E-Way Bill requirement under GST

Last Updated On: May 27, 2020, 6:17 p.m.
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E-way Bill

1. What is an E-way Bill?

Ans: E-way bill is an electronic type of way bill. Way bill is a physical archive to carry the supply of goods. Under the past tax regime i.e. VAT consignment used to accompany by DELIVERY NOTE also known as waybill which was to be obtained from a regime which was an inconvenient process. Due to such difficulties, the electronic e-way bill is passed. In this new system i.e. E-way Bill before moving the goods to recipient details of the transaction are given to tax authorities so that it can be tracked and verified easily. It is required for all movement of goods of value exceeding Rs. 50,000 as directed by the Government of India. It is generated from the E-way Bill portal.
 

2.Objectives of making E-way Bill system

  • Single e-way Bill for movement of the goods throughout the country.
  • To prevent the evasion of tax.
  • Hassle-free movement of goods across India.
  • Tracking the movement of goods with e-way Bill number.
  • Easy verification of the e-Way Bill by the officers.

3.Rules relating to E-way bill system.

  • Information to be furnished by every registered person prior to commencement of the movement of goods and generation of e-Way Bill.
  • After the 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.

         a. The person in charge of a conveyance shall carry The invoice or bill of supply or deliver challan, as the case maybe

         b. A copy of the e-Way bill or e-Way Bill number.

  • 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 Bill.
  • 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 common portal who may utilize the furnishing details in FORM GSTR-1.
  • An officer authorized by the State can intercept any transport 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.
  • A summary report of every inspection of goods in transit shall be recorded online by the proper officer in specified format within 24 hours of inspection and the final report shall be recorded within three days of the inspection in a specified format.
  • If a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the information in a specified format on the common portal.

4.Benefits of Using E-way bill system

  • The traders need not visit tax offices to collect and submit the Way Bill forms as used to be done in VAT regimes in some states.
  • Generation of GSTR-1 returns: GSTR-1 return of the supplier is auto prepared; hence he need not have to upload the same.
  • Officials saved of monotonous work collecting and matching the manual way bill with the returns of the taxpayers.
  • Self-policing by traders: A trader while uploading gives the identification of the buying trader who will also account the transaction automatically
  • The average waiting time period of the mobile squad reduces drastically: As the verification of the e-Way Bill is done with the common portal, it will speed up the process of verification and allows the vehicle to pass faster.

 

5.Who can generate E-way Bill?

  • Supplier of goods as a registered person can register and generate an e-way bill.
  • Transporter of goods as a registered or
  • Even an unregistered transporter can register and generate an e-way bill for the movement of goods for his clients. Even an unregistered person can register and generate e-way bill for movement of goods for his/her own personal use.

6.Registration on E-way Bill Portal having GSTIN i.e. registered persons

Step 1: Log in to site https://ewaybill.nic.in/

Step 2: User need to go on registration tap and register himself.

Step 3: The user needs to enter his GSTIN number. Also, the user should know his mobile number or e-mail I’d registered with GST number on GST Portal. As he would be getting one- time password on the mobile number or email I’d.

Step 4: The User needs to create a unique Username and Password to work in this system. Username should be of 8-15 characters which should be alphanumeric and also contain special characters. The password should also be of at least 8 characters.
 

7.Registration on E-way Bill Portal for Unregistered Dealers

  • An unregistered person needs to register on e-way bill system by using the following method.
  • Needs to enter the following details while registering:
  1. State in which he is applying for registration
  2. Name of the person applying for registration
  3. PAN no. of the applicant, if available
  4. Address of the applicant
  5. Contact Details of the applicant
  6. Then applicant needs to create user id and password
  7. Afterwards, system will generate TRANS ID which can be used for future reference.

8.Registration on E-way Bill Portal for Unregistered Transporters

  • Unregistered transporters need to register on the e-way bill system by using the following method.
  • Needs to enter the following details while registering:
  1. State in which he is applying for registration
  2. Legal Name as mentioned on PAN
  3. Trade Name, if any
  4. PAN is compulsory
  5. Constitution of Business
  6. Address of the Transporter
  7. Contact Details of the Transporter
  8. Then applicant needs to create user id and password
  9. Afterwards system will generate TRANS ID which can be provided to clients to enter in the e-way bill.

 

 

9. When should be e-way bill be issued?

E-way bill shall be generated in every case where there is the movement of goods in a vehicle of the value of more than Rs. 50,000 (either taken on a single invoice or taken in aggregate of all invoices in a vehicle) -

  • When there is a supply, or
  • For reasons other than supply such as sales return, or
  • For inward supply by an unregistered person

10.Documents required to Generate E-way Bill?

  • Invoice by supplier or Bill of supply or challan related to consignment of goods.
  • In case of Transport through road - Transporter ID and Vehicle number and even transporter document number is required in many cases.
  • In case of transport rail, air or ship -  Transporter  ID and Transport Document number and date of the document.

11. Is there any validity period for e-way bill?

Yes, there is a validity period for e-way bill.

The validity of the e-way bill depends upon the distance up to which the goods have to be transported.

Validity period except the movement of goods over Dimensional cargo, the period would be as follows from the relevant date:

Distance Validity Period
Less than 100 Kilometers 1 Day
For every 100 Kilometers or part thereof 1 additional Day

 

Validity period in case of over Dimensional cargo, the period would be as follows from the relevant date:


 

Distance Validity period
Less than 20 Kilometers 1 Day
For every 20 Kilometers or part thereof 1 additional Day

 

 

12.Cases where an e-way bill is not required to be issued

  • The mode of transport of goods is a non-motor vehicle.
  • Goods transported from Customs port, Airport, Air Cargo complex, or land customs station to Inland Container Depot(ICD) or Container Freight Station(CFS) for clearance by Customs. transported by rail where the Consignor of goods is the Central Government, State Governments, or local authority.
  • Goods are transported from the place of business to the place of business of the transporter only if the distance is up to 10 km.
  • Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
  • Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule covered under clause (d) of sub-rule (14) of rule 138, goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.
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