E-way Bill Rules and Compliances- Finserv MARKETS

E-way Bill Rules and Compliances- Finserv MARKETS

Learn more about e-way bill rules and compliances

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24 Feb 2021
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An electronic way bill, popularly known as e-way bill is a valid electronic document generated from the e-way bill portal to certify the movement of goods between and within states. It is a compliance mechanism under the Goods and Services Tax (GST) that a seller/consignor shall adhere to before the goods are transported. In October 2020 alone, 641 lakh e-way bills were generated making it an all-time high record since its implementation two and half years ago1. Before transportation of goods, the seller/consignor shall upload information on the movement of goods on a digital interface and generate an e-way bill on the GST portal. An e-way bill usually contains the following information:

  • Consignor/Seller Name -Any individual who is the supplier of goods and initiates the movement of goods.

  • Consignee/Recipient name - Individual who is supposed to receive the goods.

  • Origin of consignment - It is the place of initiation of movement of goods.

  • Delivery Address and details -- It Destination where the goods are to be delivered.

  • Route -- It Distance covered between the origin and destination of goods.

When an e-way bill is generated, it is made available to the supplier, consignee, and transporter.

E-way Bill Rules and Compliance

The statutory requirement of an e-way bill falls under the ambit of Section 68 of the CGST Act & Rule 138 of the CGST Rules, 2017.

According to these rules, every registered individual under GST, and involved in the commencement of the movement of goods whose value exceeds Rs. 50,000 is required to furnish the details of the goods in an e-way bill proforma before the goods can begin to get transported.

However, there are certain circumstances as mentioned below, when an e-way bill needs to be compulsorily generated even when the consignment value does not exceed Rs. 50,000.

  • During an interstate transfer of goods sent by the principal to the job worker located in other states. The e-way bill, in this case, is generated by the principal or registered job worker

  • During an interstate transfer of handicraft goods by an unregistered dealer under the GST

In case of a supply of goods initiated by an unregistered individual to a registered individual, the consignee would have to ensure all the compliances are met as if they were the seller.

Forms for E-way Bill Generation

Form GST EWB-01 is normally used for the generation of the e-way bill when the goods are transported by a registered individual via any mode of conveyance, i.e., by air, rail, road, or vessel.

The form consists of two parts – Part A and Part B

  • Part A contains the details of the supplier, recipient, invoice, items in the invoice along with their HSN (harmonised system of nomenclature) codes and tax rates.

  • Part B mentions the transporter details such as name, transporter ID, date, vehicle name, mode of conveyance, and route distance.

Here is a table that lists down the categories of persons who can fill the relevant parts of Form GST EWB -01:

Movement of Goods by

Mode of Conveyance

Condition

Part of Form GST EWB 01

A registered individual under GST as consignor/consignor (no transporter involved)

Own or Hired conveyance by air, rail, or vessel

Prior to the commencement of movement of goods

Part B

Transporter through transportation by road

Transporter Conveyance

Prior to the commencement of movement of goods

Part A

Transporter on behalf of registered Dealer

Transporter Conveyance

Prior to the commencement of movement of goods

Part B

Unregistered persons (Consignor/Transporter)

Own or transporter’s Conveyance

Prior to the commencement of movement of goods

Parts A & B

Unregistered Persons to Registered persons (the recipient shall fulfil the compliance requirements)

Own or transporter’s Conveyance

Prior to the commencement of movement of goods

Parts A & B

When is an E-way bill generation not essential?

No e-way bill generation is warranted in the following circumstances:

  • Where the goods are transported through manual conveyance such as animal carts

  • For goods that would be transported for customs clearance from customs port, air cargo, or station to an inland container freight depot or station

  • When the movement of goods takes place within an area as notified by a particular state or union territory

  • For transport of tax-exempt goods as specified by respective state/UT GST rules

  • For transport of goods specified in the negative list such as petrol, natural gas, or aviation turbine fuel

Documents Required for e-way bill generation

  • Tax Invoice

  • Supply Bill

  • Delivery Challan

  • Transporter ID along with vehicle number

  • Transport document number specifying the mode of transport

In addition to the above documents, the transporter or person in charge of conveyance must carry a copy of the e-way bill or e-way bill number for verification purposes by concerned officers during the movement of the goods.

Post verification, the concerned inspecting authority shall enter the details of inspection in Part A of Form GST EWB 03 within 24 hours. The final report is collated in Part B of the Form GST EWB 03 within 3 days of the inspection.

Moreover, the transporter can complain, if the transport vehicle has been detained for more than 30 minutes during its physical verification. The relevant details may be uploaded in Form GST EWB 04.

If you own a business, complying with e-way bill rules can ensure swift transport of goods and systematic functioning of your business without any hiccups. In addition to diligent compliance to e-way bill rules, sufficient working capital helps give a massive push to your business, and availing a business loan on Finserv MARKETS could be a viable alternative to secure that extra working capital. On Finserv MARKETS, you can now apply for a business loan at affordable interest rates. The application process is quite simple, hassle-free, and involves minimal documentation.

 

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