E-way bill refers to a document to be carried by the person in charge of conveyance generate electronically, to reduce tax evasion with proper invoicing of the goods and to stop the practice of bogus Invoicing of goods.
E-way bill is mandatory for every registered person who causes movement of goods of consignment value exceeding Rs. 50,000
- In relation to a ‘supply’
- For reasons other than a ‘supply’ ( say a return)
- Due to inward ‘supply’ from an unregistered person
before commencement of such movement, furnish information relating to the said goods in Form GST EWB-01, electronically on the common portal.
The taxpayer has to upload the details of each transaction to a common portal through the Internet, and once uploaded, the common portal would automatically generate a document that can be tracked and verified easily by any stakeholder.
Details to be furnished in Form GST EWB-01:
The information furnished while generating e-Way Bill such as
- GSTIN of recipient
- Place of delivery
- Invoice Number
- Invoice date
- Value of goods
- HSN code
- Transporter details.
The person in charge of a conveyance shall carry — (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-Way Bill or the e-Way Bill number. An officer authorized by the State can intercept any conveyance to verify the e-Way Bill or the e-Way Bill number in physical form for all inter-State and intra-State movement of goods.
If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not created an e-way bill, then the transporter can do so * by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.
Benefits of e-Way Bill system:
The major benefits of e-Way Bill system are as follows:
- The traders need not visit tax offices to collect and submit the Way Bill forms as used to be done in VAT regimes in some states.
- Average waiting time at mobile squad reduces drastically – As the verification of the e-Way Bill is done with the common portal, it will speed up the process of verification and allowing the vehicle to pass faster.
- Self-policing by traders- A trader while uploading gives the identification of the buying trader who will also account the transaction automatically.
- Environment-friendly – The need for the paper form of the multiple copies of waybill is eliminated. Hence, the tons of paper are saved per day.
- Generation of GSTR-1 returns – GSTR-1 return of the supplier is auto prepared, hence he need not have to upload the same.
- Officials saved of monotonous work collecting and matching the manual waybill with the returns of the taxpayers.
Registration in E-way bill portal (common portal):
- Visit, https://ewaybillgst.gov.in/
- Click on the ‘e-way bill Registration’ link under ‘Registration’ option.
- Enter GSTIN and captcha then submit, Once submitted the details of a taxpayer are auto-populated.
- Then click on ‘Send OTP’, then verify using OTP sent to mobile or mail.
- Then the user needs to o provide his choice of User ID or username, which he/she plans to use to operate his account on this system. Username should be about 8 to 15 alphanumeric characters and can include special characters.
- Once a request is submitted then the user can log in using credentials and generate the E-way bill.
Cases when e-Way bill is Not Required:
In the following cases it is not necessary to generate e-Way Bill:
- The mode of transport is non-motor vehicle
- Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
- Goods transported under Customs supervision or under customs seal
- Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
- Transit cargo transported to or from Nepal or Bhutan
- Movement of goods caused by defense formation under Ministry of defense as a consignor or consignee
- Empty Cargo containers are being transported
- Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 km, accompanied by a Delivery challan.
- Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or local authority.
- Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
- Transport of certain specified goods- Includes the list of exempt supply of goods
Process for generating E-Way bill:
- Login to https://ewaybill.nic.in/ using credential and captcha.
- Click on ‘Generate new’ under ‘E-waybill’ option appearing on the left-hand side of the dashboard.
- Enter the following fields on the screen that appears:
- Transaction Type:
- Select ‘Outward’ if you are a supplier of consignment
- Select ‘Inward’ if you are a recipient of consignment.
- Sub-type: Select the relevant sub-type applicable to you:
- If transaction type selected is Outward, following subtypes appear:
- If transaction type selected is Inward, following subtypes appear:
- Transaction Type:
Note: SKD/CKD- Semi knocked down condition/ Complete knocked down condition
- Document type: Select either of Invoice / Bill/ challan/ credit note/ Bill of entry or others if not Listed
- Document No. : Enter the document/invoice number
- Document Date: Select the date of the Invoice or challan or Document.
Note: The system will not allow the user to enter the future date.
- From/ To Depending on whether you are a supplier or a recipient, enter the To / From section details.
Note: If the supplier/client is unregistered, then mention ‘URP’ in the field GSTIN, indicating that the supplier/client is an ‘Unregistered Person’.
- Item Details: Add the details of the consignment (HSN code-wise) in this section:
- Product name
- HSN Code
- Value/Taxable value
- Tax rates of CGST and SGST or IGST (in %)
- Tax rate of Cess, if any charged (in %)
Note: On the implementation of Eway bills, Based on the details entered here, corresponding entries can also be auto-populated in the respective GST Return while filing on GST portal.
- Transporter details: The mode of transport(road/rail/ship/air) and the approximate distance covered (in KM) needs to be compulsorily mentioned in this part.
- Apart from above, Either of the details can be mentioned:
- Transporter name, transporter ID, transporter Doc. No. & Date.
- Vehicle number in which consignment is being transported.
Note: For products, clients/customers, suppliers, and transporters that are used regularly, first update the ‘My masters’ section also available on the login dashboard and then proceed.
- Click on ‘Submit’. The system validates data entered and then processed and it shows up an error if any.
- Print the E-way bill generated after successfully processed.
Cancellation of E Way Bill:
In case, an e-way bill had been generated, but the goods have not been transported or are not transported as per the details furnished in the bill, then the e-way bill can be canceled online on the GST Portal or through a GST Facilitation Centre.
A GST e-way bill can be canceled easily within 24 hours of its generation. However, an e-way bill cannot be canceled if it had been verified in transit.
Validity of E Way Bill
The Validity of E Way Bill is depended upon 2 factors i.e. Cargo Type and Distance.
In Case of Normal Cargo:-
|Up to 100 KM||1 Day|
|After that for every 100 KM or Part thereof||1 Day|
Example: – If Distance of movement is 823 KM then validity of E way Bill is 9 Days
In Case of Over Dimensional Cargo:-
|Up to 20 KM||1 Day|
|After that for every 20 KM or part thereof||1 Day|
Example: – If Distance of Movement is 45 KM in case of Over Dimensional Cargo then the validity of E way Bill is 3 Days.