Streamlined Process for GST eWay Bill

An e-way bill, short for Electronic Way Bill, is a digital document that plays a crucial role in tracking the movement of goods. It's particularly significant within the framework of the Goods and Services Tax (GST) system. This bill becomes mandatory when goods valued over Rs. 50,000 are transported by an individual or entity registered under GST. GST eWay Bill should be generated before the commencement of the transportation of the consignment.

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What is an e-Way bill?

An E-way bill, short for electronic way bill, is essential for the movement of goods in both inter-state and intra-state transportation under the GST regime.

An E-way bill is an electronic document generated on the e way bill portal (ewaybillgst.gov.in), which serves as proof of the movement of goods. It acts as a digital compliance tool under the GST framework, where the consignor or seller inputs relevant information about the goods before they are transported and an e way bill generate on the GST portal.

The E-way bill includes important details such as:

• Name of the consignor
• Name of the consignee
• Origin of the consignment
• Destination
• Proposed route

According to GST regulations, any person registered under GST who initiates the transportation of goods with a consignment value exceeding Rs. 50,000 must provide details of these goods in an E way bill system before the goods begin their journey.

The requirement for an e-way bill is mandated under Section 68 of the CGST Act and further detailed in Rule 138 of the CGST Rules, 2017.

The requirement to use an e-way bill for interstate supplies came into effect on April 1, 2018. It was extended to intrastate supplies in certain states (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Puducherry) starting April 25, 2018.

Key Components of eWay Bill System

The e-way bill, crucial for the movement of goods in India, consists of Part A and Part B.

Part A of the e-way bill

Part A of the e-way bill involves gathering vital information about the consignment, primarily related to the invoice. The details required in Part A include:

• GSTIN of the recipient, i.e., the person to whom the goods are supplied.
• Pin code of the delivery location.
• Invoice or challan number linked to the goods' supply.
• Value of the consignment, indicating the monetary worth of the transported goods.
• HSN code of the goods. Businesses with a turnover of Rs. 5 crores should mention the first two digits of the HSN code, while those with a turnover above Rs. 5 crores need to provide a four-digit HSN code.
• Reason for transportation, chosen from a list of predefined options.
• Transport document number, which could be the goods receipt number, airway bill number, railway receipt number, etc.

Part B of the e-way bill

Part B of the e-way bill captures the transportation specifics. This includes the vehicle number for road transport or other conveyance details via rail, air, or ship. Part A and B are required to constitute a complete e-way bill, which is obligatory for transporting goods exceeding Rs. 50,000 in value, within or across state lines, under the GST framework.

When is an e-way bill generated?

An e way bill generate is required before the dispatch of goods. It must encompass key details about the goods, including information about the consignor, recipient, and transporter.

The scenarios necessitating an e-way bill include:

• For Supply of Goods: Whenever goods are supplied, an e-way bill is essential.
• For Non-Supply Transactions: This category includes various situations such as:
• Export/import of goods.
• Returning goods.
• Sending goods for job work.
• Line sales.
• Sales on an approval basis.
• Supply of semi or completely knocked-down items.
• Goods supplied for exhibitions or fairs.
• Goods used for personal consumption.
• In all these cases, generating an e-way bill ensures compliance with the necessary transport and tax regulations.

Who should generate an eWay Bill?

The generation of an eWay Bill GST is required in the following scenarios for individuals or entities registered under GST:

• When goods over Rs. 50,000 are moved to or from a GST-registered person, the supplier and recipient must generate the eWay Bill. This applies if the goods in transit exceed Rs. 50,000.
• Even for goods valued at less than Rs. 50,000, a registered person can generate an eWay Bill voluntarily.
• When an unregistered person supplies goods to someone who is registered, it is the responsibility of the unregistered supplier to generate the eWay Bill. Here, the registered recipient must ensure all necessary compliance, including the generation of the eWay Bill.
• If the supplier, a registered person, has yet to generate an eWay Bill GST for the goods in transit, the onus falls on the transporter. The transporter must generate the eWay Bill regardless of the goods' value.

Note that the consignor can delegate the responsibility of filling out PART-A of the e-way bill to the transporter, courier agency, or e-commerce operator.

Additionally, e way bill generate must be executed regardless of the consignment's value, even if it is less than Rs.50,000, in the following two scenarios:

• When a principal sends goods to a job worker in an inter-state transaction.
• For an inter-state transfer of handicraft goods by a supplier exempt from GST registration.

Exemptions and Situations Where E-Way Bill is Not Necessary

The requirement for an e-way bill is waived in certain instances, especially when transporting specific goods or under particular conditions:

Goods Exempt from E-Way Bill:

• Liquefied petroleum gas (LPG) for household and non-domestic exempted category customers.
• Postal baggage by the Department of Posts.
• Kerosene oil is distributed under the Public Distribution System.
• Precious items like natural or cultured pearls, precious metals and stones, and articles from these (Chapter 71).
• Currency.
• Used personal and household effects.
• Coral, both unworked (0508) and worked (9601).

Customs-Related Exemptions:

• Goods are moved from a customs port, airport, air cargo complex, or land customs station to an inland container depot or freight station for clearance.
• Transportation using non-motorized conveyances.

Specific Goods Exempt from E-Way Bill:

• Alcoholic liquor for human consumption.
• Petroleum crude.
• High-speed diesel.
• Motor spirit (petrol).
• Natural gas.
• Aviation turbine fuel.

Optional E-Way Bill Generation:

• In cases where there is no supply as per Schedule III of the Act.
• Additional Specific Exemptions:
• Transit cargo to and from Nepal or Bhutan.
• Goods are exempt from tax under various notifications.
• Transportation by rail by Central, State Government, or local authority.
• Transport by defense formations under the Ministry of Defense.
• Transport of empty cargo containers.
• Transportation of goods weighing within 20 km from the consignor’s business to the weighbridge, accompanied by a delivery challan.

Validity of Eway Bill

There is a specific validity period for an e-way bill, which is determined based on the distance the goods are transported. The e-way bill is valid for one day for every 100 kilometers or part thereof for regular vehicles or standard transportation modes.

In the case of Over Dimensional Cargo (ODC) vehicles, the validity is one day for every 20 kilometers or part thereof. It's important to note that this validity period expires at midnight on the last day.

Eway Bill Machansim

The e-way bill mechanism functions as follows:

Registration on the Common Portal

• To comply with e-way bill regulations, individuals must first register on the common GST portal.
• Generation of the E-Way Bill

After registration, they can generate an e-way bill on this portal.

Allocation of a Unique E-Way Bill Number

• Upon generating the e-way bill, a unique e-way bill number (EBN) is provided and made available to three key parties via the common portal: the supplier, the recipient, and the transporter.

Filing Part A of Form GST EWB-01

• Once Part A of the form GST EWB-01 is filled, there’s a feature on the portal that allows the other party (either the supplier, recipient, or transporter, depending on who generates the bill) to view the e-way bill generated against their GSTIN.

Requirement for Acceptance or Rejection

The party at the other end must accept or reject the consignment details specified in the e-way bill.

Deemed Acceptance

Suppose there is no communication of acceptance or rejection within 72 hours from the generation of the e-way bill or the time of delivery of the goods (whichever is earlier). In that case, the details are considered accepted by default.

Documents Required Generating an e-way Bill:

To generate an e-way bill, the following documents are required, depending on the mode of transport:

For Transport by Road:

• Invoice/Bill of Supply/Challan related to the goods being transported.
• Transporter ID or the Vehicle Number of the vehicle used for transportation.

For Transport by Rail, Air, or Ship:

• Invoice, Challan relevant to the consignment of goods Bill of Supply,.
• Transporter ID
• Transport document number and date, which are specific to the mode of transport used (rail, air, or ship).

How to register for an e-way bill?

Various modes are available on the common portal to register for an e-way bill under the eway bill system. These include:

• SMS: Registration can be done via SMS.
• Android Application: An Android app is available for e-way bill registration.
• Web-Based Mode: This is the primary mode for registration.
• API-Based: For integration with business systems.
• GST Suvidha Providers: Utilizing services offered by GST Suvidha Providers.

Users must initially register through the web-based e way bill system regardless of the chosen mode.

How to Generate E-Way Bills?

Generating EWay Bill online is a straightforward process through the E way Bill portal. It offers various functionalities like generating single and consolidated E-Way Bills, updating vehicle numbers on existing Ones, and canceling them.

Issuing via GSTN

The e-way bill can be created on the GSTN portal. This involves entering details about the goods, the consignor, the recipient, and the transporter.

Receipt of E-Way Bill Number (EBN)

Once generated, an e-way bill number (EBN) is provided to the supplier, recipient, and the transporter involved in the movement of goods.

SMS Option for Generating and Canceling E-Way Bills

For suppliers without internet access, e-way bills can also be generated or canceled via SMS. To use this service, the supplier must first register for the SMS facility on the GSTN portal by selecting the ‘For SMS’ option under the ‘Registration’ tab.

The details of the generated e-way bill are accessible on the common GST portal for the recipient.

Note:

The recipient must either accept or reject the e-way bill on the portal. If no action is taken within 72 hours, the e-way bill is automatically considered as 'accepted'.

What are the penalties associated with the e-way bill?

The individual responsible is penalized if a consignment is transported without an e-way bill. This penalty is either Rs. 10,000 or an amount equal to the tax evaded on the consignment, whichever is higher.

Introduction to IndiaFilings' LEDGERS Software

IndiaFilings offers a robust solution with our LEDGERS software, streamlining the process of generating GST e Way Bill online. This software is designed to simplify the complexities of eWay Bill generation, making it a straightforward task for businesses of all sizes. By using LEDGERS, you can efficiently create eWay Bills with ease and accuracy, ensuring compliance with the GST regulations. The platform's user-friendly interface allows for quick data entry and seamless integration with business operations, thus enhancing overall efficiency. Whether it's a single eWay Bill or multiple ones, LEDGERS is equipped to handle the requirements efficiently, making it an indispensable tool for businesses navigating through the intricacies of GST and eWay Bill compliance.

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