What happens if E-Waybill is generated but goods are not transported?
Answer: In case EWB is generated but no movement of goods took place, it may be cancelled, as EWBs that are not accepted, cancelled, rejected within 72 hours will be admitted as valid and create a trail for further reporting and verification by tax authorities. (i.e. deemed to be accepted even if no movement of goods took place )
It may lead to mismatch in sales reported in GSTR1/3B and E-way bills statistics and result in unnecessary reconciliation of invoices-E-waybills. Further may lead to penalties w.r.t. eway-bill non compliance
Authority to cancel EWBs and time limit for cancellation.
A) Cancellation of E-waybill by the Consignor/ Originator/ Generator of E-waybill
- Goods are either not transported or
- Duplicate generated or
- Order Cancelled or
- are not transported as per the details furnished in the e-way bill or
- For any other reason ( to be specify),
the e-way bill may be cancelled electronically on the common portal within twenty-four hours of generation of the e-way bill.
However, that an e-way bill cannot be cancelled if it has been verified within 24 hrs of generation by officer
B) How to cancel e-way bill after 24 hours ?
However, if the time period for rejection of 72 hours also lapses then no mechanism is provided in the rules.
Conclusion: Organisations must keep track of EWBs generated, generated but no movement of goods took place, EWBs cancelled etc. It is very important that all EWBs that are not supported by proper movement of goods or are invalid or wrongly generated must be immediately cancelled.
