation 4: Goods at Recipient’s Location, Unable to Unload, Returning to Seller’s Premises

When goods have reached the buyer but cannot be unloaded due to lockdown restrictions, take these steps:

1. Obtain a Declaration from the Buyer: Procure a written statement from the buyer confirming their inability to unload the goods.
2. Issue a Credit Note: Generate a credit note against the original tax invoice for the goods dispatched.
3. Generate a Fresh E-way Bill: Create a new E-way bill based on the credit note and arrange for the transporter to return the goods to the seller’s location.

Conclusion

These steps are crucial for businesses navigating the challenges of returning or receiving goods post-lockdown. By adhering to these protocols, sellers can prevent penalties imposed by the GST department during the movement of goods.