In the world of modern commerce, the seamless movement of goods is essential for businesses to thrive. To facilitate this, governments worldwide have introduced electronic systems to streamline the transportation of goods, and India is no exception. One such crucial tool in India’s taxation landscape is the E-Way Bill. In this blog, we’ll delve into the key aspects of the E-Way Bill, including what it is, when and who should generate it, scenarios where it’s not required, its implementation status across India, the process to generate it, its validity, and the necessary documents.
What is an E-Way Bill?
The E-Way Bill, short for Electronic Way Bill. It is required for the movement of goods, especially when the value of the consignment exceeds Rs. 50,000. This electronic permit contains key information about the goods, consignor, recipient, and transporter. It is generated through https://ewaybillgst.gov.in and serves as proof of compliance during transit.
When to Generate an E-Way Bill?
E-Way Bills are mandatory for both inter-state and intra-state movement of goods. For inter-state supplies, bills were enforced from April 1, 2018.
E-Way Bills are to be generated under various circumstances:
- In relation to a ‘supply’ of goods, whether for consideration or not.
- For reasons other than a ‘supply,’ such as a return.
- Due to inward ‘supply’ from an unregistered person.
Who Should Generate an E-Way Bill?
The responsibility of generating the E-Way Bill falls on the following parties:
For Registered Person– If moving goods worth more than Rs 50,000 to or from another registered person, then E-Way Bill is mandatory. Even if the goods are worth less than Rs 50,000, they can still choose to make an E-Way Bill.
For Unregistered Person– Unregistered persons are also required to generate E-Way Bill. However, if an unregistered person supplies to a registered business, the one receiving the goods must ensure compliance.
For Transporters – If the supplier hasn’t made an E-Way Bill, transporters moving goods by road, air, rail, etc., also need to make an E-Way Bill.
Cases When E-Way Bill is Not Required
- Transportation of goods worth less than Rs. 50,000
- Exempted Goods: If the transported items are exempt from GST.
- Specific Goods like specified handicrafts, do not require an E-Way Bill.
- The mode of transport is non-motor vehicles- For instance, railways.
What are the contents of an E-Way bill?
An electronic way bill (E-Way bill) consists of two primary elements:
- Part A:
- Transporter & Recipient GSTIN
- Place of delivery indicated by the PIN Code.
- Invoice or Challan number along with the date of issuance.
- Value of the transported goods.
- HSN code related to the goods.
- Part B:
- Transporter mode, distance, vehicle number, vehicle type, & including their vehicle number are required if the mode of transport is road.
- If the mode of transport is other than road then specify mode of transport, distance, transporter document number, document date & vehicle type.
- These two components collectively form the E-Way Bill, facilitating the documentation and tracking of goods in transit.
Status of Implementation Across India
The E-Way Bill system has been adopted by all states and Union Territories, making it a PAN-India initiative for seamless goods movement. It has seen gradual progress across different states. Some states have even introduced modifications to thresholds and rules like Tamil Nadu.
How to Generate an E-Way Bill?
Generating an E-Way Bill is a straightforward process. It can be done electronically through the E-Way Bill portal or by SMS. The bill is then assigned an E-Way Bill Number (EBN), and the details are accessible to the supplier, recipient, and transporter. Our step-by-step guide will walk you through the process, ensuring a smooth experience.
The issuance of the bill can originate from the E-Way Bill platform. Gain proficiency in creating an E-Way bill using the E-Way Bill system. Once generated, an E-Way bill number (EBN) will be allocated to the supplier, recipient, and the driver involved in the goods’ transportation. As an alternative, if internet access is unavailable, the supplier can generate and generate E-Way Bills via SMS.
To initiate this procedure, the supplier needs to log in to the E-Way Bill portal and opt for the ‘For SMS’ alternative under the ‘Registration’ section on the dashboard.
Subsequently, the particulars of the produced E-Way Bill will be accessible on the shared portal for the recipient. The recipient of the supplied goods holds the responsibility of reviewing and responding to the E-Way bill on the portal. If no action is taken within a 72-hour timeframe, the E-Way bill is automatically deemed as ‘accepted’.
Validity of E-Way Bill
- If the distance is less than 200 kilometers, the E-Way Bill is valid for 1 day.
- For every additional 200 kilometers or part of it, the validity is extended by 1 more day.
- If the distance is less than 20 kilometers, the E-Way Bill is valid for 1 day.
- For every additional 20 kilometers or part of it, the validity is extended by 1 more day.
- The E-Way Bill’s validity can be extended either eight hours before it expires or within eight hours after it expires.
Documents Required to be carried by person in-charge of transportation of goods
When transporting goods, certain documents must be on hand:
- The invoice, bill of supply, or delivery challan.
- Transporter ID for Part A (for road transportation).
- Transport document number and date (for rail/air/ship transportation).
- A copy of the E-Way Bill or EBN, in paper
Penalties Associated with E-Way Bills
Failure to produce a valid E-Way Bill during transit can result in a penalty of Rs. 10,000 or an equivalent amount of tax evaded, whichever is higher. Adhering to E-Way bill regulations is crucial to avoid these financial implications.
The E-Way Bill system is a crucial step towards achieving a more efficient and transparent logistics ecosystem. By understanding what it is, when and who should generate it, when it’s not required, its implementation status, the generation process, its validity, and the required documents, businesses can ensure smooth and compliant movement of goods across India. Stay updated with the latest regulations and make the most of this digital tool to enhance your business operations.
How can LogiTax help you?
With LogiTax, Seamlessly schedule E-Way Bills in advance, ensuring adherence to transportation regulations and minimizing last-minute delays. The automated distance calculation function accelerates E-Way Bill generation. The platform also intelligently identifies exempted documents, eliminating manual identification efforts. Easily locate invoices without E-Way Bills, ensuring full compliance and averting potential penalties. It Effortlessly identifies defaulting invoices for swift resolution. Stay proactive by tracking E-Way Bills nearing expiration and ensuring timely renewal. Additionally, LogiTax provides over 30 comprehensive reports for detailed insights into E-Invoice and E-Way Bill data, aiding in monitoring, auditing, and effective compliance management.
The information provided in this presentation does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This presentation is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi-judicial authorities may not take a position contrary to the views mentioned herein.