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CMA Final · Indirect Tax Laws and Practice · E-way Bill

Under Rule 138(9), a registered supplier generated an e-way bill at 11:00 a.m. on Monday but the goods were not dispatched. Which statement is correct?

The e-way bill can be cancelled electronically on the common portal within 24 hours of its generation, but only if it has not been verified in transit. The 72-hour limit applies to deemed acceptance by the other party, not to cancellation.

  1. AIt may be cancelled electronically within 24 hours of generation, provided it has not been verified in transitCorrect
  2. BIt may be cancelled within 72 hours of generation
  3. CIt may be cancelled at any time before expiry of its validity, even if verified in transit
  4. DIt cannot be cancelled and must be allowed to lapse

Explanation

Rule 138(9) allows cancellation electronically within twenty four hours of generation where goods are not transported or not transported as per details. The first proviso bars cancellation if the e-way bill has been verified in transit under rule 138B. The 72-hour period relates to acceptance or rejection by the counterparty under Rule 138(12).

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