GST e-way Bill - Benefits, details, validity and penalty

What is E-way bill?

E-Way bill is an electronic document for the movement of goods from a supplier to the recipient. This document is generated at the e-way bill common portal.

This document will be provided on the transport of goods which has a value more than Rs. 50000/-. It is mandatory that a registered dealer has to transport the goods with an e-way bill.

A unique E-Way bill number (EBN) is assigned during the generation of an E-way bill. This EBN will be available to the supplier, the recipient, and the transporter. The person in charge of transporting the goods has to carry a document during transportation.

Objectives of E-way bill

  • One e-way bill for movement of the goods throughout the country.
  • Hassle-free movement of goods for transporters throughout the country.
  • Controlling the tax evasion.
  • No need for Transit Pass in any of the state.
  • Easier verification of the e-way bill by officers with complete details.

Benefits of E-way bill

  1. The traders need not visit tax offices anymore.
  2. Average waiting time at check-post reduces drastically
  3. Scope for corruption eliminated in the office or at check-posts.
  4. Self-policing by traders. A trader while uploading gives the identification of the buying/trader who also has to account the transaction
  5. Environment-friendly – nearly 50 tons of paper saved per day.
  6. An accurate database created-useful for tax analysis
  7. Officials saved of repetitive work and could devote time to analytical work.
  8. Revenue growth will be more than normal
  9. Complete Transparency of Transaction

Benefits of e-way bill

Details to be provided in E-way bill

The FORM GST EWB-01 contains all the details of the e-way bill.  It contains two parts:

PART A PART B
GSTIN of Recipient (if the recipient is unregistered mention as URP) Vehicle Number in which goods are transported
Place of Delivery – PIN Code of Place
Invoice or Challan Number
Invoice or Challan Date
Value of Goods
HSN Code – At least 2 digit of HSN Code
Reason for Transportation – Supply/Exp/Imp/Job Work etc
Transportation Document Number (TDN) – Document Number provided by the transporter

Acceptance of the E-way bill by the recipient

Once the supplier generates the e-way bill with all the details on the common portal, then it will be available to the recipient. The recipient will then communicate his acceptance or rejection of the goods under that e-way bill. Also, this is available only to those recipients who have a registration on the portal.

If the recipient does not communicate the acceptance or otherwise within 72 hours of EWB generation, it is considered to be accepted by the recipient.

Validity of e-way bill

An E-Way bill is valid for periods as listed below, which is based on the distance traveled by the goods.

Sl. No Distance Validity Period
1 Less than 100 Km 1 Day
2 For every 100 Kms thereafter 1 Day

Here, the period of validity shall be counted from the time at which the EWB has been generated and each day shall be counted as 24 hours.

However, Commissioner may extend the validity period only by way of issuance of a notification for certain categories of goods which shall be specified later.

Also, if under circumstances of an exceptional nature, then the goods cannot be transported within the validity period of the EWB, the transporter may generate another EWB after updating the details in Part B of FORM GST EWB-01.

Goods can not move once the validity expires.

e-way bill validity

Documents to carry with goods in transit

  • Invoice/bill of supply/delivery challan or Invoice reference number generated on the portal has to be carried by the transporter during transit.
  • A copy of the e-way bill or the e-way bill number. This can be either in physical form or mapped to a Radio Frequency Identification Device (RFID) embedded to the transportation in such manner as may be notified by the Commissioner
  • RFID mapping may be compulsory for such class of transporters ( Notified by Commissioner)

Penalty for not generating E-way bill

RFID readers will be installed at places meant for verification. Physical verification also will be done by the authorized officers.

On receipt of specific information of tax evasion, physical verification of a specific transportation shall be done after obtaining necessary approval of the Commissioner or an authorized officer on behalf of the Commissioner.

A summary of verification report of every inspection of goods in transit has to be submitted within 24 hours of such verification in FORM GST EWB-03 (PART A).

Final report of such verification should be submitted within 3 days of the inspection in FORM GST EWB-03 (PART B).

Once physical verification is done, then no further verification in the state shall be done provided any specific information on transit is reported.

Delay due to inspection

The facility is provided for uploading information regarding detention of vehicle i.e., where a vehicle has been stopped and taken into custody for a period exceeding thirty minutes. The transporter may upload the information in FORM GST EWB-04 on the E-Way Bill common portal.

This ends our post. Let us know your opinion on this post by commenting below.

Related: E-way bill generation process through Eway bill portal.

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