Important Keyword: Notification No. 40/2020 – Central Tax, e-way bill extension May 2020, CBIC GST update May 2020, Section 168A CGST Act, Rule 138 CGST Rules, e-way bill COVID extension, GST transport compliance, Notification 40/2020 summary, Finodha GST compliance services, GST return filing India 2020.
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[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 5th May, 2020
Notification No. 40/2020 – Central Tax: Seeks to extend the validity of e-way bills till 31.05.2020 for those e-way bills which expire during the period from 20.03.2020 to 15.04.2020 and generated till 24.03.2020.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R.....(E).– In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council,
Hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.35/2020- Central Tax, dated the 3rd April, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235(E), dated the 3rd April, 2020, namely:-
In the said notification, in the first paragraph, in clause (ii), the following proviso shall be inserted, namely: -
“Provided that where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 on or before the 24th day of March, 2020 and its period of validity expires during the period 20th day of March, 2020 to the 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 31st day of May, 2020.”.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 35/2020-Central Tax, dated the 3rd April, 2020, published vide number G.S.R. 235(E), dated the 3rd April, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 40/2020 – Central Tax
Q1: What is Notification No. 40/2020 – Central Tax about?
Answer:
It extends the validity of e-way bills that expired between 20th March 2020 and 15th April 2020, provided the e-way bill was generated on or before 24th March 2020. The new validity date is 31st May 2020.
Q2: Why was this extension necessary?
Answer:
Due to the nationwide COVID-19 lockdown, goods in transit could not be delivered on time, and e-way bills expired before reaching destinations. This extension avoided penal action for transporters and ensured smooth goods movement once lockdown restrictions were lifted.
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Q3: What is an e-way bill in GST?
Answer:
An e-way bill is an electronic document generated on the GST portal for the movement of goods valued over ₹50,000. It contains details like the consignor, consignee, goods description, and transport vehicle number as per Rule 138 of the CGST Rules, 2017.
Q4: Which e-way bills were eligible for extension under this notification?
Answer:
✅ e-way bills generated on or before 24th March 2020, and
✅ whose validity expired between 20th March 2020 and 15th April 2020.
These were automatically extended till 31st May 2020.
Q5: What is the period of extended validity under Notification No. 40/2020 – Central Tax?
Answer:
All eligible e-way bills received an automatic extension till 31st May 2020, irrespective of their original expiry date within the specified range.
Q6: What legal provisions empower this extension?
Answer:
The notification relies on:
Section 168A of the CGST Act, 2017 – allows extensions due to force majeure (e.g., COVID-19 lockdown).
Rule 138 of the CGST Rules, 2017 – governs e-way bill generation and validity.
Sections 20 & 21 of IGST/UTGST Acts – allow similar provisions across integrated and union territories.
Q7: Does this apply to all states and union territories?
Answer:
Yes ✅, the extension applies pan-India, including Union Territories, as notified under the UTGST Act, 2017.
Q8: What happens if an e-way bill was generated after 24 March 2020?
Answer:
e-way bills generated after 24th March 2020 were not eligible for automatic extension. Their validity followed the regular time limits under Rule 138(10).
Q9: What was the validity of e-way bills before this notification?
Answer:
Normally, e-way bills are valid for:
1 day for every 100 km of distance for regular vehicles.
1 additional day for every extra 100 km.
Once expired, goods cannot be moved without a valid e-way bill.
Q10: How did this notification help transporters during lockdown?
Answer:
🚚 It prevented penalties for goods stuck mid-transit due to road closures.
📦 Allowed businesses to continue logistics operations post-lockdown.
💼 Reduced the need to regenerate multiple e-way bills, saving time and effort.
Q11: How can a business verify if their e-way bill validity was extended?
Answer:
Businesses could check the GST e-way bill portal (ewaybillgst.gov.in) where eligible e-way bills were automatically marked with extended validity.
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Q12: Does the extension cover intra-state movement of goods?
Answer:
Yes ✅, the extension applies to both inter-state and intra-state movement of goods under the CGST Rules.
Q13: What if goods reached the destination after the e-way bill expired (before the extension)?
Answer:
Such cases were covered under this notification—no penalty or fine was applicable if the e-way bill fell within the extension window.
Q14: What are the penalties for an expired e-way bill outside this extension period?
Answer:
If an e-way bill expires outside this extended period, penalties under Section 129 of the CGST Act apply, including:
Detention of goods and vehicle.
Payment of tax and penalty equal to 100% of the tax payable.
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Q15: Who issued and signed this notification?
Answer:
It was issued by the Ministry of Finance (Department of Revenue) under the CBIC and signed by Shri Pramod Kumar, Director, Government of India.
🏁 Conclusion
Notification No. 40/2020 – Central Tax was a much-needed relief for transporters and businesses during the COVID-19 lockdown. By extending the validity of e-way bills till 31st May 2020, it ensured that no taxpayer faced penalties for expired bills due to movement restrictions.
💡 Pro Tip:
Stay compliant with all GST timelines—avoid penalties and delays with Finodha GST Compliance Services and Finodha GST Return Filing.
Download PDF: Notification No. 40/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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