E-Way Bill under GST Rules and Compliance

Under GST, transporters will need to carry an electronic way bill or e-way Bill when moving goods from one place to another. Thus, it is new rule introduced under GST, it is necessary for all transporters to be aware of required compliance. In this article, we cover following topics like what is an e-way bill, who can generate an e-way bill and validity of an e-way bill.

What is an E-way Bill?

E-way bill is an electronic way bill for goods movement in case value of goods is above 50 thousand rupees. This E-way bill can be generated from GSTN portal and every registered taxpayer must need this e-way along with goods transferred.  E-way bill will be generated or canceled through SMS. In case of multiple consignments, transporter needs to generate consolidated e-way bill.

When an e-way bill is generated unique e-way bill number (EBN) is allocated and is available to supplier, recipient and transporter. This document is needed to generate online for transportation of good whether transportation is inside or outside the state. Under GST Regime, E-way bill is compulsory from 1st Feb 2018 in all states. If goods are transferred from one vehicle to another then transporter need to generate new e-way bill.

Who will generate e-way bill?

E-way bill must be generated when there is goods movement of more than Rs 50,000 in value or from registered person. Registered person or transporter must generate bill online and carry e-way bill even if goods value is less than Rs. 50,000. Read Govt will take steps to address concerns of SMEs 

Unregistered persons or their transporters may choose to generate an e-way bill. This means than an e-way bill can be generated by both registered and unregistered persons. However, where supply is made by an unregistered person to registered person, receiver will have to ensure all compliances are met if they were supplier.

Validity of an e-way bill

An e-way bill is valid for periods which are based on distance traveled by goods. Validity is calculated from date and time of generation of e-way bill.  E-way bill generated from GSTN portal in Form GST INS-01 for goods movement has time limit for which it will valid. Validity of an E-way is discussed as follows-

  • If distance is less than 100km is 1 Day
  • If distance is 100km more but less than 300 km is 3 days
  • If distance is 300 km but less than 500 km is 5 days valid
  • If distance is 500 km more but less than 1000 km is 10 days
  • If distance is 1000 km or more is 15days

E-way bill has been generated and period of validity will be counted from time at which e-way bill has been generated and each day shall be counted as 24 hours. If good cannot transported within validity period of e-way bill, then transporter has to generate another e-way bill after updating details in Part B of Form GST EWB 01.

What is supply of an e-way bill?

Here, supply could be any of followings

  • Sale-sale of goods and payment made
  • Transfer-transfer across branch of same business
  • Exchange – when purchasing goods payment made by goods instead of money
  • Supply made for consideration (payment) in course of business
  • Supplies made for consideration which may not be in course of business
  • Supplies without consideration (without payment)

Therefore, e-way bills must be generated on common portal for all these types of movements.

When you must generate an e-way bill

E-way bill has to generated when there is inter-state and intra-state movement of goods in relation to-Also read GST Council cut rates on 150-200 items to file single return

  • Supply
  • Inward supply from an unregistered person
  • Other than supply
  • An e-way bill is need even if goods are transferred from one vehicle to other
  • Consolidated e-way bill is required for multiple consignments.

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