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" Theory of E- Way Bill Under GST "

What is an E- Way Bill?

E- Way Bill or Electronic Way Bill is an electronic document, generated for transport of goods of more than ₹50,000 anywhere in India except Delhi. For movement of goods within Delhi, E- way bill is generated for goods whose value is more than ₹1 lakh.

The E- Way Bill is generated online irrespective of whether the transportation of goods is inter- state or intra- state. It can also be generated or cancelled through SMS, Android App and by Site-to-Site Integration (through API). E- Way bill generated in any state shall be valid in every state and UTs.

When an E- Way Bill is generated, a unique E- Way Bill number (EBN) is allocated and is made available to the supplier, recipient, and the transporter.

Who should generate an E- Way Bill?

Under GST regime, an E-way Bill is required to be generated by –

· Registered Person –

E- Way Bill must be generated for transport of goods of more than₹50,000 to or from a Registered Person.

a)     When a registered person causes the movement of goods as a consigner (i.e. buyer) or consignee (i.e. seller) in his own vehicle or hired vehicle or railways or by air or by ship, then either the registered person or the recipient has to generate the E- Way Bill in form GST EWB- 01 electronically on the common portal after furnishing information in Part B of form GST EWB- 01.

b)     Where a registered person causes the movement of goods and hands over to the transporter for transportation by road, but the E- way bill is not generated, then it is the responsibility of the transporter to generate the E- way bill. The registered person shall first furnish the information relating to the transporter in Part B of form GST EWB- 01. After that the transporter will generate the E- Way Bill on the basis of the information furnished by the registered person in Part A of form GST EQB- 01.

· Unregistered Person –

Unregistered persons are also required to generate E-Way Bill.

a)  When an unregistered person causes the movement of goods in his own vehicle or hired vehicle or using the services of the transporter, then either the unregistered person or the transporter is required to generate the E- Way Bill in form GST EWB- 01 electronically on the common portal.

b)   When an unregistered person supplies goods to registered person and the registered person is known at the time of commencement of movement of goods, it would be deemed that the movement of goods is caused by the registered person. In this case, the registered person or the transporter shall complete the formalities of the E- way bill.

When Should You issue a E- Way Bill?

E- Way bill : To be generated before the movement of goods in a vehicle/ conveyance of value more than ₹50,000 (either Individual Invoice or multiple Invoices in a vehicle/ Conveyance). The movement of goods shall be –

·         In relation to a supply

·         For reasons other than a supply, say a return

·         Inward supply from an unregistered person

For purpose of an E- way bill, a supply is considered payment in either of the following:

·         In the course of business

·         Not in the course of business

·         Without consideration (without payment). In simpler terms, supply means a sale, transfer or barter/exchange.

How to generate E- Way bills?

E- Way bills in EWB-01 can be generated by either of two methods:

1.      On the Web

2.      Via SMS

Following are some requirements for generating an E- Way bill:

·         Registration on the E- Way bill portal.

·         The Invoice/ Bill/ Challan related to the consignment of goods.

·         If transport is by road – Transporter ID or the Vehicle number.

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

Situations when E- Way bill is not required :

In the following situations, it is not necessary to generate E- Way Bill:

·         The goods are transported by a non-motor vehicle

·         They are transported for a distance less than 10 km within the same state from the place of business of the transporter to the place of business of the consignee.

·         The goods are transported for a distance less than 10 km within the same state from the place of business of the consignee to the place of business of the transporter for further transportation.

·         Goods transported from Customs port, airport, and air cargo complex or land customs station to Inland Container Depot or Container Freight Station for Customs clearance.

·         Transit cargo transported to or from Nepal or Bhutan

·         Empty Cargo containers are being transported

·         Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.

·         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

Note: Part B of E-Way Bill is not mandatory to be fill where the distance between the consigner or consignee and the transporter is less than 50 Km and transport is within the same state.

Validity of E-Way Bill :

The validity of the E-way bill is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Distance Validity of EWB
Less Than 100 Kms 1 Day
For every additional 100 Kms or part thereof Additional 1 Day
Less Than 20 Kms 1 Day
For every additional 20 Kms or part thereof Additional 1 Day

The commissioner can also provide extension of the Validity period of E-Way bill for specific categories of goods.

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

Responsibilities of the Transporter :

·         Transporters carrying goods by road, air, rail, etc. also need to generate E-Way Bill if the supplier has not generated the Bill due to any reason.

·         Transporters need to generate E-way bill on basis of information shared by the suppliers/ consignors regarding the Invoice/challan.

·        If the transporter does not generate in the above circumstances when he needed to, he may face penalty of ₹10,000 or tax assumed to be evaded, whichever is greater. He is further liable for confiscation of goods and seizure of vehicle.