E-Way Bill: One Stop Solution

Table of Contents

Businesses involve travel, be it for carrying your raw materials/supplies shifting your business to another location. The approval of the government is important for the movement of goods from one state to another. This permit/approval is called the E-way Bill. Currently, the government has stepped into the digitization process of generating E-way bills completely online.

What is E-way Bill?

Electronic-way bill or E-way bill is an electronic document that generates electronically in the E-way bill portal for the movement of goods from one place to another. In simple terms, it is a permit for interstate and intrastate travel for goods worth more than Rs. 50,000. It contains details of the goods, the recipients, the consignor, and the transporter.

E-way bill is generated electronically via the GSTN on the E-way bill site. The creation of an E-way bill provides you with, a unique E-way Bill Number (EBN) given to the provider, receiver, and carrier. Additionally, the creation and cancellation of E-waybills may be through SMS, Android App, and site-to-site connectivity via API.

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Contents Of E-way Bill

Part A

  • GSTIN of the recipient
  • Place of delivery (PIN Code)
  • Invoice/Challan number and the date of issue
  • Value of goods
  • HSN code
  • Transport document number (Goods Receipt Number /Railway Receipt Number/Airway Bill Number/Bill of Lading Number)
  • Reasons for transportation

Part B

Part B contains the details of the transporter

  • Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number.
  • Place of Delivery shall indicate the PIN Code of place of delivery.
  • Details of bill of entry shall be entered in place of the invoice where the consignment pertains to an import.

Who needs to generate an E-way Bill?

Any individual business owner who deals with carrying goods intrastate or interstate should be well aware of the various rules and regulations of E-way bills.

Unregistered Person
If any unregistered individuals are involved in transportation activities, they must also create an e-Way Bill. When an unregistered person completes a supply transaction with a registered individual, the recipient must verify that all required compliances are followed and all documentation is in order.

Registered Person
When there is a movement of products worth more than Rs. 50,000, a registered individual is required to create an e-way bill.

Transporter
Any transporter needs to generate an e-way bill for carrying a consignment of goods by rail, air, or freight.

GST-E-Way-Bill

When are E-way bills applicable?

When the items move from one location to another are worth Rs.50,000, a registered firm or individual must get an E-way bill. Not everyone requires an E-way bill however, it is relevant in the following cases.

Sales of Goods

Transportation of goods for all other reasons other than supply. For instance, transportation of goods, starting with one branch then onto the next branch/warehouse.

Goods are bought from an unregistered company or individual by an enlisted individual and goods should be moved. In such cases, the registered individual needs to create the e-way bill.

Requirement of E-way bills in all cases, for transportation of goods inside a similar state or union territory, intrastate deals.
The registered company, individual or the carrier might create and carry the e-way bill on his own will regardless of whether the worth of goods is under Rs. 50,000.

Transported goods from business to a place of the carrier for additional transportation and such distance is under 10 km then, at that point, it’s not applicable.

Requirement of E-way bills irrespective of the value of consignment in the following cases:

Goods are sent by someone located in one state to a job worker located in any other State, the e-way bill shall be generated by the one sending, perhaps the owner.
Where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24. The meaning of handicraft for this purpose is as handicraft defined in notification No.32/2017-Central Tax dated 15.09.2017.

How to generate E-way Bills?

  • Go to the E-way bill portal.
  • Log in with your own credentials.
  • Click on the โ€œGenerate newโ€ option, and the menu page will appear.
  • Fill all the required fields.

Select the translation type to “Outward” if you are a supplier

Select the translation type to “Inward” if you are the receiver and enter the supplier and recipient details along with GSTIN, wherever applicable. Some of the fields will be auto-populated after providing a GSTIN number.

  • Fill Product description

Fill Product Name and Description correctly and complete them just as you do it in your tax invoice.

For the Product, enter HSN Code.

Enter the CGST/IGST applicable rates. IGST will be applicable for inter-state transport and SGST / CGST for intra-state transport.

Enter the approx transportation distance, which will determine the validity of the E-way bill.

  • Click on โ€œSubmitโ€

Click the “SUBMIT” button to produce your E-way bill. The E-way bill will show, together with the E-way bill number and the QR Code containing all of the data. Print the copy of the Bill and give it to the transporter, who will carry it until the receiver receives it.

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Exempt Goods from E-way bill

  • Natural/cultural stones or pearls/precious stones.
  • Kerosene Oil under PDS.
  • Liquid petrol gas for the supply of household and non-domestic use.
  • Jewellery
  • Curd, Lassi, Any Milk product.
  • Fresh or Pasteurized milk
  • Fruits
  • Vegetables
  • Animals (Living), Plants, and trees.
  • Animal flesh, meat
  • Salt
  • Rice or wheat flour does not contain a specific brand.
  • Stationery products
  • Unprocessed tea leaves

Times when E-way Bills are not applicable

  • The mode of transport is a non-motor vehicle
  • Transport of goods from Customs port, airport, air cargo complex, or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
  • Transit cargo transported to or from Nepal or Bhutan
  • Goods transported under Customs Bond from ICD to Customs port or from one customs station to another.
  • Movement of goods caused by defence formation under the Ministry of defence as a consignor or consignee.
  • Transport of empty Cargo containers.
  • Goods transported under Customs supervision or under customs seal
  • Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 km, accompanied by a Delivery challan.
  • Transport of goods by rail where the Consignor of goods is the Central Government, State Governments or local authority.
  • Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
    Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.

Transactions that are Exempt

  • In case there is the transfer of goods by Non – motorized vehicles.
  • If the airport, airport, land customs station, and air cargo complex, a container freight station (CFS) for clearance by customs, or to an inland container depot (ICD).
  • Transportation of the goods within the area.
  • Transportation of goods to the Ministry of Defense

Penalties for not generating E-way Bill.

  • For the non-generation of an E-Way bill, the concerned person carrying the goods should pay a penalty of Rs. 10,000 or the equivalent amount of tax evaded (the greater of the two).
  • Seizing or detaining the vehicle that is carrying goods without an E-way bill. The vehicle will be set free only after making the payment of the penalty and tax as issued by the officer. Under this, there can be below mentioned situations:
  • The owner must pay 100% of the tax payable if he wishes to pay the penalty
    If not, the penalty will be equal to 50% of the value of goods.
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