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E way Bills

B.R.Vinod kumar (Accounts Manager) (275 Points)

04 June 2020

Hi,

One of my client starting Wholesale trading Business, like Dry chilli, transfer from one state to another state in train. He not registered in Gst. Because newly started.

Can any one tell me, in this case E-way bills way bill is applicable and what is the solution to do a proprietorship business.

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10 Replies

KRISSHNAN KP (4215 Points)
Replied 04 June 2020

The cost of the goods must be not less than Rs 50000 asforas it is a regular activity then he may register under GST Act

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Shivam RC (Student) (23683 Points)
Replied 05 June 2020

As per Rule 138 of the CGST Rules 2017, Generation of E-way Bill is mandatory when your Consignment Value exceeds Rs. 50,000 and the goods are being transported via Motorised Vehicle.

Therefore if your Consignment Value exceeds Rs. 50,000, then the registered person needs to generate E-Way Bill.

The E-Way Bill can be prepared by the Consignor ( Supplier ) or incase where the Consignor is Un-Registered, the Consignee is required to furnish information in PART A of FORM GST EWB-01. PART B which contains the the descripttion of mode of transport is required to be generated by the Transporter. Note that even the Transporter can generate E-Way Bill ( i.e. fill both Part A & Part B ).

But incase when the goods are being transported by Railways, the E-way Bill shall be prepared by the registered person being the supplier or recipient, who shall furnish on the common portal :

(a). The information in Part B.
(b). The serial number and date of Railway Receipt.

NOTE : Rule 138(14) of the CGST Act 2017 specifies certain transaction, goods on which generation of E-way Bill is not required. Some of them are Transportation of Exempted Goods ( Notification No. 02/2017 - CT(R), dated 28.06.2017, Transportation of Alcoholic liquor for human consumption, Transportation of Empty Cargo Containers, Goods specified in Annexure ( like jewellery, coral, pearls, personal and household goods etc ) etc.

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B.R.Vinod kumar (Accounts Manager) (275 Points)
Replied 05 June 2020

Thanks for your response sir, but why government fix gst threshold limits.

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 05 June 2020

Eway bill u/r 138 is applicable to registered person, therefore if you are liable to be registered under GST (refer section 22,23,24) then EWB requirement applicable.

Alternatively, the registered recipient can raise an EWB for receipt from unregistered party.

Taxolawgy (Legal and Financial services) (491 Points)
Replied 05 June 2020

If your business is registered under the GST. No matter if it is new, if the turn over is more than 20 lakh than it is necessary that your business should be registered under the GST act. You can read more about it in GST registration in India. And if its under GST than GST Eway bill is automatically applicable. Which is for your own good. Safe and secure transportation of your goods and services has become very easy through the GST Eway bill.

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Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 05 June 2020

Hi Mr. Vinod,

While framing the law, Govt. would consider many aspects that suit Indian conditions. As advised, it is advisable to get registered under GST.

Raise E-way bills while moving goods either within state or interstate to avoid all future compliance issues.

Venkatanarayana GM

venkat @ hiregange.com

9620116162

B.R.Vinod kumar (Accounts Manager) (275 Points)
Replied 05 June 2020

Thanks all. Unregistered person issues a invoice at the time of goods transfer , this is ok.

V ANTONY RAJ (clerk) (22 Points)
Replied 05 June 2020

Hi everybody I need one clarification,
my client having dhall merchant, they purchase dhall from other country , that goods received via tuticorin Port and put in one of the rental godown.
our business place is Madurai
my doubt is at the time of generation of waybill which option I have to select.....
can anyone knows kindly clarify.....