In this blog, we delve into recent updates concerning the GST e-Way Bill system. These updates carry implications for businesses involved in the movement of goods, and we discuss the key changes that have been introduced. Understanding and complying with these updates is crucial to ensure smooth operations and adherence to GST regulations.
Eway Bill GST is an electronically created document necessary for the transfer of products worth more than 50,000 from one location to another in India, except in Delhi. When moving goods within Delhi, an eway bill is necessary if the value of the products exceeds ₹1 lakh. This document must be prepared online for all interstate and intrastate goods movements. The e-way bill created in any state is valid in all Indian states and union territories.
What is the Date of Applicability of the Eway Bill in GST?
The eway bill GST under the gst apply online process is applicable for the transfer of goods from one state to another as of 1 April, 2018.
The Validity of the Eway Bill GST
An Eway bill GST is valid for the period specified below, beginning on the applicable date:
| Distance | Validity Period |
| Upto 100 km | 1 day |
| For every additional 100 km or above that | 1 additional day |
Except for Over Dimensional Cargo, the aforementioned validity would apply to everyone. In the instance of over-dimensional cargo, the validity period would be as follows, beginning on the appropriate date:
| Distance | Validity Period |
| Upto 20 Kms | 1 day |
| For every additional 20 km or above that | 1 additional day |
Meaning of Relevant Date
The relevant date for calculating the validity of the Eway bill GST shall be the date on which the GST waybill was generated. The period of validity shall be counted from the time at which the invoice was developed, each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way.
With the assistance of an example, this may be explained.
- Example 1 – Assume Mr Ganesh created an GST Eway bill on 27 June 2018 at 4 PM for the transportation of merchandise over a distance of 87 kilometres. This E-Way bill is valid until midnight on 28 Jun, 2018
- Example 2 – Assume Mr Iyer created an E-Way Bill on 27 June 2018 at 4 PM for the transportation of merchandise over a distance of 187 kilometres. This E-Way bill is valid until midnight on 29 June 2018.
Who can generate the Eway Bill GST?
Under the GST regime, the e-way bill must be created by;
- Every registered person who causes the movement of goods of consignment concerning a supply (Eg: Sales), or for reasons other than supply (Eg: Sales Return, Branch Transfer, etc, or due to inbound supply from an unregistered person.
Eway Bill in the Event of Movement by a Registered Individual
If the registered person acts as a consignor (i.e. seller) or the recipient of supply acts as a consignee (i.e. buyer), whether by his own conveyance or a hired one, or by railways, air, or sea, the registered person or the recipient may electronically generate the GST waybill by clicking on eway bill gst login portal and filling the Form GST EWB 01 after furnishing information in Part B of Form GST EWB 01.
When registering for GST in India, you can calculate how much GST you will have to pay using a GST Tax Calculator.
If the registered person causes the movement of goods and hands them over to the transporter for road transportation, but the e-way bill is not created, it is the transporter’s obligation to generate the bill through the eway bill GST login.
E-Way Bill in the Event of an Unregistered Individual
When goods are moved by an unregistered person, whether in his own conveyance, a rented conveyance, or through a transporter, the unregistered person or the transporter should create the GST way bill.
In other words, even if the person conveying the goods is not registered, he is needed to create the e-way bill himself or through the transporter.
The e-way bill should be created by clicking on the eway bill GST login on gst.gov.in in the Form GST EWB-01. Even if the unregistered person is not registered, they can produce an e-way bill on the GST Portal.
Situations in which an Eway Bill GST is not required to be generated
In the following conditions, it is not necessary to produce an eway bill GST:-
- The items are carried within the same state over a distance of fewer than 10 kilometres between the transporter’s and consignee’s places of business
- The items are carried inside the state for a distance of fewer than 10 kilometres between the consignor’s place of business and the transporter’s place of business for onward transit
- The items are conveyed using a non-motorized mode of transport
- The commodities are carried to an inland container depot or a container freight station for Customs clearance from the port, airport, air cargo complex, and land customs station
- In the case of specific commodities such as jewellery, personal and household effects, and others that are listed in this list – List of Items that do not require an eway bill
- In relation to the movement of products within the zones specified in clause (d) of sub-rule (14) of rule 138 of the relevant state’s Goods and Services Tax Rules.
When transporting goods over a distance of more than 10 kilometres but less than 50 kilometres, the development of an e-way bill is required, but the e-way bill does not have to include the specifics of the conveyance.
Documents and Devices
The person in charge of transport shall possess the following.
- The Invoice, Bill of Supply, or Delivery Challan, and a copy of the e-way bill or the e-way bill number, either physically attached to the conveyance or mapped to a Radio Frequency Identification Device installed on the conveyance in accordance with the Commissioner’s instructions
- A registered person may receive an Invoice Reference Number from gst.gov.in by uploading a tax invoice issued by him in Form GST INV 1 and presenting it to the relevant officer for verification in place of the tax invoice. Such a number shall be valid for 30 days from the date of uploading.
Recent Updates on eWay Bill GST
The Eway bill GST system recently issued an update on September 05, 2023, which states that, in accordance with Notification No. 78/2020 dated October 15, 2020, businesses with an Aggregate Annual turnover (AATO) exceeding Rs. 5 Crore must incorporate a minimum of a 6-digit HSN code in their e-Invoices and e-Way Bills. For other taxpayers, a minimum of a 4-digit HSN code should be included in their E-Invoices and E-Way Bills.
While most taxpayers are already adhering to this requirement, those who haven’t yet are urged to make the necessary adjustments and ensure compliance by the specified due date. It’s important to note that this change will become mandatory in the e-Waybill and e-Invoice Systems starting from October 01, 2023.
When Should eWay Bill GST be Issued?
The issuance of an e-Way Bill is mandatory when goods of a certain value are being transported, whether within a state or across state borders. The threshold value beyond which an e-Way Bill is required varies from state to state, making it essential to check the specific threshold applicable in your region. Typically, the e-Way Bill is generated when the value of goods being transported exceeds a specified amount, as determined by the respective state’s tax authorities.
Cases When e-Way Bill GST is Not Required
While e-Way Bills are mandatory for most inter and intra-state movements of goods, there are specific circumstances in which they are not required. Understanding these exceptions is vital to avoid unnecessary paperwork and delays. Some common scenarios exempt from e-Way Bill requirements include the transport of specified goods, transit of goods to or from certain locations, and non-motorised conveyances.
SMS e-Way Bill Generation on Mobile
The introduction of SMS-based e-Way Bill generation on mobile devices is a significant step towards simplifying the process for businesses, especially those on the move. This feature allows users to generate e-Way Bills conveniently through their mobile phones. It offers flexibility and ease of use, making compliance with GST regulations more accessible for small and large businesses alike.
Enabling SMS e-Way Bill Generation Facility
To enable SMS-based e-Way Bill generation, users need to follow specific steps and ensure compliance with the required procedures. This may involve registering mobile numbers, verifying identity, and setting up the necessary infrastructure to support this functionality. Understanding the process and its benefits can help businesses take full advantage of this convenient option.
How to Generate e-Way Bill?
Generating an e-Way Bill GST involves a series of steps that need to be followed accurately to ensure compliance with GST regulations. The process includes providing details about the consignment, the supplier, the recipient, and the mode of transportation. Additionally, it requires the generation of a unique e-Way Bill number, which needs to be presented to the authorities during the transportation of goods. Businesses can choose from various methods, including online portals, mobile apps, and SMS-based generation, to create e-Way Bills efficiently.
Conclusion
Except for products exempted under notifications or laws, all commodities must be transported using the GST waybill. The movement of handicraft goods or goods for job-work purposes, under certain conditions, also necessitates the use of an e-way bill GST, even if the value of the consignment is less than ₹50,000.
FAQs on GST e-way Bill
What is the Purpose of the GST e-Way Bill?
The GST e-Way Bill serves the primary purpose of enabling seamless tracking and monitoring of the movement of goods across state borders. It helps tax authorities ensure tax compliance and prevents tax evasion while simplifying the logistics of goods transportation for businesses.
What is the Validity Period of an e-Way Bill?
The validity period of an e-Way Bill depends on the distance to be travelled by the goods. For a distance of up to 100 kilometres, the e-Way Bill is valid for one day, and for every additional 100 kilometres or part thereof, an additional day is allowed.
Is the e-Way Bill Mandatory for All Goods, Regardless of Their Value?
No, the e-Way Bill is not mandatory for all goods. It is required for the transportation of goods with a value exceeding the specified threshold amount, which varies from state to state.
How Can I Generate an e-Way Bill?
Generating an e-Way Bill can be done through the official e-Way Bill portal, mobile apps, or by sending an SMS. You will need to provide specific details about the consignment, parties involved, and transportation mode.
What Are the Consequences of an Expired e-Way Bill?
If an e-Way Bill expires during the transit of goods, it may lead to penalties and disruptions in the transportation process. The transporter or supplier may be required to generate a new e-Way Bill to continue the journey.
What is Rule 138 of the e-Way Bill?
Rule 138 of the e-Way Bill pertains to the generation and maintenance of e-Way Bills for the movement of goods. It specifies the requirements, procedures, and conditions for generating and using e-Way Bills.
Is GST Registration Mandatory for Businesses With a Turnover Below a Certain Limit?
GST registration is mandatory for businesses with a turnover above the prescribed threshold limit, which may vary from state to state. Small businesses with turnover below this limit may not be required to register for GST.
What Are the Different Types of e-Way Bills, and When Are They Used?
There are different types of e-Way Bills, including the regular e-Way Bill, consolidated e-Way Bill, and others. These are used based on the nature and purpose of the goods transportation, whether it's a single consignment or multiple consignments in a single vehicle.
Can e-Way Bills Be Rejected After a Specific Time Frame?
Yes, e-Way Bills can be rejected by tax authorities if they find discrepancies or violations. The rejection can occur after a specific time frame, and businesses must rectify the issues and re-generate the e-Way Bill.
Are There Any Benefits to Using e-Way Bills for Businesses?
Yes, there are several benefits to using e-Way Bills for businesses, including reduced paperwork, faster clearance at checkpoints, better inventory management, and improved compliance with GST regulations. E-way bills also help in enhancing transparency and minimising tax evasion in the supply chain.
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