Complete Guide to E-Way Bills Under GST in India
Complete Guide to E-Way Bills Under GST in India

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Date: 17 Aug 2022


Complete guide to E-way Bills

Under Section 68 of the CGST Act of 2017 and Rule 138 of the CGST Rules of 2017, an E-way bill must be generated before transporting goods. This article will lay out a roadmap for understanding E-way bills in more detail.

What is an E-way bill?

The electronic way of generating a bill is referred to as the e-way bill. A Goods and Service Tax (GST) E-way bill is a form used to record the transport of goods. A GST-registered taxable person who transports goods valued at more than Rs. 50,000 must have an E-way bill created on the GST Portal. With the touch of a button, e-way bills can be automatically generated and shared with customers or suppliers.

When to generate an E-way bill?

The E-way bills can be generated under the following situations:

  • If the value of the products is greater than or equivalent to 50,000/-, or voluntarily if the value is less than 50,000/-.

  • If the principal moves the items across state borders to the employee.

  • If there is an interstate transfer of handcrafted goods.

Who should generate an E-way bill?

The following situations necessitate the generation of an E-way bill by a person who has a GST registration and is undertaking transportation of goods:

  • E-way bills are generated when products are moved to or from a registered individual for more than Rs. 50,000. If the value of the products is less than Rs. 50,000, the registered person can even produce an E-way bill.

  • A person who is not registered must additionally produce an E-way bill. The receiver is responsible for ensuring that all requirements are met when an unregistered person supplies goods or services to a registered person.

  • If the provider has not produced an E-way Bill, the transporter must do so to move the products by land, air, rail, etc.

Documents required to generate an E-way bill

Documents needed to generate an e-way bill are:

  • Relevant invoice, bill of supply, or challan for the shipment of goods.

  • If a mode of road transport is involved, the vehicle number or the transporter ID.

  • Transporter ID, Transport document number, and date—whether by ship, rail, or air.

Format of E-way bill

The E-way bill is divided into Parts A and B. The information pertaining to consignment, often the invoice details, is gathered in Part A of the E-way bill. As a result, the following data must be provided:

  • The recipient's GSTIN.

  • The delivery location's Pin code.

  • The number from the invoice or challan against which the goods were supplied.

  • The consignment value.

  • The HSN code for the transported items should be included. The first two digits of the HSN code should be mentioned if the turnover is up to INR 5 crores. A four-digit HSN code is necessary if the turnover exceeds INR 5 crores.

  • The requirement for transportation should be identified in advance, and the best justification should be chosen.

  • It is necessary to mention the transport document number. It contains the airway bill number, the railway receipt number, and the goods receipt number.

How to generate an E-way bill?

According to GST Council regulations, any supplier or transporter delivering goods worth more than Rs. 50,000 (single invoice/bill/delivery challan) in a single vehicle must carry a GST e-way bill. To get a GST e-way bill, the supplier or the transporter of the goods must register with the GST.

The portal produces a distinct E-Way Bill Number (EBN). It allots it to the registered supplier, receiver, and transporter after the E-Way bill has been generated using the necessary credentials on the portal.

The following methods are available to the supplier or the carrier for creating the E-way bill:

  1. Software by Busy Accounting Software,

  2. E-billing portal,

  3. SMS,

  4. The Android application,

  5. Integration from Site to Site (through API).

The GST E-Way Portal allows for the creation of e-way bills. You must be registered as a transporter and under GST to utilise the platform.

  1. Go to https://ewaybill.nic.in/, access the E-way bill generation page, and enter your login information to access the platform.

  2. Select "Generate New" from the E-way bill-Main menu page to produce a new E-Way bill.

  3. A new form for creating EWB bills appears. If you are the supplier, choose outward; if you are the recipient, choose inward. Where applicable, include the GSTIN and the supplier and recipient's information. Other information is added to the blank fields in the form when a registered GSTIN is submitted.

  4. Information to be filled out in the second half of the page is as follows:

    1. The product name and description.

    2. The product's HSN code. 

    3. Product quantity and unit.

    4. The cost of the goods and the tax rate.

    5. Rates of CGST or IGST are applicable. For intra-state transportation, SGST/CGST would apply, whereas IGST would apply for interstate transport.

    6. The approximate distance of the transport as well as the transporter's name and ID. This will establish whether the E-Way bill is valid.

  5. After providing all the required information, click "SUBMIT" to produce the e-way bill. The E-Way bill with the e-way bill number and the QR Code, including all the information in digital form, will be shown on the portal. The printed copy of the invoice should be given to the transporter, who will keep it with them the entire journey till they deliver it to the consignee.

  6. Once it has been generated, an e-way bill can be updated. As long as the e-way bill is not past due, information on the transporter, consignment, consignor and GSTIN of both parties may be updated.

Validity of an E-way bill

An e-way bill's validity is determined by its generated date and time. Based on the distance the items have travelled, an e-way bill is valid for the duration specified below

  1. If the type of conveyance is other than over-dimensional cargo and the distance is-

    1. Less than 200 km, the e-way bill will be valid for one day

    2. For every additional 200 km or part there forth, the e-way bill will be valid for an additional one day.

  2. If the type of conveyance is for over-dimensional cargo and the distance is-

    1. Less than 20 km, the e-way bill will be valid for one day

    2. For every additional 20kms or part there forth, the e-way bill will be valid for an additional one day. 

The validity of an e-way bill may also be extended. To extend the validity of an e-way bill, the generator must do so either eight hours before or eight hours after the bill's expiration.

Situations when an E-way bill is exempted

An e-way bill is not required in the following situations:

  • Petroleum gas that has been liquefied for delivery to consumers who fall under the NDEC's non-domestic exempt category;

  • Kerosene sold with a PDS;

  • Postal luggage moved by the Postal Service;

  • Precious or semi-valuable stones, natural or cultured pearls, precious metals, and metals plated with precious metals;

  • Jewellery, goods made of gold or silver, and other items;

  • Currency;

  • Used domestic and personal items;

  • Coral, both worked and unworked

  • E-way bills are not necessary for transporting goods to an inland container depot or a container freight station for customs clearance from a customs port, airport, air cargo complex, or land customs station.

  • E-way bill generation is unnecessary when goods are transported by non-motorized transportation.

  • Alcohol intended for human consumption, petroleum crude, high-speed diesel, petrol, fuel for an aircraft turbine;

  • Under customs bond from an inland container depot or container freight station to a customs port, airport, air cargo complex, and land customs station, or one customs station or customs port to another customs station or customs port;

  • Where certain notifications exempt the transported items from paying taxes;

  • No E-way bill is necessary when Central Government, State Government, or a local government acting as a consignor transports goods by rail.

  • There is no need for an E-way bill where a defence formation acting on behalf of the Ministry of Defense is the consignor or consignee.

  • In the case of transporting empty freight containers, no E-way bill is necessary.

  • E-way bill generation is unnecessary when items are being transported for weighing, and the distance between the consignor's business and the weighbridge is less than 20 km. However, a delivery challan is required to be present while moving items.

  • Other than for the transportation of de-oiled cake, the items listed in the schedule annexe to Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 do not require the generation of an e-way bill.

Implementation of E-way bill across India

Since its implementation started on 1 April 2018, there has been an increase in the production of e-way invoices for interstate-transit commodities. With all States and Union Territories joining the league in the generation of e-way bills for the movement of products inside the State/UT, the state-by-state deployment of the e-way bill system has had a good response.

However, several states have given their citizens respite by exempting them from the creation of e-way bills if their financial constraints fall below a threshold amount or in the case of specific designated things. For instance, Tamil Nadu has exempted its residents from generating e-way bills if the item's price is less than Rs. 1 lakh.

Conclusion

Thus, e-way bills are a technique to track the flow of products, prevent tax evasion, and guarantee that commodities being transported adhere to the GST Law. Since the advent of e-way bills, documenting transactions has become more streamlined.

Users needn't be familiar with accounting before using Busy Accounting Software. It is adaptable to the diverse needs of the different organisations and includes built-in GSP tools to quickly generate important documents like e-invoices, e-way bills, GSTR-2A, etc.