A Complete Guide on GST eWay Bill, Its Rules And Generation Process
The GST mandates transporters to carry an eWayBill for moving goods from one place to another, under certain circumstances only. In its latest update, the GST council made E-Way bill operations compulsory for all the states for intra-state movement of goods.
Let’s start with GST eWayBill and its definition first:
eWay Bill: GST EWay Bill is an Electronic Way Bill which is required to be generated on the eWay Bill Portal for the movement of goods. A GST registered person who wants to transfer goods of valuation more than INR 50,000 via a vehicle mandatorily required to provide an e-way bill that is either generated on ewaybillgst.gov.in or through SMS, Android App and by site-to-site integration through API. A unique Eway Bill Number (EBN) is allocated for each eWay bill during its generation which is further provided to all, the supplier, recipient, and the transporter. There is govt authorized Gen GST return filing and billing software which is one of the most economical and dynamic GST Software which will help in preparing for unlimited client return filing and GST eway bill further make them as per the govt compliance.
When Should eWay Bill be issued?
eWay Bill is issued when goods of valuation more than INR 50,000 is transported through a vehicle/conveyance. Mentioned amount could be of a single invoice or sum of all the invoices in a vehicle/conveyance. The purposes for which the eWay Bill is issued includes
Supply of goods
For return of goods
For an inward ‘supply’ from an unregistered person
For the purposes mentioned above, the supply could be either of the following
A supply made against consideration (payment) during business
A supply made against consideration (payment) which may not be during the business
A supply made not for consideration (no payment), here supply means as
1. Sale- sale of goods and payment made
2. Transfer- Transfer of goods from one branch to another
3. Barter/Exchange- Goods exchange in place of receiving money as payment
For all these types of movement, the generation of eWay Bill through the common portal is mandatory. While, a few specific goods require generation of eWay Bill as mandatorily even if the valuation of goods is less than INR 50,000:
- Inter-State supply of Goods by the Principal to the job-worker by Principal/ registered Job-worker,
2. Inter-State movement of Handicraft goods from a dealer exempted from GST registration.
Who Should Generate An e-Way Bill?
GST Registered Person: The necessary conditions for the e-Way Bill generation are the valuation of goods being moved is more than INR 50,000 and a GST registered person. A GST registered person or the transporter is liable to generate and carry eway bill even if the valuation of goods is less than INR 50,000.
Unregistered Persons: There is need of e-Way Bill generation for the unregistered persons as well. In case an unregistered person makes supply of goods to a registered person, the receiver will ask for e-Way Bill in order to check that all the compliances are met by the unregistered person as a supplier.
Transporter: Transporters who supply goods through any mode of transport whether road, rail, air etc are required to generate e-waybill if one is not generated by the supplier.
Latest update on 23rd Mar 2018:
There is no need of generating the Eway bill (as Form EWB-01 or EWB-02) for the transporters in case all the consignments in the vehicle/conveyance:
Individually (single Document) has valuation less than or equal to INR 50,000 BUT
In Aggregate(all documents put together) valued more than INR 50,000
Documents refers to Tax Invoice/Delivery challan/Bill of supply
A transporter ID will be issued to Unregistered Transporters for enrollment on the e-way bill portal only after which Eway bills can be generated.
Note: incase multiple consignments are being sent by the transporter in a single conveyance, the transporter should use the Form GST EWB-02 for the generation of a consolidated e-way bill, by mentioning e-way bill numbers of each consignment. If the transporter is not provided with e-way bill from either the supplier or the receiver, the transporter himself is liable to generate e-way bill by filing out Part A of Form GST EWB-01 with the provided information in the form of invoice/bill of supply/delivery challan.
4. In Which Cases E-Way Bill is Required?
Given below are the cases when there is no need to generate e-way bill:
1. If the conveyance used for movement of goods is a non-motor vehicle
2. If goods are transported through Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
3. Goods which are transported under Customs supervision or under customs seal.
4. If the transport of goods take place under Customs Bond i.e. from ICD to Customs port or can say from one custom station to another
5. If the transit cargo is transported to or from Nepal or Bhutan
6. In case the Ministry of defence makes movement of goods for defence formation whether as consigner or consignee
7. If the empty cargo containers are being transported
8. If the supplier transports goods to or from between place of business and a weighbridge for weighment at 20km distance, there will be need of a Delivery challan.
9. If the consignor of goods being transported from rail is the Central Government, State Governments or a local authority.
10. A number of specific goods are also exempted from the generation of eway bill in their respective State/ Union territories as prescribed in the GST rules.
11. There are certain specified goods of which transport does not require eway bill which includes the list of exempt supply of goods, Annexure to Rule 138 (4), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate.
Note: if the distance between the supplier or receiver and the transporter is less than 50Km and all are in the same state, then there is no need of filling Part B of e-Way bill.
5. E-Way Bill Implementation Status Across India
Since the implementation of E-Way Bill started from 1st April 2018, an increase in the generation of eway bills has been observed for the inter-state movement of goods. State-wise implementation of e-way bill system is appreciated by all the states and union territories following which they have joined eway bill generation league for the inter-state movement of goods within the state/UT. However, the people of few states are provided with the benefits of eway bill generation exemption in case of they did not exceed monetary amount limit or a number of specified items. For example, Tamil Nadu gave relief to its people from the generation of eway bill if the consignments monetary limit falls below INR 1 lakh.
How to Generate e-way Bills
In lieu of generating e-way bills one can opt for online method via e-way bill system or via SMS. The generation of e-way bill should be done before the movement of goods starts about supply/ reasons other than supply/ inward supply from an unregistered person. [supply stands for sale of goods and payment made/branch transfer/ barter or exchange]. There is an another solution for generating GST eway bill via Gen GST software which has all the features to support the eway bill printing, updation and generating.
What is The Validity Of e-way Bills?
The validity of e-way Bills lasts for the durations mentioned below. Based on the distance being traversed by the goods, the validity is estimated from the date and time of generation of e-way bill.
There is a provision of extending e-way bill validity as well. The authorized entity is liable to extend validity either four hours before expiry or within four hours after its expiry.
Which Documents or Details Are Needed To Generate eWay Bill?
1. Concerned documents to the consignment of goods are required to generate eWay Bill which includes Invoice/ Bill of Supply/ Challan.
2. If consignment is being transported by road, it requires Transporter ID or Vehicle number.
3. In case of consignment being send through rail, air, or ship, there is a need of Transporter ID, Transport document number and date on the document as well.
FAQs: Frequently Asked Questions
Which Responsibilities a Transporter Posessess in E-Way Bill System?
In case the supplier did not provide e way bill to transporter due to any reason, no matter from which mode of transport the consignment is being transported whether road, air, rail, etc, the transporter requires to generate e way bill based on the information shared from the supplier/ consignors about the invoice/challan. If the transporter do not generate e way bill that’s important to him, there is huge possibility of facing penalty of INR 10,000 or tax sought to be avoided (wherever applicable) whichever is greater. Also, he will be liable for confiscation of goods and vehicle as well.
What Happens if Multiple Consignments Are Transported in One Vehicle?
If multiple consignments are being transported in a single vehicle, the transporter needs to generate a consolidated e-Way Bill through the portal, which includes the serial numbers of each consignment separately. This kind of transport is called the ‘Transshipment’.
What is The Criteria of ‘Value of Consignment of Goods’?
The criteria of ‘Value of Consignment of Goods’ as follows;
1. If invoice value of consignment exceeds INR 50,000, or
2. If multiple consignments is being transported with a conveyance and aggregate invoice value exceeds INR 50,000.
There is a requirement of generating a e-way bill.
Note: Invoice value is the total transaction value including taxes per invoice.
Is e-Way bill required, if the value of consignment per customer per day exceeds INR 50,000? How will multiple invoice be considered under single e-way bill?
The generation of consolidated e-way bill depends on condition whether the supplier is the transporter or not? If yes, the transporter needs to generate e-way bill for all the invoice but if not, the transporter will be required to generate a consolidated e-way bill for all the invoices in the vehicle.
In case of outward supply Sub Type Selection plays a vital role, so what does Sub Type “CKD/SKD” & “Line” mean?
CKD/SKD defines the condition of the good weather in Completely knocked down condition or Semi Knocked Down condition. For example, if the consignment of fans is transported in different parts and will be assembled later when installed. “Line Sales” stands for Vertical sales made from one unit/ department/ division of an organisation to another unit/ department/ division next in production line within that organization.
Gen GST software is one of the most acclaimed solution for all the GST eway bill needs like generation, updation, validation and even cancellation at the end of transporters and the business firms. For further understanding, there is an complete PDF guide of the GST eway bill via Gen GST software version 2.0.
