Hello. In this post, we will be talking about the GST E-Way Bill in detail. We have discussed the following topics:
- Latest updates on e-way bill
- What is e-way bill? What are it’s objectives?
- Benefits of e-way bill
- Generation of e-way bill:
- Details to show in e-way bill
- Acceptance and validity
- Documents to be carried with goods in transit
- Penalty for not generating e-way bill
- Important points
Latest updates on e-way bill
- Implementation of e-way bills for interstate movement of goods from April 1, 2018
- Implementation of intra-state e-way bill from April 15, 2018 in a staggered manner (States to be divided into 4 lots to execute the staggered rollout). The entire country to be covered by June 1.
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
- The traders need not visit tax offices anymore.
- Average waiting time at check-post reduces drastically
- Scope for corruption eliminated in the office or at check-posts.
- Self-policing by traders. A trader while uploading gives the identification of the buying/trader who also has to account the transaction
- Environment-friendly – nearly 50 tons of paper saved per day.
- An accurate database created-useful for tax analysis
- Officials saved of repetitive work and could devote time to analytical work.
- Revenue growth will be more than normal
- Complete Transparency of Transaction
Generation of E-way bill
In this section, we discuss about the generation of an e-way bill in detail.
Who should generate EWB?
Generation of an e-way bill is mandatory if goods of value more than Rs. 50,000 are in transit. If the value of goods is less than Rs. 50,000, then, generation of an e-way bill is optional.
The generation of the document will be done by the following:
- The supplier: If the value of goods being transported by Road, Rail, Ship or Air is above Rs. 50,000.
- The transporter: If the goods are being transported by Road, Rail, Ship or Air and the supplier has not generated the e-way bill.
- The recipient: If the supply of goods is made by an unregistered supplier to a registered recipient.
There are some cases in which generation of E-way bill is mandatory even if the value of goods in transit is below Rs. 50000. Those cases are:
- Job work where the goods are being sent by the principal of one state to the job worker in another state.
- Handicraft goods where the interstate transportation of goods is done by the dealer exempt form GST registration.
When to generate & issue EWB?
Generation of e-way bill is a requirement when there is a movement of goods of value more than Rs. 50,000,
- In relation to a ‘supply’
- For reasons other than a ‘supply’ ( like sales return, job work etc.)
- Due to inward ‘supply’ from an unregistered person.
Here, a supply can be any of the following:
- A supply made for a consideration (with payment) in the course of the business.
- Supply made for a consideration (with payment) which may not be in the course of business
- A supply without payment
The term ‘supply’ usually means:
- Sale – sale of goods and payment made
- Transfer – branch transfers for instance
- Barter/Exchange where the payment is in terms of goods instead of money
Generation of EWB’s for all these types of movements is done on the e-way bill common portal. (ewaybillgst.gov.in/ewb.html)
The process of generating E-way bill [with applicable forms]
|Who||When||E-Way Bill Part||Form|
|All GST registered dealer transporting goods||Before the movement of goods||PART A to be filled||Form GST EWB-01|
|GST Registered Dealer (Supplier or Recipient) transporting through their own or hired vehicle||Before the movement of goods||PART B to be filled||Form GST EWB-01|
|GST Registered Dealer (Supplier or Recipient) hands over the goods to the Transporter||Before the movement of goods||PART B to be filled||The registered dealer shall furnish the details of the transporter in PART B of Form GST EWB-01|
|Goods Transporter||Before movement of goods||E-Way bill to be generated based on the information shared by the dealer in PART A of the Form GST EWB-01|
|Unregistered Supplier and registered Recipient||E-way bill generation to be done by the Recipient|| If the goods are transported for a distance of 10 Kms or less, within the same State/Union territory from the place of business of the supplier to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01
If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled by the recipient
E-Way bill forms and their usage
|Form No.||Description of Form|
|GST EWB-01||E-Way Bill|
|GST EWB-02||Consolidated E-Way Bill|
|GST EWB-03||Verification Report|
|GST EWB-04||Report of Detention|
|GST INV-1||Generation of Invoice Reference Number|
Modes of generating E-way bill
- Web-Based – through E-Way Bill common portal
- SMS – through mobile
- Mobile – through mobile app (Android)
- API – through Site-to-Site integration
- Bulk generation – through tool provided
- Suvidha Provider – through the third party
Requirement of E-Way bill for movement of goods caused due to other than supply
Also, if the movement of goods is caused due to reasons others than supply, the e-way bill is required to be issued.
Reasons other than supply include movement of goods due to:
- Export / Import
- Semi Knocked Down (SKD) or Completly Knocked Down (CKD) Goods
- Unknown Recipient
- Supply of liquid gas where quantity is not known
- Supply Returns
- Goods to Exhibition or Fairs
- For your own use
- Supply on approval basis and others etc.
Non Requirement of E-way bill generation
The generation of EWB is not necessary when:
- The transportation is made through any non-motor vehicle.
- The goods are transported from the port/airport/air cargo complex/land customs station to Inland Container Depot (ICD)/Container Freight Station (CFS) for clearance of customs.
- Transportation of specified goods (Click here to download the list of specified goods)
Filling of part-B of EWB is not mandatory if the distance of transportation is less than 10 KMs and the transport is within the state.
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 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 E-way bill by the recipient
Once the supplier generates the e-way bill with all the details on the common portal, it will be available to recipient. The recipient will then communicate his acceptance or rejection of the goods under that e-way bill. 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 twenty-four 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.
Documents to carry with goods in transit
- Invoice/bill of supply/delivery challan or Invoice reference number generated on 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 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 three 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 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.
Important points to note
- If a transporter is transporting multiple goods in a single trip, then they have to generate a consolidated E-Way bill by using Form GST EWB-02. Here, the E-Way bill number of each good in transit has to be provided.
- If the EWB is not generated by both the supplier and the recipient, then the transporter can generate the same by filling the PART A of FORM GST EWB-01 on the basis of invoice/bill of supply/delivery challan given by the party.
- If the transporter is changed in the course of transit, then the new transporter details have to be updated in the E-Way bill common portal.
- Upon E-Way Bill and EBN Generation, if the goods are not transported then the E-Way bill has to be canceled within 24hrs of its generation.
- If the EWB is verified in transit, then it cannot be canceled.
- Multiple documents cannot be clubbed to generate one EWB i.e One batch of goods = One Document = One E-Way bill
- In case of SKD/CKD/Ship consignments, one invoice will result in making multiple batches of goods for movements with challans and resulting in multiple E-Way bills i.e One Invoice = Multiple Consignments with Multiple challans = Multiple E-Way bills
- The E-Way bill cannot be edited or amended. If required, then it has to be canceled within 24 hours and generate a new one. Transportation (vehicle) details can be updated any number of times until the goods reach the destination within the validity period
- EBN generated without PART-B updated is invalid for movement of goods
- The combined E-Way bill does not have any specific validity. It depends upon the E-Way bills attached to it.
- The validity of the E-Way bill starts from the time of first entry of Part-B (vehicle details), not from the time of generation of EBN
- For one E-Way bill, multiple modes of transportation can be given. Like goods is first transported by Ship, then by Air and later via Road Transportation
This ends our post. Let us know your opinion on this post by commenting below.