Goods and Service Tax

What is E-Way Bill? – Rules, System, and Generation Process

calendar13 Mar, 2023
timeReading Time: 7 Minutes
What is E-Way Bill? – Rules, System, and Generation Process

An e-way bill is an electronic record that confirms the transportation of goods. This document is created by the e-way bill website, which can be found at ewaybillgst.gov.in. It is essentially a GST compliance system in which the person responsible for the movement of goods (the consignor or seller) enters the necessary information prior to the movement of goods commencing and generates an electronic way bill on the GST portal[1]. A person registered under GST is required to provide information about the goods in a specific form (Electronic Way Bill) before beginning the movement of goods with a consignment value of more than Rs. 50,000. (e-way bill).

When will the E-Way Bill be issued?

When goods with a value more than Rs 50,000 are transported in a vehicle or conveyance, an E-Way bill is created with respect to a ‘supply’. Since the “supply” came from an unauthorized source, in this particular situation, any one of the following might function as a supply:

  • A supply that was supplied for payment in the normal course of business.
  • A supply provided for a consideration (payment) that may not be in the regular course of business.
  • An unconsidered supply (without payment).

Supply is often used to mean:

  • Payment was received after the sale of goods.
  • For instance, branch transfers
  • When goods are used as payment rather than currency, bartering or exchange takes place.

For all of these transactions, the central hub must produce Electronic Way Bills. The Electronic Way Bill must be created for the following goods even when the total value of the shipment of Goods is less than Rs. 50,000:

  • Inter-State Transfer of Goods from the Principal to the Job-Worker by Principal/Registered Job-Worker
  • Transporting Handicrafts Across States Without Being Required to Register for GST

What are the Advantages of an e-way bill?

There are several advantages to using the Electronic Way Bill system. Such as:

  • The flow of goods should be streamlined, because the checkpoints have been removed, the turnaround times for trucks should be increased. As a result, will benefit the logistics sector by cutting down on travel time and costs while simultaneously boosting travel distance.
  • Electronic Way Bill generation technology that is simple to use. The need to physically go to the E Way Bill department in order to obtain an E-Way Bill is eliminated, which is the primary aggravation of the current system. The Electronic Way Bill may be quickly created online.
  • As the whole system is online, tax avoidance is not permitted.

How exactly does the e-way bill system operate?

Everyone who is required to comply with the Electronic Way Bill must first register on the shared site. The electronic way bill might then be produced. All three parties will have access to a specific e-way bill number when the Electronic Way Bill is generated on the shared site.

  • The businessperson,
  • The recipient and
  • The Transporter

The other party may see the Electronic Way Bill created against their GST IN after completing Part A of Form GST EWB-0 1 on the same site.

The person who received the Electronic Way Bill is now responsible for confirming whether or not the goods was accepted. The person should be acknowledged with the fact that if he does not express his acceptance or rejection of the conditions within 72 hours of the establishment of the e-way Bill or the time of delivery of the goods, whichever comes first, it will be presumed that he has accepted the terms.

When an Electronic Way Bill does is not needed?

E-way invoices are not required in all circumstances under the GST rule. According to Rule 138 of the Central Goods and Services Tax Act, a person may take part in the following transactions without an e-way bill:

  • When such a transaction related to supply of goods, is not carried out while the vehicle is in motion.
  • Goods brought to an Inland Container Depot (ICD) for customs clearance are not included.
  • Packages are hermetically sealed and subjected to inspection by customs authorities while they are in transit.
  • A Customs Bond was used in the transfer of the shipment.
  • Defense structures regulate the movement of goods.
  • Shipping and transporting empty shipping containers
  • When the government provides this service, it is often done so by rail.
  • When the entire value of the cargo is less than Rs. 50,000.
  • When the total distance travelled to get an accurate weight is less than 20 kilometres. Yet, in this particular scenario, a delivery challan is also required.
  • According to the requirements mentioned in the annexure to Rule 138 of the GST Rules, 2017
  • The creation of an electronic way is not required in the following situations:
  • Where LPG is carried for domestic supply.
  • The Department of Post is responsible for the delivery of packages that include mail.

State-Wise E-Way Bills: Rules and Limitations

The implementation of the Electronic Way Bill system has resulted in significant advancements that have significantly improved the effectiveness of freight transportation. The uniformity with which the states and territories must comply is a major factor in the overall development of the nation’s tax system.

Nonetheless, individual states have the ability to enact laws that provide them further latitude in this area. For instance, the 50,000 INR entry barrier has been raised to 1 Lakh INR in Tamil Nadu. The threshold has also been lowered to 1 Lakh in Bihar and Delhi.

There are a number of exemptions that are specific to each individual state, such as the fact that transporting goods inside the state of Jammu and Kashmir is not required to have an electronic way bill. Jammu and Kashmir is not one of the states that has asked for this exception.

How to produce an E-Way bill Through a Portal?

Since it is increasingly necessary to transport high-value goods, the government has shortened the process of creating an Electronic Way Bill. Continue reading to have a complete knowledge of each component of this therapy.

Step 1: Log in to the platform by heading to the E-way bill website.

Step 2: Choose “Create New” from the main menu of the E-Way Bill application.

Step 3: A brand-new form will load up on your screen at this point. In every field, the GSTIN numbers of the sender and recipient must be supplied.

Step 4: On the second page, you will need to fill out all of the needed information on the goods and the shipping.

Step 5: To generate the bill, click the “Submit” button.

Through the Electronic Way Bill website, you may also sign up for the GST e-way bill manufacturing system. Please go back and look at the stages listed below if you want to have a better understanding of this method:

  1. Go to the e-way bill gateway and choose “E-Way Bill Registration” from the menu that appears.
  2. finish filling out the form by inputting all of the necessary information and then clicking the “submit” button.
  3. Provide the needed information, such your name, the name of your business, your address, and so on.
  4. To complete the authentication process, you must choose the checkbox labelled “Verify OTP.”
  5. Make sure that your GST IN and registered telephone number are current. Upon the completion of this procedure, you will be needed to obtain a username and password in order to produce e-way invoices in accordance with the instructions given above.

The GST system also requires transportation companies to register and supply the necessary corporate information.

After confirming the information that was provided by the transporter, the system issues them a transporter ID and privileges. Using the “enrollment for transporters” option on the Electronic Way Bill interface, any transporter may sign up.

Penalties for violation with the Electronic Way Bill’s requirements are described in full in Rule 138 of the CGST Rules, 2017 and are stated in the CGST Rules. In accordance with Section 122 of the Central Goods and Services Tax Act, 2017, a taxable person who takes part in such a transaction without the necessary documentation, such as an Electronic Way Bill, is subject to pay a penalty of Rs. 10,000 or the tax that was avoided as a result of their actions.

If the consignment and the conveyance are kept or carried in violation of the CGST Act, 2017, while the consignment is being transferred, they may be seized.

Mobile E-Bill Generation through SMS

You may create an Electronic Way Bill in one of two ways: by completing the procedures outlined above, or by sending a text message to the appropriate number. Those who only make purchases sometimes may find the second choice to be more beneficial.

In order to produce an SMS Electronic Way Bill, you will need to make sure that your cell phone no. is added to the website. To make use of this feature, choose “SMS” from the menu.

You should be able to produce an Electronic Way Bill right away after correctly registering the phone no.

E-Way Bills’ Legal Status

The amount of time and distance that the goods must travel determines the validity of an e-way bill. For instance, the Electronic Way Bill is only valid for one day if the goods can be delivered on that day. Yet, the bill is still effective under circumstances in which travel may take longer.

If the distance that has to be travelled is less than 200 kilometres, an Electronic Way Bill is only valid for that day. The validity of the bill will be extended by one additional day for every amount exceeding that range.

What Information and Documents Are Necessary to Raise an E-Way Bill?

You will need the following papers in order to produce an electronic way bill via the use of the website or the SMS service:

  1. Invoice for the transaction
  2. Identification of the transporter
  3. Vehicle Identification Number
  4. Format of the Electronic Way Bill

There are two main parts to an Electronic Way Bill:

Part A

Form EWB 1 has to have all of the necessary shipping information filled out, including the invoice and the sort of object that is being shipped.

In order to correctly fill out the form, you will need the following information available to you at the time of completion:

  1. A GSTIN belonging to the recipient (Goods and Services Tax Identification Number).
  2. The postal code and delivery address of the parcel.
  3. Check the price of the goods using the challan number and the invoices.
  4. The code for the transported items in the Harmonized System of Nomenclature (HSN) must also be provided.
  5. The purpose for the travel, as well as the number of the document.

Conclusion

The E-way bill that is part of the GST regime has made it feasible to completely digitize the antiquated paper records that are part of the VAT system. This change increased the openness of the documents and forced taxpayers to retain accurate records. Yet, the implications might be severe, including substantial fines, the confiscation of goods, and even the seizure of cars, if any party that is required to issue an Electronic Way Bill fails to do so. Be careful to register ahead of time and provide your E-way bill in order to prevent any unfavorable impacts from occurring.

Also Read:
Deep Understanding On The Government Working Towards Tech For E-Way Bill
Guide To E-Way Bill Under GST Regime Specifying Rules & Regulations

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