GST E-Way Bill Generation - An Overview
The GST e-way bill or waybill is a mandatory requirement for, all businesses registered under GST, transporting goods worth over Rs. 50,000/-, as per rule 138 of the CGST (Central Goods & Services Tax) Act. The E- Way bill itself is a compliance tool to ensure transported goods comply with GST Law. It is uploaded onto the GST portal with the relevant information related to the goods that are being transported, prior to the transfer. Which further allows for their tracking.
What are the components of a GST E-Way Bill?
The GST E-way bill is generated on the basis of two components - PART A & PART B.
Part A requires information of the person who is causing movement of goods such as his/her GSTIN (GST number) delivery location (Pincode), invoice number (with date), the value of transported goods, HSN (Harmonized System of Nomenclature) code to classify the category of goods to calculate the tax slab, and the document number based on mode of transport (Railway Receipt Number or Airway Bill Number or Bill of Lading Number etc.), and last but not least, reasons behind transporting these goods.
Part B requires transport information, such as transporter ID and vehicle information. The GST E-Way bill is generated based on the transport information in Part B.
Benefits of GST E-Way Bills
- Removes the bottleneck complications of the bill generation system established under the VAT taxation system.
- Also under the VAT system, different states prescribed different rules for generating E-Way Bills. Under GST, there is a stable and consistent system for generating E-Way bills throughout the country.
- It provides a digital interface to enter information and generate the E-Way Bills, and thereby facilitate faster movement of goods.
- By being able to track the movement of good, it aims to reduce the turnaround time, travel time, and costs.
Who needs GST E-Way Bill?
- Consignor/Consignee : When transportation of goods valued over Rs 50,000 is carried out by either the Consignor/Consignee registered under GST, the respective person has to generate the E-Way Bill.
- Transporter : When the goods have been assigned to the transporter to be transported, he/she will generate the E-way Bill.
- Transporter by default : In case, both consignor or consignee have not generated an E-way bill and the value of the goods being transported is more than Rs. 50,000/-, it will be the responsibility of the transporter to generate the E-Way Bill.
- Transfer to job worker : Where a principal located in a State/Union Territory transfers goods to a job worker located in another, the E-Way Bill is generated by the principal regardless of the consignment value.
Documents required to generate an E-Way Bill
E-Way Bills are generated on the E-Way bill portal (https://ewaybill.nic.in/). Users login her and input the requisite information via the following documents:
- Invoice/Bill/Receipts/ for goods transported.
- Transport documents (if goods are transferred by road) – transporter ID and vehicle information.
- Transport documents (if goods are transferred air/sea/land) – transporter ID, travel document number and date.
The validity of a GST E-Way Bill
- The E-way bill validity depends on the distance to be travelled.
- For distances, less than 100 km, the E-Way bill validity is 1 day from the ‘relevant date’.
- The ‘relevant date’ refers to the date on which the GST E-Way bill was generated.
- For every 100 Km travelled after the first hundred, an additional day is added to the existing 1-day E-Way bill validity, from the relevant date.
- This is not an extension, but an addition as per the rules of validity.
- In general, the validity period cannot be extended. Unless notification is issued by the commissioner based on the category of goods.
- Also, if goods cannot be transported as per the validity period, the transporter can update the details in Part B of FORM GST EWB-01 and generate a new GST E-Way bill.
What are the penalties for non-compliance of E-way bill system
- Rule 138 of Consumer Goods and ServicesTax Act (CGST) 2017 states that if E-Way bills are not issued in accordance with the provisions contained in the CGST Rules, 2017, the same will be considered as contravention of the rules of the E-way bill system!
- Section 122 states that if taxable individuals transport taxable goods without the requisite documents (including GST E-way bills) they are liable to pay a penalty of Rs. 10,000/-, or considered as tax evaded under rules of the E-way bill system. (Whichever is greater at the time of application).
- Section 129 of Consumer Goods and ServicesTax Act (CGST) 2017 states, where individuals transport goods or stores them while in transit, they are in contravention of the provisions of the E-way bill system. As such of those goods and documents pertaining to them are liable to be detained or seized.
Learn more about GST registration and its online process.