What is an e-way Bill and how does it work?

Last Updated at: March 16, 2020
446
What is an e-way Bill and how does it work_

This post is written by Vinoliya Dhanasekaran

 

What is an E-Way Bill?

E-Way Bill is the short form of Electronic Way Bill. It is a unique document or bill, which is electronically generated for the specific consignment or movement of goods from one place to another, either interstate or intrastate and of value more than INR 50,000, required under the current GST regime. E Way Bill is generated, a unique e-Way Bill Number (EBN) is made available to the supplier, recipient and the transporter.

As per the update on 23rd Mar 2018, the generation of the e Way Bill has been made compulsory from 1st April 2018. Inter-state implementation of the e-way bill is notified to be implemented from 1st April 2018.

The e-Way Bill replaces the Way Bill, which was a physical document and existed during the VAT regime for the movement of goods.

e-way bill portal indiaHow does an e-way bill work?

e-way bill portal india
A GST Officer can intercept any conveyance to verify the e way bill or the e-way bill number for all interstate movement of goods. 

A summary report of every inspection of goods in transit shall be recorded online by the GST officer a in specified format within twenty-four hours and a final report in a specified format shall be recorded within three days of the inspection. 

Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in a specified format on the common portal.

Ideally, the e Way Bill should be generated before the commencement of the movement of goods above the value of INR 50,000 (either individual invoice or consolidated invoice of multiple consignments). The movement of goods will be either about a supply nor reasons other than supply (like return)/ inward supply from an unregistered person.

For purposes of an e-Way Bill, supply is considered either a payment in the course of business or payment that may not be in the course of business or no consideration of payment.

Who should generate an e Way Bill?

generate e way billGST Registered Person:

(a) When a registered person causes the movement of goods or consignment, either in the capacity of a consignee (i.e., buyer) or consignor (i.e., seller) in vehicle or hired vehicle or railways or by air or by ship, then either the registered person or the recipient should generate the e-Way Bill in Form GST EWB 01 electronically on the common portal by furnishing information in Part B.

(b) When a registered person causes the movement of goods and hands these over to the transporter for transportation by road, but the e-Way Bill has not been generated, then it is the transporter who needs to generate the bill. The registered person will first furnish the information relating to the transporter in Part B of Form GST EWB. After this, the transporter will generate the e Way Bill by the information furnished by the registered person through Part A of Form GST EQB 01.

File for YourGST now

Unregit-registrationstered Person:

(a) When an unregistered person causes the movement of goods, through their conveyance or hired conveyance or using the services of a transporter, then the e-Way Bill needs to be generated either by the unregistered person or by the transporter, by completing Form GST EWB-01.

(b) When an unregistered person supplies the goods to a registered person and the registered person is known to the unregistered person at the time of the start of the movement of goods, then it will be considered that the registered person is moving the consignment. In this case, the registered person or transporter shall complete the formalities of the e-Way Bill.

How to generate e-Way Bill?

E-Way Bill can be generated on the e-Way Bill Portal. All you need is a Portal login. 

generate e-way bille-way bill portal indiaWhat happens if E-Way Bill is generated but goods are not transported?

In case the e-Way Bill is generated but the goods have not yet transported to the destination, then the bill needs to be cancelled. It can either be cancelled electronically via the GST website or through a GST Facilitation Centre within 24 hours of the generation of the bill. If any officer has already verified the bill during transit, then it cannot be cancelled.

During Transit, what happens if goods are transferred from one vehicle to another vehicle?

When goods are transferred from one vehicle to another during transit, before the actual transfer, and before further movement takes place, the transporter will need to update the details of the vehicle in the e-Way Bill in the Form GST EWB 01, through the common portal.

Is there any penalty if the transporter fails to generate an e-Way Bill?

If the supplier for some reason fails to create the e-Way Bill, then it is the responsibility of the transporter to obtain it. If the transporter fails to do the same, then the responsible person may face the greater of an Rs. 10,000 fine or tax assumed to be avoided. 

What if I want to cancel the e-way bill?

An e-Way Bill can be cancelled via the GST website or via SMS within 24 hours of its generation. However, the bill cannot be cancelled if an officer in transit has verified the same.

 

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What is an e-way Bill and how does it work?

446

This post is written by Vinoliya Dhanasekaran

 

What is an E-Way Bill?

E-Way Bill is the short form of Electronic Way Bill. It is a unique document or bill, which is electronically generated for the specific consignment or movement of goods from one place to another, either interstate or intrastate and of value more than INR 50,000, required under the current GST regime. E Way Bill is generated, a unique e-Way Bill Number (EBN) is made available to the supplier, recipient and the transporter.

As per the update on 23rd Mar 2018, the generation of the e Way Bill has been made compulsory from 1st April 2018. Inter-state implementation of the e-way bill is notified to be implemented from 1st April 2018.

The e-Way Bill replaces the Way Bill, which was a physical document and existed during the VAT regime for the movement of goods.

e-way bill portal indiaHow does an e-way bill work?

e-way bill portal india
A GST Officer can intercept any conveyance to verify the e way bill or the e-way bill number for all interstate movement of goods. 

A summary report of every inspection of goods in transit shall be recorded online by the GST officer a in specified format within twenty-four hours and a final report in a specified format shall be recorded within three days of the inspection. 

Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in a specified format on the common portal.

Ideally, the e Way Bill should be generated before the commencement of the movement of goods above the value of INR 50,000 (either individual invoice or consolidated invoice of multiple consignments). The movement of goods will be either about a supply nor reasons other than supply (like return)/ inward supply from an unregistered person.

For purposes of an e-Way Bill, supply is considered either a payment in the course of business or payment that may not be in the course of business or no consideration of payment.

Who should generate an e Way Bill?

generate e way billGST Registered Person:

(a) When a registered person causes the movement of goods or consignment, either in the capacity of a consignee (i.e., buyer) or consignor (i.e., seller) in vehicle or hired vehicle or railways or by air or by ship, then either the registered person or the recipient should generate the e-Way Bill in Form GST EWB 01 electronically on the common portal by furnishing information in Part B.

(b) When a registered person causes the movement of goods and hands these over to the transporter for transportation by road, but the e-Way Bill has not been generated, then it is the transporter who needs to generate the bill. The registered person will first furnish the information relating to the transporter in Part B of Form GST EWB. After this, the transporter will generate the e Way Bill by the information furnished by the registered person through Part A of Form GST EQB 01.

File for YourGST now

Unregit-registrationstered Person:

(a) When an unregistered person causes the movement of goods, through their conveyance or hired conveyance or using the services of a transporter, then the e-Way Bill needs to be generated either by the unregistered person or by the transporter, by completing Form GST EWB-01.

(b) When an unregistered person supplies the goods to a registered person and the registered person is known to the unregistered person at the time of the start of the movement of goods, then it will be considered that the registered person is moving the consignment. In this case, the registered person or transporter shall complete the formalities of the e-Way Bill.

How to generate e-Way Bill?

E-Way Bill can be generated on the e-Way Bill Portal. All you need is a Portal login. 

generate e-way bille-way bill portal indiaWhat happens if E-Way Bill is generated but goods are not transported?

In case the e-Way Bill is generated but the goods have not yet transported to the destination, then the bill needs to be cancelled. It can either be cancelled electronically via the GST website or through a GST Facilitation Centre within 24 hours of the generation of the bill. If any officer has already verified the bill during transit, then it cannot be cancelled.

During Transit, what happens if goods are transferred from one vehicle to another vehicle?

When goods are transferred from one vehicle to another during transit, before the actual transfer, and before further movement takes place, the transporter will need to update the details of the vehicle in the e-Way Bill in the Form GST EWB 01, through the common portal.

Is there any penalty if the transporter fails to generate an e-Way Bill?

If the supplier for some reason fails to create the e-Way Bill, then it is the responsibility of the transporter to obtain it. If the transporter fails to do the same, then the responsible person may face the greater of an Rs. 10,000 fine or tax assumed to be avoided. 

What if I want to cancel the e-way bill?

An e-Way Bill can be cancelled via the GST website or via SMS within 24 hours of its generation. However, the bill cannot be cancelled if an officer in transit has verified the same.

 

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