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E way bill under GST ACT, 2017

News & Blog

E way bill under GST ACT, 2017
E way bill under GST ACT, 2017

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E way bill under GST ACT, 2017

Background

As the name suggests e-way bill is the bill that is generated electronically for people who are going on the way. Transport is an important and integral part of most businesses. Whether the industry is large or small, transportation of goods is involved. Therefore the government also generates a lot of revenue from those transporting goods by applying fees for easy transport of goods from one place to another. However, there are certain conditions applied before the bill is applicable.

The government has designed a portal for generating bills. It is only applied to the registered GST person transporting goods of more than Rs 50,000 of value. If the traveling vehicle is traveling without the bill then it will be stopped midway. Every time an E-way bill is generated it provides the transporter, supplier, and recipient with a unique E-way Bill Number (EBN).

Conditions for issuing E-way bill

There are certain conditions under which the E-way bill is generated. They are as follows;

When the moving vehicle is transporting goods of Rs 50,000 or more value, e-way bill is required. The invoice can be of supply made for payment in the course of business or it can be a supply made for payment without being in the course of business.

However, there are instances when in spite of the transported goods value being less than Rs 50,000 e-way bill is charged.

As in the case of interstate transfer of handicraft goods that are exempted from GST and when the goods are transferred interstate by the principal to the job worker to the registered job worker

 

When the conveyance of good is done through non-motor vehicle no e-way bill is required

If the traveled distance is less than 10 km within the same state from the place of business to the consignee then no e-way bill is required

If the traveled good travels a distance of 10 km within the same state from a place of business to the consignor to be further transported then also e-way bill is not warranted

No e-way bill is warranted if the goods are being transported from air cargo complex/port/ airport/inland container depot from land custom stations t be cleared for customs.

Documents required

The transporter of the goods should be carrying the following documents;

·       Challan/invoice/bill of supply of the goods to be transported

·       Transporter ID, vehicle number if goods are transported via road

·       Transporter ID, date of the release of the document, transport document number if the consignment is transported through air, ship or rail.

E-way bill validity

There is a different period of validity for the different bills based on distance traveled and mode of transport. Following are different calculated validity period.

·       For a distance of less than 100 km goods transported by anything other than over-dimensional cargo validity period is 1 day and if another 100 km is added than EWB validity increases to 1 more day

·       For distance, less than 20 km by over-dimensional cargo EWB validity is 1 day and it increases to one more day if another 20 km is added.

There is also a provision of extending the validity period before till after 4 hours of expiry of the bill.

E-way bill generator

There are two scenarios where the e-way bill can be generated

1.     GST registered Person-

a) When the goods are transported by a registered person either by road or ship or air then the consignor or consignee should generate the bill electronically by a common portal in the form of GST EWB 01.

b) When the goods to be transported are handed over to the transporter, by a registered person, without generating the e-way bill then the responsibility of generating a bill falls upon transporter. The information about the transporter is furnished by the registered person in Part B of the Form GST EWB. This will allow the transporter to generate the e-way bill.

2. By Unregistered person

a)    When the person transporting goods is not registered but is transporting goods through transporter then the e-way bill needs to be generated by either a transporter or unregistered person by filing Form GST EWB-01.

b)   When the goods are transported by the unregistered person to the registered person and the registered person is known to the unregistered person then the consignment will be believed to be moved by the registered person and e-way bill generation would have to be carried out either by transporter or registered person.

Frequently Asked Questions (FAQ)

Q. What are the responsibilities of the Transporter?

Ans. As per the GST norms 2017, a transporter carrying goods from one place to another will need to carry an e-way bill generated by a registered person for transportation. If the e-way bill is not generated before handing over the goods then the transporter needs to generate the e-way bill before the onset of goods movement.

If the transporter is transporting multiple consignments then he needs to ensure the generation of consolidated e-way bill by entering the serial number of the individually generated e-way bill at the common platform in the Form GST EWB02.

 

Q .What is the penalty of transporting goods without generating the e-way bill?

Ans. If the supplier of the goods and its transporter failed to generate the e-way bill before the onset of its movement either a fine of Rs 10,000 or tax assumed to be avoided is charged, whichever is greater. Also, there is a possibility of vehicle seizure or goods confiscation.

Q. What are the applied e-way bill conditions for transferring goods from one vehicle to another while in transit?

Ans. If the transfer of goods takes place from one vehicle to another while in transit, before the movement then the transporter needs to change and update the vehicle details on the e-way bill by using a common portal using Form GST EWB 01.

However, if the transport is taking place within the distance of 10 km within the state from the place of business to the transporter then to the consignee then no update on vehicle details are required.

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