Eway Bill Integration With GST

The concept of E-way bills was introduced on April 1st, 2018. Since its introduction, it has been a mandatory document that needs to be carried by those travellers who are tasked with transporting goods worth ₹50,000 or more from one Indian state to another. Every GST-registered person must generate an E-way bill for goods which are crossing state  borders and fall under scope of the GST tax regime. An E-way bill serves as proof of the fact that the goods being transported comply with the GST norms. Additionally, E-way bills help relevant authorities track the movement of goods in real time and spot possible tax evasion attempts.

How are E-way Bills Currently Generated

E-way Bills are currently generated by suppliers or other kinds of relevant individuals through the E-way bill portal. The registered taxpayer will have to log on to the portal with their credentials and fill in the relevant information regarding the goods, their supplier, the type of supply, their place of origin, their destination and the vehicle that will carry them.

Note that if the value of the consignment is ₹50,000 or more, the generation of an E-way bill is a must if they need to be transported from one state to another. If there are multiple consignments in a single vehicle, an E-way bill must be generated for all of them, provided they are worth ₹50,000 or more.

The goods may be transported from one state to another due to the following reasons:

• Outward supply of goods from state A to B

• For reasons other than supply of goods

• Inward supply of goods from a person who is not a registered taxpayer

There are two additional circumstances under which a supplier must generate an E-way bill, even if the value of goods is less than ₹50,000. They are:

• Inter-state movement of goods to a job-worker by a principal or a GST registered job-worker

• The inter-state transport of GST-exempt handicraft goods by a dealer.

Read our detailed article on the Step by Step process of E-Way Bill Generation. 

What are the Changes Introduced in the New Returns System With Regards to E-way Bill

Under the New Returns System, the government has integrated E-way bills with GST. This essentially means that if a registered tax person has not filed his or her GST returns for two consecutive tax periods, they cannot generate E-way bills under their name. In the case of dealers, if they do not file their GSTR-3B or GST-4 returns, their E-way bill ID will be blocked. Note that there is no other change in the manner in which E-way bills are generated.

What is the Link Between the E-invoicing System and E-way Bill Generation

As per the old system, a registered taxpayer had to fill in invoice details manually while generating E-way bills and had to maintain two different user IDs for the E-way bill portal and the e-invoicing portal. But now, since the introduction of the e-invoicing system, the taxpayer can log onto both the portals with a single user ID.

Additionally, as long as the E-way bill details fed in the e-invoicing portal matches the data entered while generating E-way bills on the main E-way bill system, the invoice-related information will auto-populate the relevant areas of the E-way bill while generating it. This system has been put into effect to make it easier for the taxpayers to generate E-way bills and make relatively lesser errors.

At Bajaj Markets, one can learn all that there is to know about E-way Bills, GST and many other related topics. Bajaj Markets also helps people acquire loans, credit cards and a host of other financial products.