Under GST, the process and procedural aspects for the movement of goods are mentioned in the Eway bill. An Eway bill stands for Electronic Way Bill. A GST registered person is not allowed to transport goods in a vehicle if the value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without generating an e-way bill. The Eway bill is generated on the official website at ewaybillgst.gov.in. An Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API. Once the eway bill is generated, an Eway Bill Number (EBN) is allocated. This unique number is made available to the supplier, recipient, and the transporter.
The Eway bill needs to be generated before the commencement of the transportation of goods from one place to another. An Eway bill is generated for the purpose of -
Supply includes movement of goods not only on account of sales but also for any other reason like inter-branch transfer, purchase from an unregistered person and barter exchange of goods. However, there are certain instances where an Eway bill is to be created even if the value of the goods does not exceed INR 50,000.
An Eway bill can be generated by-
However, if supplies of goods are made by an unregistered person to a registered person, the recipient of goods has to make sure an Eway bill is generated. A transporter is responsible to generate an Eway bill if the same has not been generated by the supplier. In case of unregistered transporters, they will be provided with a Transporter ID on registering on the Eway bill login portal.
Given below is the process of generating an Eway bill via SMS
Firstly, login to the e-way bill portal (ewaybillgst.gov.in). Now click on “Registration” that appears on the left side of the dashboard and then select “For SMS” option on the drop-down menu.
Enter the registered mobile number on the displayed screen. Click on “Send OTP” and enter the same in the “Enter OTP”. Verify the OTP and then click on “Exit”.
After clicking on Exit, all the user IDs will be displayed on the screen.
On selecting the relevant user ID the mobile number will be auto-populated. Click on “Submit” and the e-way bill will be generated.
Click on “Submit” and the e-way bill will be generated.
Using a web based system the EWay bill can be generated with the portal at https://ewaybill.nic.in/ and enter the login details.
Select the “Generate New” option from the E-Way bill- Main menu page to create a new E-Way bill.
A new EWB bill generation form will appear in which you are required to fill in details required similar to creating a GST invoice.
Select outward, if you are the supplier and inward, if you are the recipient. Enter details of the supplier and recipient along with GSTIN. Before proceeding to the next step kindly check the details that have been filled in.
The second half of the page will contain information to be filled as follows:
Name of the Product and Description must be completed.
Enter the HSN Code for the Product.
Quantity and Unit of the goods.
Value of the products being transported along with Tax rate.
IGST or CGST Rates applicable. IGST would be applicable for inter-state transport and SGST / CGST for intra-state transport.
Approximate distance of transportation along with the Transporter Name and Transporter ID
After filling all the details, click on the “SUBMIT” button to create the EWB. The Portal shall display the E-Way bill containing the EWB number and the QR Code in a digital format.
A consolidated Eway Bill will be generated containing all the details on the transaction, by simply providing the ‘E-Way bill number’ in the required field. Click on “SUBMIT” to generate the consolidated EWB.
As per Rule 138 of CGST Rules, an e-way is not required to be generated in the following situations:
Non-motorised Transportation: Goods transported by a non-motorised conveyance do not require an eway bill.
Transportation in Custom Bonds: Transportation of goods under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port.
Under Custom Supervision: Transport of goods under customs supervision or under customs seal.
Transit to Nepal and Bhutan: Transportation of goods that are transit cargo from or to Nepal or Bhutan do not require eway bill.
Exempted Goods: Transport of exempted goods.
Transportation by Rail Service: Transport of goods by rails where Central Government, State Government or a local authority is acting as a consignor.
Ministry of Defence: Movement of goods caused by Ministry of defence acting as a Consignor.
Unoccupied Cargo Container: Empty cargo containers can be transported without an eway bill.
Using Delivery Challan: Transport of goods for weighment and distance is less than 20 Kms between the place of business of consigner and weighbridge. A delivery challan shall be made and carried during transportation.
Under the Central Tax Rate: Goods specified in schedule appended to notification no. 2/2017-Central Tax (Rate) dated 28.06.2017 is being transported, other than de-oiled cake
The Eway Bill format in GST comprises two parts Part A and Part B.
Part A of the bill in Form GST Eway bill 01 will consist of the details of the consignment, usually the invoice details.
Mention the GSTIN or Goods and Services Tax Identification Number of the recipient.
The Pin Code of the place where goods are delivered will be mentioned here.
Fill in the Invoice or Challan number against which the goods are supplied.
This indicates the consignment value of goods.
Enter the HSN code of goods which are transported. If your turnover is up to INR 5 crores, you need to mention the first 2 digits of HSN code. If the amount is more than INR 5 crores, 4 digits of HSN code are required.
The reason is pre-defined and you need to select the most appropriate option from the displayed list.
Either one of the Goods Receipt Number, Railway Receipt Number, Airway Bill Number or Bill of Lading Number must be mentioned.
In Part B of Form GST Eway bill 01, enter the vehicle number in which goods are transported. This will be filed by the transporter in the common Eway bill login portal.
The person in charge of the vehicle for movement of goods will never again need to convey physical copies as the RFID device is attached to the vehicle and the e-way bill can be verified through the device.
This bill reduces the logistic cost with the reinforcement of proper invoicing and along these lines would reduce tax avoidance.
Eway bill system will increase the efficiency & speed of transportation. This will gradually help to reform the industry. No waiting time at the check post and faster movement of goods will result in optimum use of resources.
Eway bill system & portal is very user friendly and easy. The dealers can themselves download the e-way bill.
There is no big task to generate e-way bill in the upcoming time. It will be made very easy because the government is working very lightly.
The validity of an Eway bill or a consolidated e-way bill is based on the distance the goods have to be transported. The validity of an e-way bill will be calculated from the date of Eway bill generation. An Eway bill shall be valid for the period calculated as follows:
Up to 100 KM
For every 100 KM or part thereof thereafter
1 Additional Day
The transporter or the person in charge of conveyance needs to have the following documents:
During the verification the officer may intercept any vehicle to verify the Eway Bill or the Eway Bill number in physical form, this will be for all interstate and intrastate movement of goods. Physical verification of the vehicle will be carried out by an officer after obtaining necessary approval from the commissioner authorized on his behalf. If the physical verification of the vehicle is done within the state or in any other state, no further physical verification will be required during the transit.
After every inspection, the officer records the details in Part A of Form GST Eway bill 03 within 24 hrs of inspection. The final report has to be recorded in Part B of Form GST Eway bill 03 within 3 days of the inspection. If the vehicle is detained for more than 30 minutes, the transporter has the right to complain regarding the situation by uploading the details in Form GST Eway bill 04.
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Transporters responsible for carrying goods by road, air, rail, etc. are all required to generate an e Way Bill if the supplier has not generated an Eway bill due to any reason. If the transporter does not generate the Eway Bill when he is required to, he may face a penalty of Rs 10,000 or tax sought to be evaded (wherever applicable) whichever is greater, further liable for the confiscation of goods and seizure of the vehicle.
“CKD/SKD” means the movement of the goods in Completely knocked down condition or Semi Knocked Down condition. “Line Sales” Vertical sales made from one unit/department/division of an organisation to another unit/department/division next in production line within that Organisation
Value of consignment of Goods” is interpreted as follows:
● Invoice Value* exceeds Rs. 50,000 OR
● If a vehicle carries goods against multiple Invoices, then where the aggregate Invoice value* exceed Rs. 50,000
If the above points are satisfied, the user should generate an Eway bill.
Yes, the details of the Eway bill will be made available to the recipient only if he is registered. The recipient of goods is required to communicate acceptance or rejection of the consignment covered by the Eway bill within 72 hours of the details being made available.
In this case, the Eway bill will get cancelled electronically on the portal within 24 hours of its generation. If the Eway bill has been verified by an officer during transit the chances of cancellation are none.