What exactly is E-way bill?E-Way bill is not a new process. It was already implemented in some of the states under the VAT regime. It was used to keep an eye on the movement of goods from/to a state in order to check tax evasion. It was generated at many offline sites. But, now under GST it is generated online. That is why we call it as E-way bill. Also, E-way bill, now has a uniform set of rules applicable throughout the country. This system was drafted to achieve the following goals:
- A way to better handle the Indian logistic ecosystem which will help to maintain lesser traffic.
- Replacing the check posts by mobile squads(apps).
- Reducing the cost of transportation.
- Following are the questions that are likely to come into your mind:
Why is the E-way Bill required?E-way bill is required for the supply of goods of cost more than ₹50,000 and promises to enable faster supply of goods through a seamless online portal-driven payment system. What documents does the supplier/consigner is required to give to the transporter during the Goods transit? - The documents that are needed to be given to the transporter is the Tax invoice/ bill of supply/delivery challan and E-way bill copy.
When is the E-way bill issued?The primary factor is that if the value of the consignment is more than ₹50,000 that is to be transported. E-way bill must be generated on the online common portal for any kind if movement. It may be for the supply of goods for payment, without payment and may or may not be in the course of business.E-way bill has to be generated compulsory for certain type of goods, even if its cost is less than ₹50,000.
Following are some situations where E-way bill is mandatory:
- When there is an Inter-State movement of Goods to a Job worker.
- In case of Inter-State Transport of Handicraft goods by a dealer exempted from GST registration.
Who can issue E-way bill?E-way bill can be issued by registered supplier. It can be issued by the Transporter if the supplier/receiver both do not issue an E-way bill.
- Registered Supplier/ Receiver – A Registered person/Transporter may choose to generate and carry E-way bill even if the cost of Goods is less than ₹50,000.
- Unregistered Person – In case of an Unregistered Person, the generation of E-way bill is absolutely mandatory for the supply of goods. Here, the receiver has to make sure that all the compliance are met.
- Transporter – The Transporter who are transporting the Goods by road, air, rail, etc. need to generate E-way Bill in case the supplier/receiver has not generated an E-way bill.
In what situations is the E-way bill not required?
- When goods are transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by customs.
- When the distance between the supplier/receiver and transporter is less than 10 km, and is an Intra-State business, there is no need to issue PART-B of the E-way Bill.
- Goods send under Customs supervision, also doesn’t need an issuance of E-way Bill.
- When the supplier/consignor and consignee of the Goods that are to be transported are due to Defense Formation under Ministry of Defense (MOD).
- Empty Cargo containers does not require issuance of E-way Bill.
What is the validity of E-way bill?The E-way bill will be valid for only 1 day, if the distance of transportation is less than 100 km. With every additional 100 km, validity will increase by 1 day. For example, if there is a distance of 775 km, the validity will be 8 days. If the transportation of Goods is not done in the validity of E-way bill, it has to be renewed so that the validity is extended.
How to generate E-way bill?Login to E-way bill system. (https://www.ewaybill.nic.in/) Under E-way Bill section, click on “Generate New” and the necessary information. Take a printout of it and give a copy to the transporter.
- Auto calculation of route distance based on PIN code for generation of EWB - E-way bill system is now used to auto calculate the route distance for transportation of goods, based on the Postal PIN codes of supplier and receiver. The modification in distance shall be limited to nearly 10% more/less than the system displayed distance for entry. Example: – If the system has displayed the distance between Place A and B, based on the PIN Codes, as 400 Km, then the user can change the distance max up to 440 Km (400 Km + 40 Km).
- Blocking of generation of multiple E-Way Bills on one document - Once E-way Bill has been generated with a document number (invoice/delivery challan/bill of supply/ other document), then no one can generate the E-Way Bill with the same document number. One Invoice, One E-way Bill policy is being followed. This will be coming in the upcoming version.
- Extension of E-Way Bill in case Consignment is in transit - Transporters had requested to allow facility for extension of validity. During the extension of the E-way bill, the user is made mandatory to answer whether the Consignment is in Transit or in Movement. On clicking of In Transit, the address details of that place need to be provided. On selection of In Movement, the system will need the user to enter the Place and Vehicle details from where the extension is required.
- Blocking of Interstate Transactions for Composition dealers - If the supplier is a composition tax payer, generation of E-way bill for Inter-State transportation of Goods will not be allowed in the next version.