Linkage of Eway Bill With GST Returns

Linkage of Eway Bill With GST Returns

Eway Bill Reconciliation | Eway Bill Format | Eway Bill Format
15 Sept 2020
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The eway bill provisions had primarily targeted a single national-level eway bill, which will be used by suppliers and transporters of goods all across the country. Till this national e-way bill was ready, the States were authorized to continue their current e-way bill systems. However, the GST Council realized that this was causing an unnecessary hassle to the inter-State movement of goods, which ultimately prompted the need for an earlier implementation of the GST e way bill.

Soon, businesses will receive notices/queries seeking explanations for discrepancies for data reported in the GST returns vis-à-vis the e-way bill portal. Although there is no link between the GST e way bill and GST return portals, the government has put forth clear expectations based on the recent cases of notices issued to businesses for differences in the data in GSTR-3B and GSTR-2A returns. The extensive quantum and nature of data reported in GSTR-1 vis-à-vis and requirements for issuance of eway bills, it becomes essential for businesses to prepare themselves in advance with GST eway bill reconciliation of both the databases.

Points to Consider during GST eway bill reconciliation of data with GST returns:

1. Any differences in the details mentioned on both the portals would need to be addressed based on back-up documentation.

2. The requirement for issuance of Eway bills only applies to the movement of goods over and above a threshold limit. In contrast, the data declared in GSTR-1 includes all the supplies regardless of any threshold.

3. There may be scenarios where e-way bills will be generated for the movement of goods on delivery challans; these details of supplies will not be reported in GSTR-1.

4. There is no need to issue e-way bills in case of a supply of services, whereas the same conditions to be reported in GSTR-1.

5. The state-specific requirements, such as different threshold limits and notified products for which e-way bills is will result in further complications.

6. Assigning roles for the issuance of eway bills to ‘transporters’ and ‘consignees’ would make reconciliation even more time-consuming.

7. The other concern is the reconciliation of the value of goods supplied considering the credit notes issued later by the supplier to view the discounts, deficiency, etc. for the customer.

8. Lastly, the possibility of linking e-way bills data with the turnover of a business as a whole cannot be ruled out. Businesses need to prepare themselves and find out whether technological intervention is required to be able to sync reports with the GST database.

Know about online GST registration process and fees.

Key facts about the generation of an Eway bill

● GST registered businesses, or individuals can generate an Eway invoice if the goods are being transported to or from a registered person.

● If the value of transported goods is less than Rs 50,000, the creation or carrying a GST e way bill is optional when. Having a GST e way bill is mandatory if the value of transported goods is more than Rs 50,000.

● Registered businesses under the Composition scheme are also required to generate eway bill; the rules for the generation of the amount are the same as in the case of a GST registered person.

● In case the supply of goods is coming from an unregistered person to a GST registered person or business. The GST registered company or person is required to ensure that all required compliance under the GST Act is met.

● Transporters are required to generate e-Waybill in case the supply of goods is taking place by railways, road or air, etc. and the supplier does carry any GST e way bill. To generate a GST compliant Eway bill, transporters are first required to register for a Transporter ID.

GST e way bill Format

The Eway Bill format in GST comprises two parts – Part A and Part B. The Part A of Eway Bill in Form EWB 01 aims to collect the details of the consignment, usually the invoice details. Accordingly, the following information needs to be captured.

●  GSTIN Number:

Enter the recipient GSTIN number of

● Place of Delivery:

Now mention the area pin code where goods are delivered.

● Invoice or Challan Number:

The Invoice or Challan number against which the goods are being supplied.

● Value of Goods:

 Fill in the consignment value of the goods.

● HSN Code:

 Enter the HSN code of transported goods. For turnover of up to INR 5 crores, the first two digits of HSN code are required. If it exceeds INR 5 crores, the four digits of the HSN code needs to be mentioned.

● Reason for Transportation:

The reason for transportation is pre-defined, and you need to select the most appropriate option from the list.

● Transport Document Number: 

This indicates either one of the Goods Receipt Number, Railway Receipt Number, Airway Bill Number or Bill of Lading Number.

In Part B of Form EWB 01, you need to mention the number of vehicles with transported goods. The transporter will file this in the common portal. An E-way bill is mandatory for businesses that deal in the movement of goods from one place to another. Hence business owners must know the importance of generating an eway bill for smooth operations. The same way at Finserv MARKETS, we understand businesses and their requirements. With a business loan, you can get the financial assistance wherein you don’t have to pledge any security and can avail up to 30 lakhs with minimal documentation, quick approval and disbursal of loan. Hurry!! Download the Finserv MARKETS App to apply for a business loan.

Know about the impact of E-way bill on Indian logistics industry.

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