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20 Jan 2018

NOTE ON E-WAY BILL UNDER GST

NOTE ON E-WAY BILL UNDER GST

What is an E-way bill?

The e-way bill is an electronic way bill which is generated for movement of goods of Rs. 50,000 or above under GST regime for transportation of goods beyond 10 kilometres for intrastate(effective from - 01.06.2018) as well as interstate movement(effective from - 01.02.2018).

E-waybill can be generated online from the common portal – www.ewaybill.nic.in. After generation of e-way bill, an e-way bill number (EBN) will be allocated to the supplier, recipient and transporter. Generation of e-way bill is compulsory from 1st February, 2018(Notification No. -74/2017 dated 29thDec 2017). Generation and general procedures for E-waybills are regulated by the CGST Rule 138.

Who should generate the E-way Bill?

  1. Registered Persons- A Registered person or the transporter is required to issued e-waybill for:
    • movement of goods for the purpose of supply;
    • for reasons other than supply and
    • due to inward supply from an unregistered person.

One may choose to generate and carry e-way bill even if the value of goods is less than Rs. 50,000.

  1. Unregistered Person-Unregistered Persons are also required to generate the E-way Bill. But, ifsupply is made by an unregistered person to a registered person, the recipient will have to ensure all the compliances are met as if they were the supplier. Thus, recepient shall be required to issue E-waybill in case goods are received from an Unregistered Person.

 

  1. The transporter-Transporters carrying goods by road, air, rail, etc. are required to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Documents required for generation of E-way bill

  1. Invoice/ Bill of Supply/ Challan related to the consignment of goods.
  2. In case of transport by road – Transporter ID or Vehicle number.
  3. In case of transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document.

Procedure for E-way Bill

Step-1: Registration/Login on the E-way bill portal

The manual for operating the e-waybill portal is available at:

http://164.100.80.180/ewbnat10/Documents/usermanual_ewb.pdf

Step-2: Generation of Form EWB-01 – Part-A

The person initiating the transport has to give the information of the goods on the GST common portalwww.ewaybill.nic.in. The E-way bill can be generated from the GST portal by logging into the GST account. The following details must be given on the GST portal for the generation of the E-way bill.

  • GSTIN of Recipient
  • Place of Delivery
  • Invoice or Challan Number
  • Invoice or Challan Date
  • Value of Goods
  • HSN Code
  • Reason for Transportation
  • Transport Document Number

Step-3 Details of the transport– Part-B

In this step the details of the transportation are to be given in the form EWB-01 – Part B. If goods are transported by the supplier or customer in own vehicle or a hired vehicle or by railways or air or ship, Part-B for information about the transport vehicle can be updated by the supplier itself.

In case the transport is changed in the transit, the transporter will have to update the details of the conveyance. Following details/ documents will be required for the form B.

  • Vehicle Number
  • HSN Code
  • Transport Document number indicating 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 invoice where the consignment pertains to an import.

After the complete generation of the E-way bill an e-way bill number (EBN) will be given.

Procedure to create E-way for Import purchases is:

  1. Login to the E-way bill account.
  2. Click on Generate E-way Bill.
  3. Select the Inward.
  4. Select Import.
  5. Document select Bill of Entry.
  6. Type Bill of entry details.
  7. In supplier name type name of seller
  8. E-way No. will be given

Procedure to create E-way for Export is:

  1. Login to the E-way bill account.
  2. Click on generate E-way Bill.
  3. Select the Outward
  4. In the ‘From’ section details enter the details
  5. Enter the transporter details
  6. E way Bill no. will be given

Validity of e-way bill

E-way bill generated on the GST common portal will be valid across all States and Union Territories. An e-way bill generated for a distance of upto 100 kilometres will be valid for one day. For every 100 additional kilometres, the e-way bill would be valid for an additional day. Also, a Commissioner through notification can extend the validity period of e-way bill for certain categories of goods.

Distance

Validity Period

0-100 km

One day

For every 100 km/ part thereof

One additional day

 

The E-way bill may not be generated for the following reasons:

  • When the goods are transported for the distance of less than 10 km in the same state from the place of business of consignor to the place of consignee
  • When the goods are transported for the distance of less than 10 km within the state from place of business of consignor to the place of business of the transporter for further transportation
  • When the goods are transported through non-motorised conveyance
  • Where the goods are being transported from the port, airport, aircargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.

Tracking by RFID

The concept of RFID is mentioned under the official notification of GST act. The E-waybills so generated are to be tracked by RFID on the vehicles. The commissioner may by notification, require the class of transporters to obtain a unique RFID and get RFID embedded on to the conveyance and mapped to the E-way Bill before the movement of the goods.

RFID readers will be installed at places where verification of movement of goods is required. Verification will be done through RFID readers where e-way bill is mapped with RFID. RFID uses electromagnetic fields to automatically identify and track tags attached to objects.

Importance of E-waybill:

  • E-way Bill brings in a uniform rule which will be applicable throughout the country for movement of goods. Thus as step towards hassle free movement of goods across India.
  • The E-way Bill mechanism ensures that goods being transported comply with the GST Law as data regarding E-way bill will be automatically updated on the GST portal.
  • It is an effective tool to track movement of goods and check tax evasion.
  • As the e-way bill is made through the common portal, it will speed up the process of verification and allowing for faster movement of goods.

Written by Mr. Dipankar Majumdar

Advocate

ALA Legal