Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.
E-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of section 68 of the Goods and Services Tax Act read with rule 138 of the rules framed thereunder. It is generated from the GST Common Portal by the registered persons or transporters who cause movement of goods of consignment before commencement of such movement.
Rule 138 of the CGST Rules, 2017 provides for the e-way bill mechanism and in this context it is important to note that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for reasons other than supply”.
How all can generate the e-way bill?
Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.
Purpose of E-Way Bill
E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion.
How is it generated?
An e-way bill contains two parts-
Part A to be furnished by the person who is causing movement of goods of consignment value exceeding Rs.50,000/-.
Part B (transport details) to be furnished by the person who is transporting the goods.
Where the goods are transported by a registered person whether as consignor or recipient, the said person shall have to generate the e-way bill by furnishing information in part B on the GST common portal. Where the e-way bill is not generated by registered person and the goods are handed over to the transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.
Exceptions to e-way bill requirement
No e-way bill is required to be generated in the following cases:
- Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017
- Goods being transported by a non-motorised conveyance;
- Goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
- In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State; and
- Consignment value less than Rs. 50,000/-
Cancellation of E-Way Bill
Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill. However, an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B of the CGST Rules, 2017 .
Validity of E-Way Bill
The validity of e-way bill depends on the distance to be travelled by the goods. For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant date. For every 100 Km thereafter, the validity will be additional one day from the relevant date.
The “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.
What are the modes of e-way bill generation, the taxpayer can use?
The e-way bill can be generated by the registered person in any of the following methods:
- Using Web based system
- Using SMS based facility
- Using Android App
- Using Site-to-Site integration
- Using GSP ( Goods and Services Tax Suvidha Provider)
Objectives of e-way bill:
- No- need for separate transit pass in each state for movement of goods.
- Single e-way bill for hassle-free movement of goods throughout the country.
Benefits of e-way Bill:
- No waiting time at check posts and faster movement of goods thereby optimum use of vehicles/resources, since there are no check posts in GST regime.
- User-friendly e-way Bill system.
- Easy and quick generation of e-way bill system.
- Taxpayers/ Transporters need not visit any tax officers for generation of e-way bill/ movement of goods across states.
- Checks and balances for smooth tax administration and process simplification for easier verification of e-way bill by Tax Officers.
Features of the e-way bill portal:
- User can create masters of his customers, suppliers & products for easy generation of e-way Bill.
- User can monitor e-way Bills generated on his account/ behalf
- Multiple modes for e-way bill generation for ease of use of services.
- Alert will be sent to users via e-mail and SMS on registered mail id and Mobile Number.
- QR code will be printed on each e-way bill for ease of seeing details
- Vehicle number can be entered either by the supplier/recipient of goods who generates EWB or transporter.
- Consolidated e-way bill can be generated for vehicle carrying multiple consignments.
The author can also be reached at rocguru@gmail.com
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