As it is well known that the GST Council has decided to implement the e-way bill mechanism throughout the country from February 1,2018. In a notification released earlier this month, the GSTN informed the transporters that E-way bill would become mandatory for inter-state movements of goods from February 1, 2018. And the nationwide e-way bill system is being rolled out on a trial basis by January 16. But in order to be fully Compliant to the E-way Bill System, we should be clear about the concept of E-way Bill system that what actually is the E-way bill and what we have to do while transporting our goods to the Buyer.
E-way bill is an electronic document generated on the GST portal evidencing movement of goods. Every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs 50000 is required to furnish the details of GSTIN of recipient, place of delivery, invoice or challan number and date, value of goods, HSN code, transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and reasons for transportation and transporter details (Vehicle number).
E-way bill can be generated by the consignor or consignee himself if the transportation is being done in own/hired conveyance or by railways by air or by Vessel. If the goods are handed over to a transporter for transportation by road, the bill will be generated by the transporter. Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than Rs.50,000 it shall be the responsibility of the transporter to generate it.
E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion.
The validity of e-way bill depends on the distance to be travelled by the goods. For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant date. For every 100 Km thereafter, the validity will be additional one day from the relevant date. The "relevant date" shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.
In general, the validity of the e-way bill cannot be extended. However, Commissioner may extend the validity period only by way of issue of notification for certain categories of goods. Further, if under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details again.
No, there are some exceptions to e-way bill requirement, where it is not necessary to generate E-way Bill:
1. The mode of transport of goods is non-motor vehicle.
2. Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
3. The distance between the consigner or consignee and the transporter is less than 10 Kms and transport is within the same state.
4. Transport of specified goods (PDF of List of Goods)
E-way Bill is actually a new process introduced to ensure that a taxpayer, prior to movement of goods via a conveyance , would inform each transaction’s details to the tax department, obtain an acknowledgement number for having thus informed, and then use this acknowledgement number as a valid document accompanying the truck. The idea is that the taxpayer be made to upload the details of each transaction to a common portal through the Internet, and once uploaded, the common portal would automatically generate a document is issued, it can be tracked and verified easily by any stakeholders.
1. Information to be furnished by every registered person prior to commencement of the movement of goods and generation of e-Way Bill.
2. Upon generation of the e-Way Bill on the common portal, a unique e-Way Bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
3. The person in charge of a conveyance shall carry —
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-Way Bill or the e-Way Bill number.
4.The details of e-Way Bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-Way Bill.
5. The information furnished while generating e-Way Bill such as
1) GSTIN of recipient,
2) Place of delivery,
3) Invoice Number,
4) invoice date,
5) Value of goods,
6) HSN code, etc.
shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1.
6. An officer authorised by the State can intercept any conveyance to verify the e-Way Bill or the e-Way Bill number in physical form for all inter-State and intra-State movement of goods.
7. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in specified format within twenty four hours of inspection and the final report in specified format shall be recorded within three days of the inspection.
8. Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in a specified format on the common portal.
There are four stakeholders who have some stake in the movement of the consignment from one place to another and hence on the e-Way Bill. They are suppliers, recipients, transporters and tax officers. The suppliers, recipients and transporters want to see that the consignment moves from source to destination without any hurdles and tax officers want to see that the consignment is accounted by the supplier and recipient.
To achieve, they need to have access to the e-Way Bill system. The provision has been made for them to access the system. The GST registered person can register on the e-way bill and create his user credentials to use the system. GST registered person can be a supplier, recipient or transporter. In case the transporter is small operator and not registered under the GST, then this system provides the mechanism to enrol and create his user credentials to operate on this system.
The registration mechanism for the GST taxpayers for the e-Way Bill system is a simple process. One time GST taxpayer needs to register on this system. To do that the taxpayer needs to have the GSTIN issued under the GST system and mobile number registered with the GST system with him. Once a user enters into the URL address ewaybill.nic.in of the E-Way Bill System in his browser, the Login screen will appear for the Registration of Supplier (Registered/ Unregistered) as well as Transporter. Transporters who want to generate e - way bill can visit the 'ewaybill.nic.in' portal and register themselves by giving the GSTIN. Transporters who are not registered under GST can enrol themselves under e - way bill system by providing their PAN or Aadhaar to generate the eWay.
Step by Step Process for Registration of E-way Bill system is shown with pictures is provided in the Manual which can be downloaded from the below Link.
As of now, 10 States have joined the E-way Bill Platform among which six states , including Gujarat, Haryana and Bihar, today joined the government's centralised e - way bill system for inter- state road transportation of goods in the GST regime.
Under the Goods and Services Tax rolled out from July last year, inter- state movement of goods beyond 10 km, with a value of Rs 50,000 and above, will mandatorily require e - way bill from February 1.
Four states - Karnataka, Rajasthan, Uttarakhand and Kerala -- had already started using e - way Bill . And today, six more states -- Haryana, Bihar, Maharashtra, Gujarat, Sikkim and Jharkhand - have started the trial runs kickstarted by the GST Network ( GSTN ).
Other states are also likely to join the E-way Bill System soon in this initiative and it will be implement it throughout the country from next month. Transporters and other taxpayers will not be required to visit any tax office or check post under this system and the E - way Bill can be generated electronically .