E-Way Bill under GST: Rules, Process, and Responsibilities
The E-Way Bill system has become a crucial aspect of the Goods and Services Tax (GST) regime in India, facilitating the smooth movement of goods between different locations. This system streamlines the transportation process, ensuring compliance with GST regulations and minimizing the scope for tax evasion. In this section, we will delve into the concept of the E-Way Bill, its issuance, and the roles and responsibilities of various stakeholders.
What is an E-Way Bill?
An E-Way Bill is an electronic document generated on the E-Way Bill portal for the movement of goods from one place to another. This document is mandatory for goods valued at more than Rs. 50,000 under a single invoice or delivery challan. It contains essential details such as the parties’ GSTIN, description of goods, value, and vehicle information.
Issuance of E-Way Bill:
When is it Required?
E-Way Bills are required in various scenarios, including:
- Supply of goods for a consideration within the course of business.
- Supply of goods for a consideration not within the course of business.
- Supply of goods without consideration.
- Inward supply from an unregistered person.
- Return of supplied goods.
- Movement of goods for job work.
E-Way Bills must be generated on the common portal for all these types of movements, regardless of the value of the consignment.
Responsibilities of Different Parties:
- Registered Person:
- A registered person is required to generate an E-Way Bill when the value of goods exceeds Rs. 50,000.
- Even if the value is below Rs. 50,000, a registered person can choose to generate an E-Way Bill.
- Unregistered Person:
- Unregistered persons, when transporting goods to a registered dealer, must comply with the requirements as though they are the supplier.
- If the supplier hasn’t generated an E-Way Bill, the transporter (by road, rail, or air) must generate one.
- A transporter is not required to generate an E-Way Bill if the individual consignments’ value is below Rs. 50,000 or if the aggregate value is above Rs. 50,000.
- Transporters can enroll on the E-Way Bill portal to obtain a transporter ID, allowing them to generate E-Way Bills.
Process of E-Way Bill Generation:
- A registered person initiating the movement of goods logs into the GST portal and fills out Part A of Form GST EWB-01.
- In the case of goods handed over to a transporter, the registered person fills Part A and the transporter fills Part B of Form GST EWB-01.
- The transporter generates the E-Way Bill based on the information provided by the registered person.
- For recipients who are registered under GST, specific compliance requirements apply based on factors like distance and mode of transportation.
4. Exemptions from E-Way Bill Requirement: There are specific instances when an E-Way Bill is not required to be generated:
- When the goods are not transported via a motor vehicle.
- Movement of goods from customs ports, airports, air cargo complexes, or land customs stations to Inland Container Depots (ICDs) or Container Freight Stations (CFSs) for customs clearance.
- Movement of goods under customs supervision or seal.
- Movement of goods under Customs Bond from ICD to Customs port or between custom stations.
- Movement of goods as transit cargo to Nepal or Bhutan.
- Transport of goods due to defense formation under the Ministry of Defense as a consignor or consignee.
- Movement of empty cargo containers.
- Transport of goods by the consignor to a weighbridge for weighing within a 20 km distance, along with a delivery challan.
- Movement of goods by rail, with the consignor being Central Government, State Government, or a local authority.
- If a State or Union Territory GST rule exempts the need for an E-Way Bill.
- Goods listed in the Annexure to Rule 138(14), goods from Schedule III, and those mentioned in the Central Tax Rate notification schedule.
Generating E-Way Bills on the GST Portal: Procedure
Generating an E-Way Bill on the GST Portal involves the following steps:
Step 1: Login to the E-Way Bill System
- Access the E-Way Bill portal and log in using your credentials.
Step 2: Click on ‘Generate New’
- Choose the ‘Generate New’ option to start the process.
Step 3: Enter the Required Details
- Select the transaction type (outward or inward).
- Choose the appropriate sub-type based on the nature of the movement (supply, export, job-work, etc.).
- Enter document-related details such as document type, number, and date.
- Specify the consignment details including product name, description, HSN code, quantity, unit, value, tax rates, and cess if applicable.
- Enter transporter details if available.
Step 4: Submit the Details
- Click ‘Submit’ to process the details provided.
Step 5: E-Way Bill Generation
- Upon successful submission, an E-Way Bill in Form EWB-01 with a unique 12-digit number will be generated.
Printing the E-Way Bill:
- To print the E-Way Bill, access the ‘Print EWB’ option on the portal.
- Enter the 12-digit number and click ‘Go’.
- Choose ‘Print’ or ‘Detailed Print’ for the E-Way Bill you wish to print.
Validity of E-Way Bills: The validity of E-Way Bills is determined based on the distance traveled:
- For cargo within specified dimensions, the validity is less than 200 km – one day, and for every additional 200 km or part thereof, an additional day is added.
- For cargo above specified dimensions, the validity is less than 20 km – one day, and for every additional 20 km or part thereof, an additional day is added.
- E-Way Bill validity can be extended up to 8 hours before or after the expiry time.
Required Details or Documents for E-Way Bill Generation:
- Any invoice, bill of supply, or challan related to the goods consignment.
- Transport ID or vehicle number for road transport.
- Transporter ID, transport document number, and document date for rail, air, or ship transport.
The E-Way Bill system is a cornerstone of GST implementation in India, ensuring the efficient movement of goods while enhancing tax compliance. The issuance and management of E-Way Bills involve a shared responsibility among registered and unregistered persons as well as transporters. This integrated approach promotes transparency, accountability, and ultimately contributes to the simplification and modernization of India’s taxation system.