E-way Bill and their Provisions under GST

Last Updated On: Feb. 12, 2022, 10:38 p.m.
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E-WAY BILL AND THEIR PROVISIONS UNDER GST

GST has replaced erstwhile taxes with an uniformed Indirect Tax across the country.

 

Prior to implementation of GST there were so many taxes like

Central Excise – Tax on Manufacturing

Service Tax – Tax on Services

State VAT – Tax on Sales within State

CST – Tax on Sales between States

 

 

During implementation of GST, it was being considered as Accounts and Legal based tax as the erstwhile Central Excise, VAT, CST & Service Taxes. The erstwhile taxes were fully based on Tax liabilities and Audits, since the majority of the transactions are manual. There is no record at Government end, other than what we are submitting to the Government departments. The tax authorities normally analysis the data what we are submitting to them and issue notices if any discrepancies are found. Hence the companies fully relied on Accounts and legal department to convince the tax authorities proactively.

What is E-way bill?

Electronic Way bill (E-Way Bill) under GST As per Section 68 of CGST Act, 2017 and Rules 138 of CGST rules, 2017, E-way bill is required to be generated before movement of the goods. In this article we will understand about the following:

1. What is E-way bill

2. When E-way bill is mandatory to be generated

3. When E-way bill is not required to be generated

4. Who should generate E-way bill

5. How E-way bill is generated

6. If there is mistake in e-way bill what has to be done

7. Validity of e-way bill

8. How value of goods is calculated

9. E-way bill in case of multiple consignments in single vehicle or multiple vehicle for single consignment

10. Bill-to-ship-to-model

11. E-way bill in case of intra state movement of goods

12. Documents required for generating E-way bill

 

E-way bill is a document generated electronically on GST portal prior to the commencement of movement of goods.

It comprises of two parts i.e. Part A and Part B.

Part A: It comprises of GSTN of recipient, Place of delivery, date, invoice no. or delivery challan, value of goods, HSN code, transport document no. (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and  reasons  for  transportation;  and

Part B: It comprising of transporter details (Vehicle number).

 

 

Is E-way Bill Mandatory?

In case of interstate movement of goods by principal to job worker.

In case of interstate movement of handicraft goods.

If the value of goods exceeds 50,000/- or voluntarily also it can be created if the value is less than or equal to 50,000/-.

 

In which case E-way Bill is not generated?

On transportation of goods as described in Annexure A of Rule 138 of CGST Rules, 2017.

In case goods are moved within state for 10 km for further transportation no need to mention vehicle number for such transportation.

 

What are the documents required for generating E-way bill

Invoice/ Bill of Supply/ Challan related to the consignment of goods

Transport by road – transporter ID or Vehicle number

Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document.

 

Who has to generate E-way Bill?

  • E-way bill can be generated by the consignor or consignee if the transportation is being done by their own/hired vehicle, railway, air or by vessel.
  • In case of Job work, if the goods are sent by principal to job worker in other state then principal has to generate it, no matter what is the value of the consignment.
  • In case of handicraft goods, transported from one state to another then E-way bill is compulsory required to be generated by the said person irrespective of the value of the consignment.
  • If it is done through road, then transporter will generate the E-way bill i.e. part B details will be filled by the transporter. Part A to be filled by the registered person only. However, transporter can also generate Part A after taking authorization from the consignor or consignee.
  • If the value of goods is more than Rs. 50,000 and neither consignor nor consignee have generated E-way bill then transporter should generate it.

 

a. If Seller & Buyer both are registered: Seller will generate

b. If Seller is unregistered and Buyer is registered: Buyer will generate

c. If Seller and Buyer both are unregistered: Transporter will generate

 

What is the procedure to generate E-way Bill?

Registered persons are required to register on the portal https://ewaybillgst.gov.in/ using GSTN

Once GSTN is entered, OTP will be generated on registered mobile number (mobile linked with GST) and after authentication, portal enable to create username and password on e-way bill portal.

Once the Username & password are set then, Part A is to be filled by the consignor/consignee/transporter as the case may be and Part B (transporter details) by the person who is transporting the goods.

In case the transporter is not registered but causes movement of the goods for their clients, then transporter is required to enroll on e-way bill portal and generate 15 digit Unique Transporter ID

 

What is the Validity of E-way Bill?

Validity depends on the distance of the goods need to be transported. In case of regular vehicles, for every 200 km 1 day validity has been provided. In case of over-cargo dimensional vehicle for every 20 km or part thereof validity of one day is provided. This validity expires on mid night of last day.

For example an e-way bill is generated on 23:58 hours on 08.02.22 then first day will end on 0:00 hours of 9.02.22 and 10.02.22, second day on 0:00 of 10.02.22 to 11.02.22 and so on.

 

Penalty for Non-Generation of E-Way Bill:

If e-way bills, wherever required, are not issued in accordance with the provisions contained in Rule 138, the same will be considered as contravention of rules. As per Section 122(1)(xiv) of CGST Act,2017, a taxable person who transports any taxable goods without the cover of specified documents (e-waybill is one of the specified document) shall be liable to a penalty of ₹ 10,000/- or the amount of tax sought to be evaded (wherever applicable) whichever is greater. Moreover, as per Section 129(1) of CGST Act,2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the Rule made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.

 

Whether penalty needs to be paid even in case of minor offenses.

CBIC vide Circular No. 64/38/2018-GST dated 14-09-2018 has clarified as follow, The consignment of goods must be accompanied by tax invoice or delivery challan and e-way bill. In case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings u/s 129 of CGST Act’17 may not be initiated in following situations-

(a) Spelling mistake in the name of the consignor or the consignee but GSTIN, wherever applicable, is correct;

(b) Error in the PIN Code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN Code should not have the effect of increasing the validity period of e way bill.

(c) Error in the address of the consignee to the extent that locality and other details of the consignee are correct.

(d) Error in one or two digits of the document numbers mentioned in the e way bill.

(e) Error in the 4 or 6 digit level of HSN where first 2 digits of HSN are correct and the rate of tax mentioned is correct.

(f) Error in the one or two digit / characters of the vehicle number.

 

Penalty For Transporting Goods Without Documents:

Conveyance carrying goods in contravention of the provisions of this Act and Rules is liable to detention and seizure. After detention / seizure, the goods & conveyance shall be released on payment of amount to be ascertained as per Section 129 of the CGST Act’17 and Notification 39/2021-CT dated 21-12-2021, wherein Central Government appoints 01.01.2022 as the date for various amendments made through Finance Act, 2021 to come into force. (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released, ––

(a) on payment of penalty equal to two hundred per cent (200%) of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent (2%) of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty;

(b) on payment of penalty equal to fifty per cent (50%) of the value of the goods or two hundred percent (200%) of the tax payable on such goods,whichever is higher, and in case of exempted goods, on payment of an amount equal to five percent (5%) of the value of goods  or twenty-five thousand rupees, whichever is less, where the owner of goods does not come forward for payment of such penalty.

(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:

PROVIDED that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods

 

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