E-way Bill is compulsory to be generated by the registered person (supplier/recipient) or the transporter where the goods of consignment value exceeding Rs. 50,000 are transported from one place to another. E-way bill contains details such as name of the supplier and recipient, details of vehicle, approximate distance in kms., details of consignment etc. The person-in-charge of conveyance shall carry e-way bill during the course of transport of goods.
Sometimes, e-way bill is required to be cancelled after generation on the E-way Bill portal. There can be following reasons for cancellation of e-way bill:-
(a) Either the goods are not transported; or
(b) Errors are made in furnishing details in e-way bill thus, the details in the e-way bill are found to be inaccurate.
So, a question arises as to "whether an e-way bill can be cancelled or not?"
The answer of this question is "affirmative". Yes, e-way bill can be cancelled after generation on the E-way Bill Portal. But there are certain restrictions on cancellation of e-way bill as given under GST law. Rule-138(9) of CGST Rules, 2017 provides such restrictions.
As per GST law, you can cancel e-way bill generated on e-way bill portal only within 24 hours of its generation. Once, a time period of 24 hours ends, you can not cancel the e-way bill. Also, where the e-way bill has been verified during the course of transit by GST officials, such e-way bill can not be cancelled even if the time period of 24 hours has not elapsed.
Cancellation of e-way bill after 24 hours:
Practically, there is no mechanism of cancellation of e-way bill after 24 hours of its generation on the portal. But still there is a provision in the GST law which can come to your rescue. The GST law provides the right of acceptance or rejection of the e-way bill within 72 hours of its generation.
Suppose, the supplier 'A' generated the e-way bill in favour of recipient 'B'. 'B' in this case, can accept or reject the e-way bill within 72 hours of its generation or delivery of goods, whichever is earlier. But suppose, the e-way bill is generated by 'B' in favour of supplier 'A', the GST e-way bill portal permits 'A' to accept or reject the e-way bill within the stipulated time limit of 72 hours.
Therefore, if the time limit of 24 hours expires, you can opt for the rejection mechanism within 72 hours of e-way bill generation. Please note that there is no procedure of cancellation of e-way bill after 72 hours.
Modification of e-way bill:-
There is no such provision in the GST law which provides for the procedure of modification in the e-way bill to rectify the inadvertent errors or mistake. Therefore, you have only one choice- First cancel the incorrect e-way bill within the prescribed time limit and then re-generate the new e-way bill.
Thus, it is advised to readers that proper care should be taken while generating the e-way bill or accepting it, as any wrong information furnished in the e-way bill may cost you dearly in the form of penalties.
