E-way Bill under GST Regime

understanding-eway-bill-under-gst-regime

As per a new rule under Goods and Services Tax (GST), transporters will need to carry an electronic waybill or E-Way Bill when moving goods from one place to another. It is mandatory for all consignors/consignees/transporters to be aware of the required compliance.

Any goods more than Rs. 50,000 in value to be pre-registered online before it can be moved. As per an official, the government is working on a centralized software platform. Once it is ready the new rule will kick in from October.

Let’s elaborate to understand what exactly is an e-way bill?

E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A registered person without an e-way bill can’t make any movement of goods of more than Rs 50,000 in value. This bill will also be allowed to be generated or cancelled through SMS.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

When should an e-way bill be generated?

E-way bill will be generated when there is movement of goods –

  • In relation to a ‘supply’
  • For reasons other than a ‘supply’ ( say a return)
  • Due to inward ‘supply’ from an unregistered person

What is a ‘supply’ in case of an e-way bill?

In simpler terms, the term ‘supply’ usually means:

  1. Sale – sale of goods and payment made
  2. Transfer – branch transfers for instance
  3. Barter/Exchange – where the payment is by goods instead of in money

Therefore, e-way bills must be generated on the common portal for all these types of movements.

Who can generate an e-way bill?

  • A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered persons or their transporters may also choose to generate an e-way bill. This means than an e-way bill can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliance are met as if they were the supplier. 
People who have rights to Generate an E-Way Bill
Who When Part Form
Every Registered person under GST Before movement of goods Fill Part A Form GST EWB-01
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods Before movement of goods Fill Part B Form GST EWB-01
Registered person is consignor or consignee  and goods are handed over to transporter of goods Before movement of goods Fill Part B  The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods Before movement of goods  Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered Compliance to be done by Recipient as if he is the Supplier.

 1. If the goods are transported for a distance of ten kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient

Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not created an e-way bill, then the transporter can do so by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.

Can e-way bills be used during return filing?

Yes, the information provided in Part A of the Form GST EWB-01 can be used for preparing GST Return-1.

What is the validity of an e-way bill?

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill.

Distance Valid from Valid for
Up to 100km Date & time at which e-way bill is generated. 1 day
For every 100 km after that Date & time at which e-way bill is generated. An extra day

 

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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Comment

  1. Superb explanation covering top, bottom, left and right of E Way Bill.
    As the E Way Bill topic is currently trending and lot of people are looking for more and clearer information about this topic. This article is quite helpful in educating people.
    Great.

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