What is an E-Way Bill
E-Way Bill is the short form of Electronic Way Bill. It is a unique document/bill, which is electronically generated for the specific consignment/movement of goods from one place to another, either inter-state or intra-state and of value more than INR 50,000, required under the current GST regime.
Generation of the e-Way Bill has been made compulsory from 1st February 2018. However, this implementation date has been deferred until further notice.
When e-Way Bill is generated, a unique e-Way Bill Number (EBN) is made available to the supplier, recipient and the transporter.
The e-Way Bill replaces the Way Bill, which was a physical document and existed during the VAT regime for the movement of goods.
Who should generate an e-Way Bill
Let’s try to understand who needs to generate an eway bill during transportation.
GST Registered Person:
(a) When a registered person causes the movement of goods/ consignment, either in the capacity of a consignee (i.e., buyer) or consignor (i.e., seller) in his/her vehicle or hired vehicle or railways or by air or by ship, then either the registered person or the recipient should generate the e-Way Bill in Form GST EWB 01 electronically on the common portal by furnishing information in Part B.
(b) When a registered person causes the movement of goods and hands these over to the transporter for transportation by road, but the e-Way Bill has not been generated, then it is the transporter who needs to generate the bill. The registered person will first furnish the information relating to the transporter in Part B of Form GST EWB. After which, the transporter will generate the e-Way Bill by the information furnished by the registered person through Part A of Form GST EQB 01.
(a) When an unregistered person causes the movement of goods, through his/her conveyance or hired conveyance or using the services of a transporter, then the e-Way Bill needs to be generated either by the unregistered person or by the transporter, by completing Form GST EWB-01.
(b) When an unregistered person supplies the goods to a registered person AND the registered person is known to the unregistered person at the time of the start of the movement of goods, then it will be considered that the registered person is moving the consignment. In this case, the registered person or transporter shall complete the formalities of the e-Way Bill.
When Should E-Way Bill Be Issued
Ideally, e-Way Bill should be generated before the commencement of movement of goods above the value of INR 50,000 (either individual invoice or consolidated invoice of multiple consignments). The movement of goods will be either about a supply/ reasons other than supply (like return)/ inward supply from an unregistered person.
For purposes of an e-Way Bill, supply is considered either a payment in the course of business/ a payment which may not be in the course of business/ no consideration of payment (in the case of barter/ exchange).
GST E-Way Bill Format
Below is the image of the e-Way Bill to be electronically generated after completing the Form GST EWB-01.
The bill comprises of 2 parts – Part A and Part B.
Part A of the form is to collect the details of the consignment, usually about the invoice.
- GSTIN of Recipient: The recipient of the goods needs to provide the GST Identification N
- Place of Delivery: The Pin Code of the place where goods are to be delivered needs to be filled in.
- Invoice or Challan Number: The Invoice or Challan number of the supplied goods, needs to be filled in.
- Value of Goods: The total consignment value of the goods.
- HSN Code: The HSN (Harmonized System of Nomenclature) code of the transported goods is required. If the turnover is up to INR 5 crores, then the first two digits need to be mentioned. For a turnover more than INR 5 crores, four digits of HSN code are required.
- Reason for Transportation: One needs to select the most appropriate option from the list of reasons which is pre-defined.
- Transport Document Number: One needs to enter the Goods Receipt Number/ Railway Receipt Number/ Airway Bill Number/ Bill of Loading Number.
In Part B of this form, one needs to fill in the vehicle number of the transported goods. The transporter will complete this information in the common portal.
How To Generate e-Way Bills
e-Way Bills are generated either via online e-way bill system or SMS. The bill needs to be generated before the start of the movement of goods about supply/ reasons other than supply/ inward supply from an unregistered person. [Supply being defined sale of goods and payment made/ branch transfer/ barter or exchange].
Here is a step by step guide to generate E-Way Bill Online or Via SMS (created by NIC).
The table below is aimed to provide a bird’s eye-view of ‘Who, When and How’ will generate the e-Way Bill and which part of the form needs to be completed:
|A person Registered under GST||Before movement of goods||Complete Part A||GST EWB-01|
|If Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods||Before movement of goods||Complete Part B||GST EWB-01|
|Registered person is consignor or consignee and goods are handed over to transporter of goods||Before movement of goods||Complete Part B||The registered person to furnish information about the transporter GST EWB-01|
|Transporter of goods||Before movement of goods||e-Way Bill will be created based on the information completed by the registered person in Part A of GST EWB-01|
|An unregistered person under GST and recipient is registered||Recipient is considered to be same as the Supplier||1) If it is an intrastate/intra-union territory transport of 10 km or less from a business place of the consignor to business place of the transporter with the intention of further transportation, the supplier or the transporter is not required to furnish the details of conveyance in Part B of FORM GST EWB-01.
2) If air/ship /railways make the supply, then consignor or recipient needs to complete Part A of FORM GST EWB-01.
Responsibilities Of The Transporter
Under GST regime, when goods are moved from one place to another, the transporter needs to ensure to carry an e-Way Bill. When a registered person causes the movement of goods and hands these over to the transporter for transportation by road, but the e-Way Bill has not been generated, then it is the transporter who needs to create the bill.
When an unregistered person causes the movement of goods, through his/her conveyance or hired vehicle or services of a transporter, then the e-Way Bill needs to be generated and can be done by the transporter.
In cases where there are multiple consignments, being sent through one conveyance, the transporter has the responsibility to ensure that the serial number of each individually generated e-way bill per each consignment is entered on the common platform and a consolidated e-Way Bill via the Form GST EWB 02 is created.
10 Frequently Asked Questions On E-Way Bill
1) In Which cases e-Way bill is not required?
The below are the cases when the generation of e-Way Bill is not a requirement:
- When the value of the consignment of goods moved is less than INR 50,000 (however, there are certain goods for which the e-way bill is mandatory even though the value of the goods is less than Rs. 50,000. Examples of such goods are when there is an inter-state movement of goods by the Principal to Job-worker and when the Inter-State Transport of Handicraft goods by a dealer is exempted from GST registration);
- When the conveyance used is a non-motor vehicle;
- When goods are transported from port/ airport/ air cargo complex/ land customs station to Inland Container Depot or Container Freight Station for customs clearance;
- Transport of certain goods.
- If within the same state, the goods are transported for a distance less than 10 km, from the business place of the transporter to the business place of the consignee;
- If within the same state, the goods are transported for a distance less than 10 km, from the business place of consignor to the business place of transporter for further transportation
2) What is the validity of an e-Way bill ?
The validity period of an e-way Bill starts from the time of creation of the e-Way Bill. For distance traveled less than 100km, the bill is valid for one day. For every 100km or after that, the bill is valid for one additional day.
Note: That the commissioner can provide an extension of the validity period for specific categories of goods.
3) Which documents are required to generate an e-Way Bill?
One requires the below documents to generate the e-Way Bill:
(i). The invoice/ Bill of Supply/ Delivery Challan of the goods consignment;
(ii). If roadways transport the goods, then the Transporter ID or Vehicle number;
(iii). If rail, air, or ship transport the goods, then one requires ID of the Transporter, Document Number of Transport, and Document Date.
4) What are the criteria for “Value of Consignment of Goods”?
The value of consignment of goods is as below:
(i). If the invoice value exceeds INR 50,000; or,
(ii). If the vehicle is carrying goods for multiple invoices whose combined invoice value exceeds INR 50,000.
If either of the above criteria is satisfied, then one needs to generate the e-Way Bill.
Note: Invoice Value means the total transaction value inclusive of taxes per invoice.
5) Is there any penalty if the transporter fails to generate an e-Way Bill?
If the supplier for some reason fails to create the e-Way Bill, then it is the responsibility of the transporter to obtain it. If the transporter fails to do same, then he/she may face the greater of a Rs. 10,000 fine or tax assumed to be avoided. He/she is further liable for the confiscation of goods and seizure of the vehicle.
6) What happens if multiple consignments are transported in one vehicle?
If multiple consignments are sent in the same conveyance, then the transporter needs to generate one consolidated e-Way Bill through the portal, which will have the serial numbers of each individually generated e-Way Bill per consignment. This situation is also known as ‘Transshipment’.
7) During Transit, what happens if goods are transferred from one vehicle to another vehicle?
When goods are transferred from one vehicle to another during transit, before the actual transfer, and before further movement takes place, the transporter will need to update the details of the vehicle in the e-Way Bill in the Form GST EWB 01, through the common portal.
Note: If goods are transported for a distance less than 10 km within the State or Union territory from the business place of the transporter finally to the business place of the consignee, then it is not mandatory to update the details of the vehicle in the e-Way Bill.
8) What happens if E-Way Bill is generated but goods are not transported?
In case the e-Way Bill is generated but the goods have not yet transported to the destination, then the bill needs to be canceled. It can either be canceled electronically via the GST website or through a GST Facilitation Centre within 24 hours of generation of the bill. If any officer has already verified the bill during transit, then it cannot be canceled.
9) What happens if recipient of goods does not communicate the acceptance or rejection within 72 hours?
The recipient of the goods needs to communicate the acceptance or rejection of the same within 72 hours of the details appearing on the website. If the recipient does not confirm his/ her acceptance or rejection, it is assumed that he/she has accepted the consignment, by default.
10) What if I want to cancel the e-way bill?
An e-Way Bill can be canceled via the GST website or via SMS within 24 hours of its generation. However, the bill cannot be canceled if an officer in transit has verified the same.
At ProfitBooks, we think that a GST invoice is good enough to go along with the goods during transportation. Government should either simplify the e-way bill generation process or just get rid of it completely. In any case, things are definitely going to get easier within few months.
Meanwhile, if you are a business owner, you should start creating your bills in GST compatible format using our GST billing software. You can try it free for 2 weeks, it takes just few minutes to signup.See How ProfitBooks Can Help