E-Way Bill
E-Way Bill
An E-Way Bill (Electronic Way Bill) is a document required for the movement of goods worth more than ₹50,000 under the Goods and Services Tax (GST) regime in India. It is a mandatory document that ensures the goods being transported comply with the GST law. Here is a detailed breakdown
What is an E-Way Bill?
An E-Way Bill is a unique document generated online through the GST Network (GSTN) portal, ensuring that goods are transported in compliance with GST laws. It contains details like the goods being transported, their value, the GST rate, and details of the consignor and consignee.
When is an E-Way Bill Required?
An E-Way Bill is required in the following situations:
- Movement of goods worth more than ₹50,000 within a state or between states.
- For transportation by all modes: road, rail, air, or sea.
- Even if the value is less than ₹50,000, an E-Way Bill may be required for specific cases like inter-state transfer of goods, job work, or movement of goods under customs bond.
Exemptions
Some exemptions from generating an E-Way Bill include:
- Transporting goods within a distance of 50 km for intra-state supplies.
- Non-motorized conveyances (like bicycles or handcarts).
- Specific goods like LPG, kerosene, and postal packages.
Key Components of an E-Way Bill
- Part A: Consists of details of the goods, invoice, supplier, recipient, and GSTIN.
- Part B: Includes details of the transporter, vehicle number, and transportation mode.
Who Generates an E-Way Bill?
- Supplier/Consignor: If the goods are being transported by the supplier or the recipient.
- Recipient/Consignee: In cases where the recipient takes delivery directly.
- Transporter: If the transportation is done by a third-party logistics service provider.
Validity of an E-Way Bill
The validity of the E-Way Bill depends on the distance the goods need to be transported:
- Less than 100 km: 1 day
- For every additional 100 km: 1 extra day
- Validity can be extended under certain conditions.
Penalties for Non-Compliance
Failure to generate an E-Way Bill can lead to:
- A penalty of ₹10,000 or the tax sought to be evaded (whichever is higher).
- Detention and seizure of goods and the vehicle used for transportation.
How to Generate an E-Way Bill?
An E-Way Bill can be generated online via:
- The GST portal (ewaybillgst.gov.in)
- SMS-based system: Allows users to generate bills via text messages.
- Mobile app: Various third-party apps are integrated with the GST system.
- API integration: Businesses can integrate their billing systems with the GST portal.
Cancellation of E-Way Bill
An E-Way Bill can be canceled within 24 hours of generation if the goods are not transported or the details in the bill are incorrect
Documents Required to Generate an E-Way Bill
- GSTIN of the supplier and recipient
- Invoice/Challan/Bill of supply related to the consignment
- Transporter ID or vehicle number
Tracking and Managing E-Way Bills
Users can track E-Way Bills and check their validity using the E-Way Bill portal.
Types of E-Way Bills
Regular E-Way Bill: Issued when the goods are being transported in the normal course of business.
Consolidated E-Way Bill: This is generated when multiple consignments are being transported in a single vehicle. A consolidated E-Way Bill combines all individual E-Way Bills into one document.
How to Update Vehicle Details in an E-Way Bill?
If the vehicle used to transport the goods changes during transit (e.g., breakdown or route change), the transporter or consignor can update the vehicle number in Part B of the E-Way Bill. The steps are:
- Login to the E-Way Bill portal.
- Select the E-Way Bill to update, and modify the vehicle details.
- The updated E-Way Bill must be carried by the new vehicle.
Role of Transporters in the E-Way Bill System
- Transporter ID: Every transporter is required to enroll on the GST portal and get a 15-digit Transporter ID, especially if they transport goods for businesses that don’t generate the E-Way Bill themselves.
- Transfer of Goods: If goods are transferred from one vehicle to another during transit, transporters must update the E-Way Bill with the new vehicle details.
E-Way Bill for Transport by Rail, Air, or Sea
For transportation by rail, air, or sea:
- The E-Way Bill must be generated before handing over the goods to the transporter or carrier.
- The transporter’s details (such as the carrier’s name and Transporter ID) are entered instead of a vehicle number.
Documents That Must Accompany the Consignment
The following documents must be carried by the person in charge of the conveyance:
- Invoice: A copy of the invoice, bill of supply, or delivery challan.
- E-Way Bill: A copy of the E-Way Bill or the E-Way Bill number.
E-Way Bill Generation in Special Cases
- Job Work: In the case of job work, either the principal or the job worker can generate the E-Way Bill if the value exceeds ₹50,000.
- Handicraft Goods: Handicraft suppliers are required to generate an E-Way Bill even if the value of the consignment is less than ₹50,000 for inter-state movement.
Exceptions for Non-Motorized Conveyance
Non-motorized conveyances (e.g., animal carts, hand-pulled carts) are exempt from the E-Way Bill requirements, regardless of the value of the consignment.
Parties Involved in the E-Way Bill Process
- Supplier: Initiates the process by entering the details of the consignment in Part A of the E-Way Bill.
- Recipient: Can generate the E-Way Bill if they are transporting the goods or can also reject the E-Way Bill if it was generated incorrectly.
- Transporter: Responsible for completing Part B, which includes the vehicle number and mode of transport.
E-Way Bill and Bill of Supply
- A Bill of Supply is used for goods on which GST is not applicable, such as exempted goods or goods supplied by composition scheme dealers.
- Even in such cases, if the consignment value exceeds ₹50,000, an E-Way Bill must be generated.
E-Way Bill for Imports and Exports
- Imports: An E-Way Bill is required when goods are moved from the customs port/airport to the importer’s location.
- Exports: For exports, the E-Way Bill is generated for the movement of goods from the supplier’s location to the customs port/airport/ICD (Inland Container Depot).
Rejection of E-Way Bill
The recipient of goods has the right to reject an E-Way Bill if it was generated incorrectly or if they have not agreed to the terms of delivery. This must be done within 72 hours of the E-Way Bill being generated or before the goods are delivered (whichever comes first).
Validity Extension
If the goods cannot be delivered within the validity period due to unforeseen circumstances like vehicle breakdown, natural calamity, or roadblock, the transporter or supplier can extend the validity of the E-Way Bill by updating the portal with the reason for delay.
E-Way Bill for Return Goods
If goods are being returned to the supplier (e.g., due to rejection or quality issues), a new E-Way Bill must be generated for the return journey.
Penalties for Incorrect E-Way Bills
In addition to non-generation, penalties can be imposed if the E-Way Bill has incorrect or fraudulent details, including:
- Goods not matching the details on the E-Way Bill.
- Incorrect vehicle number or transporter details.
E-Way Bill Reconciliation
Businesses are advised to reconcile their E-Way Bills with their invoices and GST returns to ensure accuracy and avoid penalties. Regular reconciliation can help avoid errors and mismatches in GST filings.
E-Way Bill Compliance for E-Commerce
E-commerce operators must also comply with E-Way Bill regulations. For instance, if the e-commerce operator facilitates the movement of goods, they or the supplier must generate the E-Way Bill, depending on who is responsible for transporting the goods.
Offline Tools for E-Way Bill
The GST portal provides an offline tool to generate E-Way Bills in bulk. This is useful for businesses with multiple consignments, where uploading E-Way Bills one by one might be cumbersome.
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