The E-way bill, or Electronic Way Bill, is a crucial document introduced under the Goods and Services Tax (GST) system to track goods in transit. It is mandatory for a taxable person registered under GST, engaged in the transportation of goods valued over Rs. 50,000, to possess an E-way bill generated through the GST Portal. It ensures seamless monitoring and regulation of the movement of goods, facilitating compliance with GST regulations. Let’s take a look at some other crucial details.
The E-Way Bill, also known as the Electronic Way Bill, is a digital document generated on the Portal for the movement of goods. It is mandatory for a GST registered person to obtain an e-way bill when transporting goods in a vehicle with a value exceeding Rs. 50,000 (for a single invoice, bill, or delivery challan).
It can be generated or cancelled through various methods, including the E-Way Bill Portal, SMS, Android App, or site-to-site integration using API. It is important to enter the correct GSTIN (Goods and Services Tax Identification Number) of the parties involved and validate the GSTIN using the GST search tool before using it for generating the e-way bill.
Once the bill is generated, it is assigned a unique E-way Bill Number (EBN), which is accessible to the supplier, recipient, and transporter of the goods. The EBN serves as a reference for tracking and monitoring the movement of goods during transportation.
It is required to be generated when goods are being transported in a vehicle or conveyance with a value exceeding Rs. 50,000. This threshold can be reached either for each individual invoice or as an aggregate value of all the invoices in the vehicle or conveyance.
For this purpose, a supply can be classified into the following categories:
In order to facilitate these types of movements, it is mandatory to generate E-way Bills on the common portal. Furthermore, for certain specified goods, the eWay bill must be generated regardless of the consignment value being below Rs. 50,000:
Given below is who needs to generate an E-way Bill according to the rules and regulations of Goods and Services Tax in India:
Given below are some of the cases where it is not mandatory to generate E-way Bill:
Please note that if the distance between the consigner or consignee and the transporter is less than 50 kilometres, and the transportation is within the same state, Part B of the Bill is not required to be filled.
Since its implementation on April 1, 2018, the inter-state movement of goods has witnessed a significant increase in the generation of e-Way Bills. The bill system has been successfully implemented across all states and union territories, with positive responses from businesses.
However, certain states have provided reliefs to their residents by exempting them from generating bills for certain specified items or if the transaction value falls below a threshold amount. For example, Tamil Nadu exempts the generation of bills for items below Rs. One Lakh. To learn more about such reliefs in different states and union territories, you can visit our page on state-wise rules and threshold limits or refer to the respective commercial tax websites of each state or union territory.
In the realm of modern logistics and Goods and Services Tax (GST), the electronic waybill, or e-way bill, plays a vital role in ensuring the seamless movement of goods. Compliance with e-way bill regulations is crucial to avoid penalties that could impact business operations. Here are the penalties, providing businesses with essential insights to navigate this aspect of goods transportation and GST compliance.
Penalties related to e-way bills are designed to enforce adherence to regulations and promote compliance. Violations or non-compliance with rules can result in penalties that range from monetary fines to confiscation of goods.
Several types of penalties can be levied for various e-way bill-related violations. Here are some common scenarios and their associated penalties:
To avoid e-way bill penalties, businesses can adopt the following strategies:
Penalties associated with e-way bills underscore the importance of compliance in the modern logistics and GST landscape. By understanding the types of penalties, adhering to rules, and maintaining accurate documentation, businesses can ensure the seamless movement of goods while avoiding unnecessary financial setbacks. As the GST framework continues to evolve and logistics practices advance, a proactive approach to e-way bill compliance remains integral to efficient goods transportation and successful GST management.
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