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CMA Intermediate · Direct and Indirect Taxation · Tax Invoice - Electronic Way Bill

Sharma Traders, a registered person in Jaipur, generates an e-way bill for a consignment worth Rs 3,00,000 to be moved by road, but the goods are never loaded because the buyer postpones the order. The e-way bill was generated 10 hours ago and the vehicle was never intercepted. As per the CGST Rules, what is the position?

The e-way bill can be cancelled on the common portal because only 10 hours have passed, which is within the 24-hour window, and it has not been verified in transit. The goods were never moved, which is a permitted ground for cancellation under the CGST Rules.

  1. AThe e-way bill can be cancelled electronically on the common portal, since it is within 24 hours of generation and has not been verified in transitCorrect
  2. BThe e-way bill cannot be cancelled and must be left to lapse on its own
  3. CThe e-way bill can be cancelled only after 72 hours of generation
  4. DThe e-way bill can be cancelled only by the recipient, never by the generator

Explanation

Where an e-way bill has been generated but goods are not transported, or are not transported as per the details furnished, it may be cancelled electronically on the common portal within twenty-four hours of generation. The bar applies only if it has been verified in transit. Here 10 hours have passed and no verification occurred, so cancellation is allowed. The 72-hour period relates to acceptance or rejection by the counterparty, not cancellation.

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