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, it can be canceled within 24 hours of being developed.
Advantages of e-way bill and its implementation
Less Documentation
A of state-specific documentation would no longer be required for commodities transportation. The RGID device in the vehicle delivering consignments regularly is another benefit offered to transporters. 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, the proportion of logistics costs to GDP is predicted to fall, which is now 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, it is possible for dealers to self-generate e-way bills, and it is considered no big task these days. In the days to come, the process is expected to get more straightforward so that even laymen can generate an e-way bill 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, was affected by these bottlenecks and struggled to adapt and adjust to the new methods. 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 e-way bill portal’s proposed daily capacity of 75 lakh waybills, companies are concerned that as additional states are brought under the intra-state e-way bill, the system will not have much 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 e-way bill’s validity time is determined by the distance covered by the products transported based on 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 is broken into two sections: Part A contains information on the products being transported, whereas Part B includes information on the vehicle transporting the commodities.
- Consolidated e-way bill: When many consignments are conveyed in a single conveyance, the Transporter can generate a consolidated e-waybill that includes all of the details of the e-waybill.
- Updating and Cancellation: The e-way bill can be updated if the details of the transported items change or if the vehicle number changes due to a vehicle breakdown or being struck by natural disasters such as floods, landslides, etc.
- Cancellation of e-waybill: The e-way bill can also be canceled if the items are not carried out for reasons beyond the supplier’s control, and it is feasible to cancel within 24 hours of the generated 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.
- E-way bills can be generated using a variety of methods.
When is the E-Way Bill unnecessary?
- When traveling in a non-motorized vehicle.
- If the products being carried have been customs-approved or stamped. 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 is an e-way bill required 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 products are transported from a principal in one state to a job worker in another, the principal must generate the e-way bill regardless of the value of the consignment.
Handicrafts interstate transfer (by person exempt from GST registration)
Regardless of the value of the consignment, a waybill must be generated whenever handcrafted goods are transported. These 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?
Form GST EWB-01 can generate an e-way bill when items are transported 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 is divided 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, creases in the system must be ironed out 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?
GST E-way bill is a document introduced under the Items and Services Tax to trace items in transit.
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What is the function of a waybill?
A waybill is a receipt or document provided by a carrier that contains information and instructions on the shipment of a consignment of goods. 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?
An e-Way bill must be generated 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?
If the worth of the items exceeds Rs. 50,000/-, an e-way bill must be carried along with them during transit, according to the guidelines.
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Who is responsible for paying the e-way bill?
The e-way bill is a document that must be carried by anyone in charge of a conveyance transporting any consignment of goods valued more than 50,000 rupees, 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 is determined by the approximate distance between the supplier’s location and the recipient’s location, not by the distance between the Transporter’s position 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. To transport items from one location to another, the E-Way Bill is required.
