What is the E-Way Bill System?
E-Way Bill or electronic way bill is simply a compliance mechanism. It is a document that contains shipment details for goods’ assignments.
According to the e-way bill mechanism, an individual handling the movement of goods uploads pertinent details. But, they need to upload the details before the good’s transportation.
Some Points Related to E-way Bill
- This is compulsory for the inter-state movement for consignments whose value is more than ₹50, 000.
- Using GSTIN, a GST taxpayer can register for evidencing a good’s movement in the E-way Bill portal.
- An unregistered person can enrol themselves using their PAN Card and Aadhaar Card.
- Transporter, Supplier, and Recipient should create the e-Way Bill.
- To process easy verification, one needs the QR code.
- e-Way bill is not vital for transport that has non-motorized conveyance
E-Way Bill Under GST
It is an electronic document crafted on the portal of GST. It marks the moving of goods. It has 2 components:
1. Part A
It contains many details. They are
- HSN code
- Recipient’s GSTIN
- Number and Date of the Challan or Invoice
- Place of delivery (PIN Code)
- Transport document number (Airway Bill Number, Goods Receipt
- Number or Receipt of Railway) and cause of transportation.
2. Part B
It consists of information about the transporter such as Vehicle number.
Purpose of E-Way Bill
- Its aim is to trace the movement of goods and check evasion of tax.
- E-way Bill makes sure that goods are transported with the GST Law.
Who can Generate the E-way Bill?
The consignee or consignor can generate an E-way bill:-
- If the transportation is done by own conveyance, railways, or air.
- If the transporter handles goods for transportation by road, he/she should generate the bill.
The transporter must create the bill in the following cases:
- If the e-way bill is not generated by the consignee/consignor.
- If the value exceeds ₹50,000
How is it Generated?
You should Log in to the official portal of this app to generate an E-way bill. The process of generation of the E-Way Bill is simple.
Types of E-way Bill Creation
The various ways of generation of e-way bills are
- Online Mode
- Android App (The IMEI and the registered number are needed)
- Excel-based (It is for a large amount of creation )
If the e-Way Bill is generated with the correct inputs, it will be accepted. You can generate a fresh e-Way Bill.
Validity of E-Way Bill
The potency of the e-way bill calculates with the distance. If the location is less than 100km, the account will be legit for a day. For distances more than 100 km, the validity will be one more day from the relevant date.
Typically, the validity of the e-way bill can’t be extended. But, Commissioners have the right to extend the validity period in certain cases.
(Relevant Date: The date of formation of the e-way bill. The validity’s time is noted from when the e-way invoice was created. Each day is counted as 24 hours.
Cancellation of E-Way Bill
If the products are not transported, the e-way bill will be electronically cancelled. The same thing occurs when an e-way bill is not transported in accordance with the information specified in the e-way bill.
Within an interval of 24 hours of the creation of the e-way bill, the Commissioner may notify the Facilitation Center to cancel it. According to Rule 138B of the CGST Rules, 2017, if the bill is verified, it can’t be cancelled.
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Cases: No Need for E-way Bill
You need not create an e-way bill in these cases:
- Transport of objects as mentioned in Annexure to Rule 138 of the CGST Rules, 2017.
- Motorless transport products.
- When products move between the locations mentioned in Rule 138 (14) (d) of the SGST Rules, 2017.
- When the Consignment value is less than ₹50,000.
Result of Non-conformance to E-way Bill Rules
According to the 138 of the CGST Rules, 2017, “If e-way bills are not sanctioned as mentioned in the Rules, it will be considered as a breach”.
If without specific documents, a taxable person transports taxable goods, he/she will be charged with a penalty of ₹10,000. It is mentioned in Section 122 of the CGST Act, 2017.
According to section 129 of the CGST Act, 2017, if an individual transports products or stores them which are used as resources can be seized. The automobile and the documents of the same will be seized also.
E-Way Bill reduces travel time as well as cost. Overall, it’s a mechanism that ensures goods are being transported with GST Law.