E-way bills under GST became applicable for inter-state transactions on April 1, 2018, and for all intra-state transactions on June 1, 2018.
What is eWay Bill, and how are you Impacted?
E-way bills are electronic documents that must be carried by anyone in charge of a conveyance transporting items worth more than fifty thousand rupees. The registered people or transporters responsible for the movement of goods on consignment can produce the way Bill from the GST Common Portal before the start of such movement.
A unique E-way bill number (EBN) is generated immediately when an E-way bill is generated. The source, recipient, and transporter all have access to this EBN.
When is the eway Bill issued?
An e-way bill must be provided if the value of the consignment to be transported exceeds Rs. 50,000. A waybill will be issued if products are supplied, returned, or supplies are received from unregistered individuals.
- Associated with supply
- Reasons other than supply (for example, a return)
- Inward’supply’ from an unregistered individual
The supply could be one of the following:
- A supply made in exchange for money in the process of business
- A supply supplied in exchange for a payment that may or may not be made in the course of business.
- A supply made without compensation
As a result, for any type of movement, eWay Bills must be generated on the common portal.
Even if the value of goods is less than Rs. 50,000, a eway bill must be generated for specific designated goods.
- When goods are transported across state lines to the job-worker
- In the instance of inter-state transport of handicraft goods by a GST-exempt dealer
Who can issue an e-way bill?
If both the supply and the receiver are unregistered, the E-way might be given by a registered supply/registered individual, an unregistered individual, or a transporter.
Registered Supplier/ Receiver
A eway Bill must be generated when there is a movement of goods worth more than Rs 50,000. If the value of the items is less than Rs 50,000, a registered individual or the transporter may choose to create and carry an eWay bill.
Unregistered Persons
When an unregistered person makes a supply to a registered person, an e-Way Bill must be generated; in this case, the receiver must guarantee that all compliance requirements are completed.
Transporter
Transporters who transport products by road, air, rail, etc., must also generate an e-Way Bill if the supplier has not developed one.
In which situation is way Bill not required?
A lot of situations do not necessitate the use of an e-way Bill.
- No E-way is necessary when commodities are carried from a port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
- There is no need to file Part B of the eway bill when the distance between the consignor/ consignee and the transporter is less than 10 km, and both parties are in the same state.
- When the mode of transportation is non-motorized.
- When goods are carried under Customs inspection or by sea,
- When products are moved due to defense formation under the Ministry of Defense as a consignor or consignee.
- Eway Bill would not be required for empty cargo containers.
How can you register on the eWay bill system?
You can access the e-way bill portal, www.ewaybill.nic.in, dedicated to issuing e-way bills. To do so, a user must enroll in the site using his GSTIN number.
Why is the e-way bill required?
E-way bills are necessary to ship products worth more than Rs. 50,000 and promise to enable speedier movement of commodities through a streamlined portal-driven payment system.
What documentation must be given to the transporter during goods transit?
The Tax invoice/bill of supply/delivery challan and eway bill copy must be given to the transporter during the Goods transit.
How many components make up an eWay bill?
An E-way bill is divided into two parts: Part A and Part B. Part A should include information on the consignor/ consignee and the items, whereas Part B should consist of information about the carrier and the vehicle.
What is the validity of the eWay bill?
When the distance is less than 100 kilometers, the e-way bill is valid for one day. Each additional 100 kilometers or portion thereof increases validity by one day. If the distance is 635 km, the validity period is seven days; if the distance is 356 km, the validity period is four days.
E-Way Bill Registration
The e-way bill is available to three sorts of taxpayers. Registered suppliers, registered or unregistered transporters, and unregistered suppliers are among them. The registration process for taxpayers and registered transporters is outlined below.
Step 1: Navigate to https://ewaybillgst.gov.in to access the e-way bill gateway.
Step 2: Hover your cursor over ‘Registration’ at the top of the page. A drop-down menu will appear, from which you must choose ‘e-Way Bill Registration.’
Step 3: On the new screen, enter your GST Identification Number, input the captcha code, and click ‘Go’.
Step 4: You will be sent to a new page where you must generate and validate a One-Time Password.
Step 5: On this screen, your GSTIN, name, trade name, and address will be auto-populated. After double-checking the information and determining it is correct, click the ‘Send OTP’ button. The OTP must be input and verified by clicking the ‘Verify OTP’ button.
Step 6: You’ll be taken to a new page where you can establish a unique user ID and password.
How to log into E – E-Waybill System
Taxpayers can connect to the eway portal after registering with a user ID and password.
Step 1: Visit https://www.ewaybillgst.gov.in/Login.aspx to log in.
Step 2: Enter your User ID and Password. If a user forgets his login credentials, he can click on ‘Forgot User ID’/’Forgot TransID’/’Forgot Password’.
Step 3: Enter valid Captcha information and click Log in.
E-Way Bill Validity
The following table details the validity of an e-Way bill:
The validity period begins with the generation of the E-Way bill. The commissioner may grant an extension of the validity period for the transfer of certain commodities. The notification will include information on the extension.
The E-Way’s validity for over-dimensional freight is listed in the table below:
E-Way Bill Exemptions
The following are the situations in which an E-Way bill is not required:
- A non-motorized vehicle is used to convey items.
- If the goods being transported, bear a customs seal and were transported under customs control.
- In the case of transit freight moving to or from Bhutan or Nepal.
- If the cargo containers being transported are not complete.
- No E-Way bill is required if the consignor is the State Government, the Central Government, or a local government, and the items are carried by rail.
- When commodities are transferred for customs clearance from airports, ports, land customs stations, or air cargo to a Container Freight Station or an Inland Container Depot.
- If the items have a customs seal and are carried from another customs station to a customs station or from an Inland Container Depot to a customs port.
- Suppose the consignor transfers products from a business location to the location where the goods must be weighed and vice versa. The maximum distance, however, must be 20 kilometers, and the delivery challan must be carried.
- If the GST laws for the Union Territory say that the items being carried do not require an E-Way bill.
E-Way Bill Rules
Since the adoption of e-way bills in India in April 2018, the number of goods transactions between states in India has surged dramatically. India’s states and union territories have also expressed interest in generating e-way bills.
People have also received financial rewards if the threshold limit for particular things falls below a certain level. For example, Tamil Nadu excused the generation of e-way bills if the threshold amount fell below Rs.1 lakh.
E-Way Bill Format
Part A and Part B of the e-way Bill are separate documents. Part A contains information on the invoice. Below information must provided:
- The number of the transport paperwork.
- Details on why the transportation is being provided.
- The HSN code must be specified. The HSN code that must be provided will vary depending on the turnover.
- Consignment price.
- The challan number.
- Pin code (the location where the items will be delivered).
- GSTIN of the beneficiary.
Status of Implementation of eWay Bill in India
Since the adoption of eWay bills in India in April 2018, the volume of goods transactions across states in India has surged dramatically. India’s states and union territories have also expressed interest in issuing eWay invoices. People have also received financial rewards if the threshold limit for particular things falls below a certain level. Tamil Nadu, for example, excused the generation of eWay bills if the threshold amount was less than Rs.1 lakh.
Penalty in case E-Way Bill is not Generated
If an E-Way bill is not created, a penalty of Rs.10,000 may be imposed. Aside from the punishment, the vehicle transporting the commodities and the goods themselves may be detained or seized.
When should I extend the E-Way Bill’s validity?
If the consignment does not arrive at its destination due to one of the following circumstances, the validity of the E-Way Bill can be extended:
- Delay in transshipment
- Accidental transportation
- Issues of law and order during transportation
- Natural disaster
- In case there is any delay due to a breakdown
Wrapping It Up
E-way bills, e-invoicing, and GST are vital in today’s corporate sector because they are mandated by the government. To stay ahead in business, a proper solution that meets all of the criteria of current business scenarios and requirements is essential.
FAQs
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What is an e-way bill?
Electronic Way Bill (E-Way Bill) is essentially a compliance mechanism in which the person causing the movement of goods uploads the appropriate information prior to the start of the movement of goods and generates an e-way bill on the GST portal via a digital interface.
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Is the eWay bill required?
If the value of the goods being transported exceeds Rs. 50,000, an e-Way bill must be generated.
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Who is responsible for paying the eWay bill?
A person in charge of the conveyance is needed to carry an e-way bill.
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What is the difference between an invoice and an eWay bill?
While an E-Invoice records transaction and tax information, an E-Way Bill is necessary when the value exceeds Rs. 50,000.
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What is the km limit for an e-way bill?
400 kilometers
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What are the drawbacks of the EWAY bill?
The bill extension generates numerous waybill numbers from a single dispatch or invoice.
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What exactly is URP in an e-way Bill?
Unregistered Person is abbreviated as URP. If one party is unregistered, you must include URP in the e-way bill.
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What if I don’t get the OTP on my registered cellphone number while producing the e-way bill?
If you do not receive the OTP on my registered mobile number, you can obtain it using your registered email address.
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What is the distinction between an invoice and an eWay bill?
While an E-Invoice records transactions and tax information, an E-Way Bill is necessary when the value exceeds Rs. 50,000.
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Can we produce an EWAY charge after the product has been delivered?
Before items can be transported by road, an e-way bill must be issued. That is, the moment the E-Way charge is generated is unrelated to the invoice date. As a result, the E-way bill can be created after the invoice date.
