E-Way Bill under GST

E-Way Bill under GST

Transporters should carry an E-Way Bill, while transporting goods from one place to another by complying certain conditions. In this article, we have covered the following topics-

 

 

Briefly explain the concept of an E-Way Bill?

E-Way bill stands for Electronic-Way bill. It is a document introduced under GST Law, that needs to be generated before transporting or shipping of goods whose value exceeds Rs. 50,000 within state or inter-state. The physical copy of the bill must be present with the transporter or the person in charge of the conveyance and information such as Recipient, Goods, Consignor and Transporter should be included.

The Bill is generated from the GST Common Portal under E-Way bill system by the registered persons or transporters who cause movement of goods of consignment. When the bill is generated, a unique E-way Bill Number (EBN) is allocated and is available to the Supplier, Recipient, and the transporter.

 

What are the contents of an E-Way Bill?

An E-way bill i.e. Form GST EWB-01 is divided into 2 main components-

Part A of bill contains invoice-related information-

  • Invoice or Challan or Document number and date of Issue
  • GSTN of supplier & recipient
  • PIN code of the place of dispatch and delivery
  • Description & Value of goods
  • HSN Code
  • Transportation Details (such as Transporter Name & ID, Approximate Distance in km)

Part B includes Transport-related details-

  • Mode of Transport i.e. by Road, Rail, Air or Ship
  • Transporter document number** & date of transport
  • Vehicle number

 

**Transporter document number-

Road – Goods Receipt Number

Rail – Railway Receipt Number

Air – Airway Bill Number

Ship – Bill of Lading Number

Below is the format of E-way bill-

E-Way Bill under GST

 

When should the E-way Bill be issued?

E-way bill is generated before the movement of goods in a vehicle or conveyance for the value of goods more than Rs. 50,000. It may be either a single invoice or the aggregate of all invoices in a vehicle. Whether the reason is-

  • In relation to a
  • Other than a supply i.e. a return.
  • Due to an inward supply from an unregistered person.

 

Who should Issue an E-way bill?

  • Registered Persons – E-way bill shall be generated before the movement of goods of value more than Rs 50,000 to or from the registered person. The Registered person or the transporter may choose to issue and carry E-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered Persons – They are also required to generate E-Way Bill. However, in case where the supply is made through an unregistered person to a registered person, the recipient of the goods will have to ensure all the compliances are done, as if they were the supplier.
  • Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

 

When E-way Bill is not required?

Following are the cases where E-way bill is not required to be generated-

  • Where the mode of transportation is Non-Motor Vehicle
  • Cargo transported from or to Nepal or Bhutan
  • Moment of goods by Defence under Ministry of Defence
  • Transportation of empty Cargo containers
  • In case where Consignor of goods is the Central or State Government or a Local Authority & the goods are transported by rail.
  • Goods transported-
  • To Inland Container Depot (ICD) or Container Freight Station (CFS) from Custom port, Airport, Air Cargo Complex or land custom stations.
  • Under Custom seals or under the supervision of Custom.
  • Under Custom Bonds from ICD to Custom Port or from one custom station to another.
  • Goods specified as exempted from the requirements of E-way bill.

 

What is the validity of E-way Bill?

Validity of E-way Bill is based on the distance travelled by the goods. Validity of E-way bill can also be extended. Such E-way can be extended either four hours before expiry or within four hours after its expiry. The E-way bill is valid for the periods as mentioned below-

 

Type of Freight / Cargo

Distance

Validity Period

Normal Cargo

Up to 100 km

1 Day

For every additional 100 km or part thereof

1 Day extra

Over Dimensional Cargo

Up to 20 km

1 Day

For every additional 20 km or part thereof

1 Day extra

 

What is the benefit of E-way Bill?

Following are the benefits of E-way Bill-

  • Less Documentation – Transporters of the goods need not to convey any physical copies as the device is attached to the vehicle and the E-way bill can be verified through the device.
  • Cost Reduction – E-way bill reduces the cost of logistics. E-way bill strengthens the invoicing properly.
  • Easy & Quick generation of E-way Bill – E-way bill generates Easily & Quickly. There is not a big task to generate an E-way bill.
  • User friendly system – E-way bill system & portal is easy and user friendly. Even dealers can download the E-way bill & can generate it.

In case of any Query related to E-way Bill, then contact Manthan Experts for immediate relief.

 

Seek Assistance for E-way Bill


Knowledge Source:

Relevance of Import Export Code (IEC) after GST and IEC Registration process

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