Furthermore, experts predict that the proportion of logistics costs to GDP will fall, which is currently relatively high compared to other countries.
Deferment and extension were possibly the most often used terminology during the GST implementation process. The installation of the e-way bill system, after much delay, was one of the most essential components of this tax revolution. It was announced on April 1, 2018, and states were allowed to implement it on any date between April 1 and June 3, 2018.
The term “e-way bill” refers to an electronic waybill, as the acronym denotes. For inter-state or intra-state movement of goods worth more than Rs. 50000, the GST e-way bill is created electronically using the GST system. The e-way bill should be prepared before the shipment of goods and include information about the products being transported, the consignor, the destination, or the Transporter.
The person in charge of the vehicle must carry the tax invoice, delivery challan or bill of supply, bill of entry, as applicable, and the e-way bill or simply the portal number. The details of the e-way bill cannot be changed or corrected once they have been generated. However, you can cancel it within 24 hours of generating it.
Advantages of e-way bill and its implementation
Less Documentation
Transporters will no longer require state-specific documentation for commodity transportation. Transporters benefit from the RGID device in the vehicle that regularly delivers consignments. The driver no longer needs to carry physical copies of the e-way bill because it can now be mapped and confirmed using the RGIC device installed in the vehicle. It helped to eliminate the inconveniences of carrying and storing visible documents.
Cost Reduction
Electronic bills cut logistics costs by supporting appropriate invoicing and preventing tax avoidance. Furthermore, experts predict that the proportion of logistics costs to GDP will fall, as it currently remains relatively high compared to other countries.
Fast and Efficient Transportation
With the introduction of the e-way bill, the entire transportation system has become considerably faster and more efficient. It lowered the “n” number of checkpoints that crossed state lines and national routes. It bridged the gap between the 85000 annual average kilometers traveled by Indian trucks and the 150000 to 250000 kilometers traveled in developed countries.
Simple and quick generation of e-way bill
The generation of e-way bills happens through the government-set online portal. The portal and e-way bill system are, however, straightforward and user-friendly.
With the system, dealers can now self-generate e-way bills, and they no longer find this task difficult. In the future, experts expect the process to become even simpler, enabling even laypeople to generate e-way bills and facilitate the movement of goods.
Disadvantages of e-way bill
Despite these advantages, the adoption of the electronic waybill brought with it several hurdles and problems. The logistics industry, in particular, struggled to adapt to these new methods due to the bottlenecks. Conversely, the government is continuously modifying procedures, rules, and laws to make things easier and more adaptive for dealers and transporters.
Challenges around the extension of the waybill
The bill extension generates numerous waybill numbers from a single dispatch or invoice. This may result in duplication. Furthermore, the time range for the extension, 4 hours before and after the expiry of validity, appears to be limited.
Compliance challenges for multiple daily movements
Businesses with many daily commodities move face a new set of compliance issues. Enterprises require a specific software solution to generate electronic waybills on time. The program should also allow for turnover reconciliation with e-way invoices.
Internet-based system
The electronic waybill system is an internet-based system from start to finish. Creating the e-way bill becomes difficult in places and areas with limited internet access. Furthermore, transporters and dealers have difficulty shipping items due to their unfamiliarity with the internet and technology.
Technical glitch
Despite the proposed daily capacity of 75 lakh waybills for the e-way bill portal, businesses are concerned that as more states implement the intra-state e-way bill, the system might experience minimal downtime.The logistics business faces significant challenges due to technical flaws in the electronic generation of waybills. Because of this, the government had to postpone the implementation of the e-way bill several times.
Features of E-way Bill
- Validity time: The system determines how long the e-way bill is valid based on the distance covered by the transported products, using the pin codes. The current validity is 200 kilometers per day for conventional cars and 20 days for over-dimension freight.
- Parts A and B: The e-way bill breaks into two sections: Part A provides information on the products being transported, and Part B provides information on the vehicle transporting the commodities
- Consolidated e-way bill: When many consignments are convey in a single conveyance, the transporter can generate a consolidated e-way bill that includes all the details of the e-way bills.
- Updating and Cancellation: You can update the e-way bill if the details of the transported items change, or if the vehicle number changes due to a breakdown or natural disasters such as floods, landslides, etc
- Cancellation of e-waybill: You can cancel the e-way bill if you do not transport the items for reasons beyond your control, and you can do so within 24 hours of generating the tax invoice.
- Users can track the generation of e-way bills on their accounts.
- Users will receive changes via email and SMS to their registered email address/mobile number.
- The Transporter or the supplier/recipient of goods who generates the e-way bill can enter/update the vehicle number.
- Each e-way bill will have a QR code that will allow department authorities to scan and view the consignment details.
- You can generate e-way bills using various methods.
When is the E-Way Bill unnecessary?
- When traveling in a non-motorized vehicle.
- If you transport customs-approved or stamped products, you must follow the appropriate process.
- For customs clearance, convey products to an airport, port, or cargo bay, such as Inland Container Depot (ICD) or Container Freight Station (CFS).
- Goods to and from nations such as Nepal and Bhutan.
- The Department of Defense is an acronym for the Department of Defense.
- The container is empty.
- Internal conveyance of products within 20 kilometers of production offices and weighing stations with valid delivery. Products that are exempt from payment under State/UT GST legislation. Goods not included under the GST Regulation’s Addendum to Rule 138(14).
When does one require an e-way bill even if the shipment value is less than Rs 50,000?
In some instances, an e-way bill is created even when the value of the shipment is less than Rs 50,000.
Interstate transfer of Goods for Job Work
When transporting products from a principal in one state to a job worker in another state, the principal must generate the e-way bill, regardless of the consignment’s value.
Handicrafts interstate transfer (by person exempt from GST registration)
Whenever someone transports handcrafted goods, they must generate a waybill, regardless of the value of the consignment. 0These individuals are otherwise exempt from registering under Section 24 of the CGST Act 2017.
Which form needs to be filled out for the generation of the e-way bill, and by whom?
You can generate an e-way bill using Form GST EWB-01 when transporting items by truck.
- The registered person as a consigner or the recipient of the supply as the consignee,
- by whatever mode- in his own conveyance, a hired one, or by rails, air, or sea.
Form GST EWB-01 divides the e-way bill into Part A and Part B.
- Part A of Form GST EWB-01 includes information about invoices, suppliers, receivers, and invoice items with HSN codes and tax rates.
- Part B of Form GST EWB-01 includes transporter information such as manner of transfer, approximate kilometers, Name, Transporter ID, date, and vehicle number.
Please remember that an e-way bill will only be generated if the information in Part B of form GST EWB-01 has been submitted.
Because there are several parties involved, we have outlined who is necessary to fill out which section of Form GST EWB-01 to minimize confusion:
| Goods transport by | Conveyance | Mandatory condition | Form and part |
| As a consignor, a registered person under GST or the recipient of the supply as the consignee (goods not handed over to the Transporter) | Own conveyance or Hired or By railway or By air or By vessel | Before commencement of such movement | GST EWB-01Part B |
| When items are handed over to a transporter for road transportation | Transporter conveyance | Before commencement of such movement | Part A |
| The transporter acting on behalf of the registered dealer (based on information provided by the registered person in Part A) | Transporter of the conveyance | Before commencement of such movement | Part B |
| Unregistered individual (either he or the transporter) | Own conveyance or A hired one or through transporter | Before commencement of movement | GST EWB-01 |
| Unregistered person to registered person (recipient person will comply) | Own conveyance or A hired one or through transporter | Before commencement of movement | GST EWB-01 |
Wrapping It Up
The introduction of e-way bills has resulted in a seamless dilution of inter-state boundaries. The amount of time spent at state borders for document verification and verification was a burden to all businesses. It frequently discouraged individuals from leaving their state. However, things have changed with the new system. Furthermore, the government has worked tirelessly to implement a system that functions properly.
A system that does not disturb the logistics industry’s operations. Despite these painstaking efforts, the authorities must resolve some issues in the system before it can be considered ideal. The administration expects to accomplish this gradually over time.
FAQs
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What is the meaning of the e-way bill?
The electronic way bill is a vital document that allows tax authorities to follow the transportation of goods and verify compliance with GST requirements.
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What are the goals of the e-way bill?
Free circulation of commodities for transporters across the country.
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What exactly is an e-way bill?
The GST E-way bill is a document introduced under the Goods and Services Tax to trace items in transit.
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What is the function of a waybill?
The information includes the name of the consignor and consignee, the point of origin of the shipment, its destination, and route.
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Is the e-way bill required?
You must generate an e-Way bill if the value of the goods being transported exceeds Rs. 50,000.
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Is an e-way bill required for transactions under $50,000?
According to the guidelines, you must carry an e-way bill with the items during transit if their worth exceeds Rs. 50,000.
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Who is responsible for paying the e-way bill?
Anyone in charge of a conveyance transporting a consignment of goods valued at more than 50,000 rupees must carry the e-way bill, as required by the government under section 68 of the Goods and Services Tax Act and rule 138 of the Rules made under it.
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What are the drawbacks of the e-way bill?
The bill extension generates numerous waybill numbers from a single dispatch or invoice.
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What is the legality of an e-way bill?
The validity of an e-way bill depends on the approximate distance between the supplier’s location and the recipient’s location, not the distance between the transporter’s location and the recipient’s location.
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What is the distinction between a GST bill and an e-way bill?
The GST Law demands the issuance of Tax Invoices for all goods and services supplied. You must generate an e-way bill to transport items from one location to another.
