E-way bill cancellation is a critical process under the GST regime:

E-Way Bill Cancellation

E-way bill cancellation is allowed in specific circumstances:

Reasons for Cancellation

1. Error in E-Way Bill: Incorrect details or mistakes.
2. Goods Not Transported: Goods not transported as per e-way bill.
3. Cancellation of Supply: Supply cancelled or goods returned.
4. Duplicate E-Way Bill: Duplicate e-way bill generated.

Cancellation Process

1. Login to E-Way Bill Portal: Access the e-way bill portal.
2. Select E-Way Bill: Choose the e-way bill to be cancelled.
3. Reason for Cancellation: Select reason for cancellation.
4. Confirm Cancellation: Confirm cancellation.

Time Limit for Cancellation

1. Within 24 hours: E-way bill can be cancelled within 24 hours of generation.

E-Way Bill Cancellation Consequences

1. E-Way Bill Deactivated: E-way bill becomes inactive.
2. ITC Impacted: Input tax credit (ITC) may be impacted.

Documents Required

1. E-Way Bill Number: Original e-way bill number.
2. Cancellation Reason: Document supporting cancellation reason.

Penalties for Incorrect Cancellation

1. Penalty: Up to ₹10,000 or amount of tax evaded.
2. Interest: 18% per annum.

Best Practices

1. Verify E-Way Bill Details: Ensure accuracy before cancellation.
2. Maintain Records: Keep records of cancellation.
3. Update Knowledge: Stay informed about cancellation rules.

References

1. GST Act, 2017.
2. GST Rules, 2017.
3. CBIC notifications.

Additional Resources

1. E-way bill portal (ewaybill.nic.in).
2. GST portal (gst.gov.in).
3. CBIC website (cbic.gov.in).

E-Way Bill Cancellation FAQs

1. How to cancel an e-way bill?
2. What are the reasons for e-way bill cancellation?
3. What are the consequences of e-way bill cancellation?