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E-way bill for the electronic e-way bill is a compliance mechanism that controls the movement of goods. With the help of a digital interface the person who initiates the movement of the goods generates an e-way bill on the GST portal by uploading the relevant information. The generation of e way bills is done before the commencement of the movement of the goods.
When a person generates an e-way bill the portal gives a unique E-way Bill Number or EBN allocated to him which is readily available with the supplier, transporter and recipient.
The Goods and Service Tax (GST) is a new law and several complications are in its way. The introduction of the e-way Bill mechanism was made to ensure that the movement of goods can be done without any hassle throughout the country. It acts as an effective tool to track the movement of goods which reduces dummy invoices, controlling tax evasion in the country.
The e-way bill system is applicable for both interstate and intrastate transport or supply of goods. In the case of Intra State movement of goods, it can be deferred by the respective state as per GST rules.
The applicability of this system specifies as follows: For supply, a movement of goods in a vehicle or conveyance having a value of more than ₹ 50000 requires the person to generate an e-way bill.
For the purpose of the e-way Bill mechanism the definition of supply as per the CGST Act, 2017 includes
Also Read: GST Explained for Everyone
According to CGST rules,
E-way bill has been bifurcated into two parts namely, Part A and Part B and the details are furnished in FORM GSTEWB-01:
Form GSTEWB-02 is used to produce a consolidated e-way bill when the transporter is transporting multiple consignments using a single conveyance or vehicle. Prerequisite of generating a consolidated e-way bill that the transporter must have all the individual e-way bills of the goods. The consolidated one can be generated by providing the e-way bill numbers of each consignment. Also Read: GST Invoice – Learn about GST Invoice Rules & Bill Format
The validity period is as follows:
|Type of cargo||Distance||Validity period|
Cargo other than over dimensional cargo on multimodal shipment in which at least one leg involves transport by ship
|Up to 100 km||One day|
|Cargo other than over dimensional cargo on multimodal shipment in which at least one leg involves transport by ship||For every 100 kilometres or part thereafter||One additional day|
|Over dimensional cargo on multimodal shipment in which at least one leg involves transport by ship||Up to 20 kilometre||One day|
|Over dimensional cargo on multimodal shipment in which at least one leg involves transport by ship||For every 20 km and part thereof||One additional day|
According to the latest notification, the validity of the e-way bill may be extended within 8 hours from the time of its expiry.Therefore, the validity period of the consolidated e-way bill cannot be ascertained. The validity period shall be taken as per the individual consignment validity period and the consignment should reach the destination as per the validity period of the individual consignment.
However, it has been clarified by a press release that the validity period of any variable shall start only after the details in part B of the form GSTEWB-01 are updated by the transporter for the first time.
An e-way bill is not compulsory to be generated in case of the following
A person in charge of a conveyance must carry the following:
The second point shall not apply in case of movement of goods by rail or by air or vessel.
According to CGST rules, when goods are transported for less than a distance of 50 kilometres for intra-state supply from the place of business of the originator to the Transporter for further transportation, the supplier or the recipient or the Transporter, whoever is not required to furnish the details of the transport in part B of Form GSTEWB-01.
The information of the e-way bill shall be communicated to the supplier or the recipient if registered and such supplier or recipient shall also inform his acceptance or rejection of the goods as mentioned in the e-way bill.
In case if supplier or the recipient does not inform the acceptance or rejection in a period of less than 72 hours or before the delivery of the goods to such place, whichever is earlier, it shall be assumed to be accepted by such supplier on recipient.
E-way bill can be cancelled after its generation only when goods are either not conveyed or not conveyed as per the details given in the e-way bill. it can be cancelled electronically on the common portal either directly or through a facilitation centre notified by the commissioner. The time period of cancellation is within 24 hours of generation of an e-way bill. An e-way bill cannot be cancelled if the same has been verified in transit by the authorities.
There are legal consequences for non-compliance with the e-way bill. In cases where an e-way bill is a required document but these are not issued in accordance with the rules and provisions specified, the same will be treated as contravention of the rules and non-compliance shall apply as follows:
A taxable person who transports any taxable goods without an E-way bill shall be liable to a penalty of Rs. 10000 or tax sought to be evaded whichever is greater.
Where any person transports in goods or stores any goods which contravenes the provisions of the Act or the rules, such goods shall be liable to detention or seizure along with the conveyance used as a means of transporting the said goods.
In cases where a consignment is required to be shipped which involves multiple transporters that are having different Transporter IDs. It is known as trans-shipment. The consignor or the recipient has furnished the details in Part A of form GSTEWB-01, the Transporter will assign the e-way bill number to another registered transporter for updating the information in part B of the same form for the movements of the consignment. Once, reassigned by the transported to another Transporter, the seller cannot make any changes for that particular assigned Transporter. Hence the user has to generate different delivery challans for different Transporter ID and not e-way bills because different e-way bills against a single consignment will create problems in entering data for GSTR-1.
E-way bills can be generated online through the GST portal dedicated for e-way bill generation and it can also be done via SMS. A person who requires to generate a single e-waybill or users who do not have the facility to access the website are given the facility of using SMS for generating an e-way bill.
It is helpful at the time of urgency and for small businesses. Not only generation but the modification, update and deletion of an e-way bill can be done with the use of SMS facility.
Place of dispatch shall be the address of the place from where the goods are dispatched for the movement to the recipient.
Bill to shall include the details of the party on whose options the goods are being transported on the place of Ship to.
Ship to the place where the goods are to be disposed of at the will of the registered person who is a Ship to party.
Therefore an E-way bill helps in smooth transportation and tracking of goods on the E-Way Bill System. The procedures for generating an E-Way Bill are easy for even small businesses.Business should use it to follow the law and help in smooth movement of goods.
If invoices are raised for both goods and services, will the consignment value include the invoice value or the value of goods?
The consignment value shall be taken only for goods and not for services. Furthermore, HSN code is used to determine only goods.
What shall be done in case of transporting expired stock?
In such cases, there are no invoices but a delivery challan is raised. Hence delivery challan shall be used to generate e-way bills in case of transporting expired stock.
Who shall generate EWB generation in case DTA sales from SEZ/FTWZ?
The person who initiated the movement must be a registered person and shall generate the e-way bill.
Can a vehicle with a temporary number be used to transport and generate e-way bills?
Yes, a vehicle with a temporary number can be used.
Are e-way bills required for empty cargo containers?
No, for empty cargo containers e-way bills are exempted.
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