E-Way Bill Under GST In Uttar Pradesh
An e-way bill is a mandatory document that a transporter must carry while transporting goods inter or intrastate, if the value of the goods exceeds ₹50,000. The implementation of e-way bills started in a phased manner at the beginning of FY18-19. Since UP was one of the earliest states to adopt the e-way bill system, there was no well established framework for them to follow while implementing it. This led to a lot of confusion among suppliers and transporters, who were used to the earlier system of waybills and found the transition difficult.
In this article, we will discuss the e-way bill rules in Uttar Pradesh. After reading it, you should have a clear understanding of the applicable laws regarding generating and carrying e-way bills when moving goods inside or outside the state. For easy reading, we will abbreviate Uttar Pradesh to UP from this point on.
BOOK A FREE DEMO
What was the System before GST was introduced?
Before GST was introduced, the UP government followed the UPVAT system, where waybills were used for both inter and intra state transport of goods.
The E-Sancharan certificate (Forms 38 and 39) was a declaration submitted to the VAT officer by VAT Registered Dealers. For any vehicle coming into UP from another state, the person-in-charge of the vehicle was required to carry a trip sheet and a duplicate copy of Form 38 of the E-Sancharan certificate.
If the buyer of the goods – who is located in UP – was not a VAT registered dealer, it was his responsibility to get Form 39 of the certificate from the Assistance Commissioner and send the signed copy of it to the seller, so the person-in-charge of the conveyance is able to produce the certificate when required to do so. However, there was no need for the E-Sancharan certificate when the goods were being moved within UP.
What Happened Between Scrapping the VAT System and Implementing E-Way Bill in UP?
A modified version of E-Sancharan was temporarily in use until the e-way bill system was launched in a phased manner by the Centre on 1st April 2018.
Under the temporary modified system, the following documents had been prescribed by the commercial tax department of UP:
- TDF – Transit Declaration form (ePargaman prapatra) is required where goods have arrived in UP from another state, but the conveyance is merely passing through UP enroute to another state. UP is not the final destination.
- Import Declaration Form (E-Way Bill-01) is required when heavy vehicles carry goods that have been brought from another state into UP for delivery.
- Transport Memo (E-Way Bill-02) is required for interstate movement of goods where the origin is UP, or when the movement is between two cities that are both in UP.
- E-Way Bill-03 declaration form is required for intrastate transport by e-commerce operators
What is the Current System of E-Way Bills in UP?
The current system in UP is the same as that in the rest of the country.
E-Way bills are required when transporting consignments worth Rs. 50,000 or more within or outside state borders. However, e-way bills are applicable only to taxable goods being transported from one place to another. Transporters must carry either a digital or physical copy of the e-way bill during transport. The process has been designed to minimise the time taken at checkpoints for transit forms to be checked with the system entry, making it less time-consuming and more convenient for transporters. The digital approach also helps in better tracking of movement and better detection of tax evasion by the authorities.
Generating e-way bills is only possible once you have registered under GST, since you will need to enter your GSTIN when creating an e-way bill. Once registered, it is essential to learn the process of generating an e-way bill.To generate e-way bills seamlessly without breaking your workflow to go to the GST Portal, try BUSY E-Way Bill Software. After a one time setup, you can generate single as well as multiple e-way bills in seconds. In just a few clicks, BUSY lets you generate e-way bills automatically as and when required.
Conclusion
Implementing the e-way bill system under GST in Kerala has streamlined the transportation of goods within the state. The system ensures greater transparency and accountability, reduces tax evasion, and eases business compliance procedures.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions
- If a transporter subcontracts with another transporter while a goods vehicle travels through UP, is a new TDF-1 required?No transporter may add a sub-transporter beneath him by selecting the “Add transporter” option. To add a transporter beneath him on the same vehicle number, the User can provide the necessary transporter data under this.
- Is it necessary to produce a new TDF if the vehicle carrying the goods changes?No, for a certain TDF declaring the Goods in Transit, there is an option to “change transit vehicles.” In the event of an accident or if the vehicle breaks down after entering the UP, a replacement transport vehicle assumes responsibility. In these situations, a user must alter the car, which necessitates changing the vehicle’s information in the programme.
- Does the User have to take a distinct route specified in the TDF generated, or is there flexibility?Yes. A TDF-1 and a TDF-2 contain a declaration option on the form for the Entry location and Exit location, respectively. There are 37 alternatives to choose from here. In the “Others” box of TDF-1, users can insert any other Entry site they like. In TDF-2, a user is required to indicate the Destination State.
- Should users only send SMS using their registered mobile number when creating TDFs through SMS?No, to manage TDF-1 or TDF-2, the User (taxpayer), transporter, owner of the vehicle, or driver declared in the form may send an SMS to 9235512608.
- For goods in transit, can the User generate a new TDF-1 to replace the old one?No, before generating a new TDF-1 for the same vehicle movement, the User must first create the TDF-2 against the TDF-1 developed for a specific entry of a goods vehicle into UP.
- Are TDFs or e-way bills in EWB-01, 02, or 03 necessary for every shipment of goods?No, all that is required for the items specified in Section 50 of the State VAT Act of Uttar Pradesh is the formation of TDFs.
- When should UP residents use the NIC portal to create E-way bills?UP residents who export products outside the State must register once on the e-way bill NIC site and begin creating e-way bills on April 1, 2018. People can only develop e-way bills for the movement of commodities inside the State of UP if the State of UP announces intra-state implementation in its official gazette.
Starting on April 15, 2018, Uttar Pradesh, Kerala, Telangana, Gujarat, and Andhra Pradesh will implement e-way bills within their respective states. To facilitate the movement of commodities inside their State, Uttar Pradesh residents must begin to create e-way bills on the shared NIC portal as of April 15.
