What is an E-way Bill GST? And why do you need it?

In the complex world of logistics and taxation, the E-way Bill under the GST system has become a crucial element for businesses engaged in the transportation of goods across India. It is basically a document mandated by the government to ensure smooth movement of goods to curb tax evasion. 

So, if you are also new to the term E-way Bill GST and wish to learn more about it, scroll through the details shared in this blog and learn more about what it is, why you need it, and what benefits it brings to the supply chain ecosystem. 

What is an E-Way Bill GST?

For those who don’t know about the e-way bill, it is a permit required for inter-state transportation of goods worth more than Rs. 50, 000. It consists of all the details of the goods, the consignor, the recipient, and the transporter. And it can be electronically generated using GSTN. 

The bill was made mandatory for inter-state supplies from April 1, 2018 and for intra-state supplies from April 25, 2018 in various states (Madhya Pradesh, Arunachal Pradesh, Meghalaya, Sikkim, and Puducherry). 

What are the contents of the E-way bill?

The E-way Bill GST consists of two main components: 

1) Part A of the E-Way bill includes the following: 

• Recipient of the GSTIN
• Place of delivery (PIN code)
• Value of goods
• Invoice or Challan number along with the issue date
• HSN code
• Receipt number/Airway Bill Number/Bill Of Lading Number 
• Transport document number 
• Reasons for transportation

2) Part B of the bill contains the details of the transporter (for instance, their vehicle number). 

When is an E-Way bill generated?  

An E-way bill is generated via the E-way bill GST portal before the goods are shipped, and it should include details like the goods, their consignor, transporter, and recipient. 

In general, the bill is generated for:

• Supply of goods
• Non-supply transactions like return of goods, export/import, job work, line sales, semi- or complete knocked-down supply, sale on approval basis, supply of goods for exhibition or fair, and goods used for personal consumption. 

However, there are a few exemptions when an E-way bill is not required to be generated: 

• If the value of the shipment  is less than Rs. 50,000,.
• Goods being shipped are exempt from GST. 
• If goods are transported via non-motorized conveyances,. 
• Transport of goods as mentioned in Annexure to Rule 138(14) of the CGST Rules, 2017.
• If goods are supplied from a port, air cargo complex, air cargo, or land customs station to an inland container depot or a container freight station for clearance by the Customs Department.

Also Read:

• E-Way Bill for Job Work
• E-way Bill Distance Limit

Who needs to generate the E-Way bill?

• Every registered person (receiver or transporter, consignor, or consignee) should generate the e-way bill, provided the transportation is done through their own or hired means (rail, road, or air). 

• An unregistered person who is supplying goods to a registered recipient. Here, the recipient is required to abide by a defined procedure as the supplier is not registered. 

• The transporter is also required to generate the E-way bill if both the consignor and consignee fail to generate the bill via the E-way bill GST portal, despite the fact that shipment was handed over to the transporter. 

However, there are two situations where an E-way bill GST is required to be generated irrespective of the value of the supply (even if the value is less than 50,000):

• When the goods are being supplied by a principal to a job worker in an interstate transaction. 
• And in the situation of an interstate transfer of handicraft goods from a supplier who is exempted from GST registration.

How is an E-way bill generated via gst gov in E-way bill? 

E-way bills can be easily generated through the GST portal in India. All one needs to do is follow the steps shared below: 

Step 1:  Login E-way bill portal

• Begin the process by visiting the gst gov in E-way bill. 
• Now, login and enter your username and password to login. 

Step 2: Select the ‘Generate New’ option

• On the dashboard, click on the ‘Generate New’ option under the ‘E-way bill’ option.

Step 3: Fill in the details

You will need to enter the following details: 

• Transaction type: Select ‘outward’ if you are a supplier and ‘inward’ if you are a recipient. 
• In sub-type, select ‘Supply’, ‘Export’, or ‘Job Work’ based on your transaction.
• Also, select the document type, like ‘Bill of Sale’, ‘Tax Invoice’ etc. 
• Enter the document and invoice number, along with the document date. 

Step 4: Enter party details 

• Enter the GSTIN of the supplier and recipient. If the other party is unregistered, select the unregistered option and provide the required details. 
• Also, fill in the addresses of both the supplier and recipient. 

Step 5: Enter item details

• The item details can include its name, description, HSN code, quantity, unit, value, and more. 

Step 6: Transport details 

• After providing the item details, provide transport details like its mode, name of the transporter, vehicle number, and distance. 

Step 7: Generate a bill 

• Once all the details are provided, click on the Submit button. 
• The system will validate the information and generate a bill with a unique E-way bill number (EBN). 
• You can download and print the bill for future reference. 

What is the validity of the E-way bill? 

The validity of the E-way bill GST  is based on the distance travelled. If the distance is below 200 km then the validity period will be one day before the applicable date. And for every 200 km thereafter, the validity will be extended by a day from the relevant date. 

What are the penalties associated with the E-way bill?

If a consignment is found without an E-way bill, the concerned person is required to pay a fine of Rs. 10, 000 or equivalent amount of tax evaded (greater among the two).

Also Check:

• 
  What is an E-way Bill GST? And why do you need it?
  In the complex world of logistics and taxation, the E-way Bill under the GST system has become a crucial element for businesses engaged in the transportation of goods across India. It is basically a document mandated by the government to… Read more: What is an E-way Bill GST? And why do you need it?
• 
  E-Way Bill for Job Work: A Comprehensive Guide
  If you are a manufacturer, job worker, or businessman, you might already be aware of the e-way bill system under the GST regime. For instance, the movement of goods worth a specified amount requires an e-way bill, which is one… Read more: E-Way Bill for Job Work: A Comprehensive Guide
• 
  E-way Bill Distance Limit: Everything You Need to Know
  This forms the basis of the Indian Goods and Services Tax regime, which has its key component as the E-way Bill system for easy transportation of goods from one state to another with a minimum number of opportunities for tax… Read more: E-way Bill Distance Limit: Everything You Need to Know

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