Under the newly introduced GST regime, the transporters are required to carry an electronic or e-way bill at the time of moving the goods from one location to another. It is a mandatory requirement and the transporters, consignors, and consignees must comply with it. This is an online version of the earlier accepted Way Bill that they had to obtain from the VAT authorities. In this case, e-way bill is required for the movement of goods above Rs. 50,000 in value. The government is planning to allow generating or canceling this bill through SMS as well. At the time of generating an e-way bill, a unique EBN or E-way Bill Number will be allocated to the supplier, recipient, and transporter.
When Should An E-Way Bill Be Generated?
Whenever there is a movement of goods in relation to a supply, for reasons other than a supply, or an inward supply from an unregistered person, it needs an e-way bill under the CGST Act.
What Constitutes Supply For the Purpose of E-Way Bill?
The supply for the purpose of generating an e-way bill includes the following:
- If a supply is made for a payment or any other consideration during the course of business.
- If the supply is made for a payment or any other form of consideration even if not in the course of business.
- If a supply is made without any consideration or payment.
The Central Board of Excise and Customs has proposed that an e-way bill should be generated for the supply of goods above INR 50000. It will need an online registration of the consignment and authorities can inspect the same anytime if they suspect a tax evasion. The bills generated on the GSTN portal will be valid for a period of 1-15 days depending on the distance of travel. It may be increased to 20 days for a distance of more than 1000 km.
Who is Liable to Generate E-Way Bills?
This type of bill should be generated for the movement of goods above Rs. 50, 000 from or to a registered person. A registered transporter of supplier can also opt to carry an e-way bill for the goods costing below Rs. 50, 000. Unregistered persons and transporters can also apply for this bill. However, if the receiver is a registered person, it is important to ensure the compliance with the provisions of law in this case.
How to Generate an E-Way Bill:
The e-way bill under GST is generated after a well-defined process. In this regard, the person initializing the movement of goods is required to provide the details of goods to be transported on the GSTN portal. The taxpayers have to log into their GST account and generate Form GST EWB-01 by providing the following details:
- GSTIN of the recipient of goods
- Challan or invoice number
- Challan or invoice date
- Location of delivery
- Worth of goods in INR
- Reason for movement
- HSN code
- TDN or Transport Document Number
You should provide the PIN code of the place of delivery and Goods Receipt Number/ Airway Bill Number/Railway Receipt Number/ Bill of Lading Number for TDN.
After this step, you should provide the complete details of transport in part B of GST EWB-01. When the goods are moved by the customer or supplier in an owned vehicle, the information can be updated by the same person. When goods are handed over to a transporter by the supplier, the supplier needs to provide details for generation of an e-way bill under Part A of this form. Then, the transporter will generate the bill according to the information given by the transporter in Part B. In this scenario, goods can be moved only by providing information in Part A.
In the cases where goods need to travel less than 10 km within the Union or state territory from a supplier’s business location to a transporter, no details of transport are required to be provided by the supplier on the common portal of GST. And, if goods are moved for a distance of fewer than 10 km, the supplier need not provide the details of transport on the portal for generating the e-bill.
These are the details related to GST e-way bill that you should know.