Under the GST regime, many important reforms were introduced to improve the country's economy. Electronic Way Bill or e-way bill is one of those changes. Under VAT, different states had different E-Way bill provisions. Under the GST regime changes were made to bring uniform provisions throughout the nation. The e-way bill was brought to effect on 1st April, 2018.
Points covered in this article are
What is an E-Way bill?
When should an E-Way bill be generated?
Who should generate an E-Way bill?
Purpose of generating E-Way bill
Important provisions under the CGST Act
Steps to generate an E-Way bill
Validity of E-Way bill
Exceptions to E-way bill generation
Cancellation of E-Way bill
Consequences of not obtaining E-Way bill
1. What is an E-way bill?
It is a document to be obtained for intrastate or interstate movement of goods or consignment. It serves as evidence for goods being transported within the country. It includes all the details about the goods being transported, consigner, consignee etc. The E-Way bill is to be generated on GST portal
2. When should E-Way be generated?
a. Goods being transporting from one state to another (i.e. Interstate movement):
When the value of consignment to be transported is above Rs.50,000, e-way bill is to be obtained. It is mandatory to acquire an e-way bill either if the value of each consignment or the aggregate value of the whole consignment exceeds the threshold limit.
b. Goods being transporting within state (i.e. Intrastate movement):
Threshold limit within state dependent upon state to state like in Delhi when the amount of each consignment or the aggregate value of all whole consignment is above Rs. 100,000 then there is mandatory requirement to obtain the e way bill.
3. Who should generate the E-Way bill?
● Under rule 138 of the CGST rules, 2017 E-Way bill is issued whether the movement of goods is in relation to supply or otherwise
● If the transportation is being done by railway or vessel then consigner or consignee himself should generate E-Way bill
● If the transportation is by road then, the consigner or consignee or even transporter should generate the e way.
● If goods is transported by a principal in one state to a job worker in other state, the e-way bill is to be obtained by the principal irrespective of value of the goods
4. Purpose of generating E-Way bill
It is used as a tool to ensure that the GST law is being complied to in movement of goods. Also it is used to track movement of goods and keep an eye on tax evasion
5. Important provisions under the CGST Act
● When multiple consignments are being carried in same consignment, an E-Way bill is to be generated for each consignment exceeding Rs.50,000
● For multiple consignment in same vehicle a consolidated bill showing serial number of each bill is to be obtained
● Sometimes more than one vehicle is used for transporting goods from point A to B. Under such circumstances, when goods are transported from one vehicle to other details of such transfer is to be updated in the E-Way bill portal in Form GST EWB-01
● Person in charge of conveyance should carry invoice, challan or bill of supply whichever applicable along with e way bill.
6. Steps to register on E-Way bill portal
1. One may have to visit on E-Way bill Portal https://ewaybillgst.gov.in/ and for registration enter GSTIN in E-Way bill portal
Note : First you have to obtain the GST registration if you want to register yourself as registered dealer otherwise for unregistered person they can directly generate the e way bill without any registration on e way bill portal
2. Authentication is to be done by verifying phone number
3. Finally, by entering PAN and Aadhar details, one can enroll on the portal
7. Validity of E-Way bill
The validity of the E-Way bill depends on the distance of transportation. For every 100 Km validity of the bill is one day from the relevant date. For an addition of every 100 Km one day validity is added. The relevant date shall be the day on which the bill is generated. If because of uncertain reasons transportation could not be commenced in time, the details should be updated in the E-Way bill portal
8. Exception to E-Way bill generation
There are certain cases where generating an E-way bill is not mandatory.
● Transportation through non-motorized vehicles
● Transportation of goods from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for Customs clearance
● Exceptions given under rule 138 of CGST Rules, 2017
● If the value of goods being transported is below Rs.50,000 for interstate and intrastate movement dependent upon state to state
9. Cancellation of E-Way bill
If under circumstances after the generation of E-Way bill, the goods are either not transported or transportation is not as per the details furnished in the bill then it can be cancelled. Cancellation can be made online through the portal or through SMS. However, the cancellation should be made within 24 hours of generation of the bill. If transit verification is made then cancellation cannot be made
10. Consequences of not obtaining E-Way bill
If a person does not generate an E-Way bill when required to, they will be penalised under Rule 138 of CGST Act, 2017. The amount of penalty will be Rs. 10,000 or tax evaded whichever is greater
Eway bill provisions were introduced to remove the prevailing system of bills under VAT in different states. Each state had a different E-Way bill provision which made compliance difficult. In order to bring uniform E-Way bill provisions throughout the country, new provisions were introduced under the GST Act. These changes and amendments were made with a view to track movement of goods and also make movement of goods faster.
Frequently Asked Questions
1. Is E- Way mandatory only when goods transported are in relation to supply?
Generating E-Way bill is mandatory if the goods are in relation to supply or for any other purpose
2. Can a transporter generate an E-Way bill?
Transporter, Consignor or Consignee can generate E-Way bill
3. Can changes be made in an E-Way bill after generation?
Bills can be cancelled within 24 hours of generation.
4. What is the validity of an E-Way bill?
E-Way bill is valid for 24 hours of generation for every 100 Km
5. What is the penalty for not generating an E-Way bill?
Penalty of Rs.10,000 or tax sought to be evaded, whichever is greater will be charged as penalty.
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