In this article I will be discussing the provisions of E-Way Bill under GST. I will be covering the following points here:
- What is an E-Way Bill?
- When to generate an E-Way Bill under GST?
- Format of E-Way Bill under GST
- Who is required to generate E-Way Bill?
- Validity of E-Way Bill
- Cancellation of E-Way Bill and
- Other Misc provisions
So if you too have the above questions in your mind then read along.
Also Read: Works Contract under GST
1. What is an E-Way Bill?
A Way Bill is a document which is needed to be carried by the transporters. It contains the details of the goods being transported and the parties involved in the transportation of the goods (i.e. the buyer and the seller).
It furnishes the information of the movement of goods to the tax authorities to check tax evasion and illegal smuggling of goods.
Under GST the way bill will be in electronically generated and thus the name E-Way Bill.
2. When to generate an E-Way Bill under GST?
The Provisions of E-Way Bill under GST are contained in Rule 138 of CGST Rules, 2017. The provisions under this Rule were notified by the Notification No.27/2017 – Central Tax dated 30th August, 2017.
Sub Rule (1) of Rule 138 states that
- whenever there is a movement of goods
- of value exceeding Rs 50,000
- in relation to a supply; or
- for reasons other than supply; or
- due to inward supplies from an unregistered person
an E-Way Bill is to be generated before the commencement of movement of goods.
However, an E-Way can also be generated if the value of the goods is upto Rs 50,000 (optional).
3. Format of E-Way Bill under GST
E-Way Bill has to be generated in Form GST EWB-01 from the common GST Portal. There are two parts of this form- Part A and Part B as shown below.
As you can clearly see, part A contains the information relating to the goods being transported and Part B contains the information of the vehicle transporting the goods.
4. Who is required to generate E-Way Bill?
Any Registered person who is either the consignor (sender) or the consignee (receiver) of the goods can generate an E-Way Bill under GST. However, there are some additional points to be noted which are:
Goods not transported through road by a transport agency: If the registered person generating the e-way bill (either consignor or consignee) is transporting the goods in his own or hired conveyance or by railways or by air or by vessel then he will have to fill both Part A and Part B of the Form GST EWB-01.
Goods are handed over to a transporter for transportation by road: The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.
Consignor or Consignee did not generate E-Way Bill: Where the consignor or the consignee has not generated E-Way Bill and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate E-Way Bill in FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan.
Movement of Goods caused by Unregistered Person: Where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 in the same manner stated above.
Upon reading the above points the following can be concluded:
- An E-Way Bill under GST can be generated by a registered consignor, registered consignee, a transporter and also an unregistered person causing movement of goods.
- E-Way Bill must be generated before the movement of the goods has started.
- E-Way Bill can be generated even if the value of the consignment is less than fifty thousand rupees
5. Validity of an E-Way Bill
An e-way bill shall be valid for the period as mentioned in the Table below from the date and time of generation of e-way bill depending on the distance the goods have to be transported, as mentioned in column (2) of the said Table:
Please note that a day will be counted as 24 hours from the time at which the E-Way Bill was generated.
6. Cancellation of E-Way Bill
An E-Way Bill can be cancelled electronically on the common portal within 24 hours of its generation. However, it cannot be cancelled if it has been verified in transit.
7. Other Misc Provisions
a. Where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of such conveyance in E-Way Bill.
b. Where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.
c. In cases where supply is made by an unregistered person to a registered person, the registered recipient will have to fulfill all compliances as if he was the supplier.
d. Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
e. In case a transporter is transporting multiple consignments in a single conveyance (i.e. one single vehicle) then he may generate a consolidated way bill in Form GST EWB-02 from the common portal. GST EWB-02 will contain all the e-way bill numbers of the consignments transported in the vehicle.
If you want to watch a detailed tutorial about e-way bill under GST in Hindi then check out the video below:
So that was all about E-Way Bill under GST. Hope you get a clear understanding from this article. Thanks for reading! If the effort deserves, please consider sharing this article with your friends and family. And do not forget to subscribe to our email newsletter.