1st of July 2017 was a revolutionary day for the taxation system in India with the introduction of the Good and Services Tax Act, also known as the GST Act. The Act introduced simplified tax filing and tax-return filing systems online. See Online GST Filing software.
As a part of the introduction of GST, the government launched the system of Electronic Way Bill also known as e-way bill or waybill or simply ewb for short. The eway-bill is a statutory compliance for the transportation of goods via vehicles where the consignment value exceeds ₹ 50,000 in a single invoice/bill/delivery challan. The e-way bill under the GST regime replaces the former waybills (also known as road permits). The E-waybill can be generated via a variety of methods including the Android App, through SMS and Site to Site integration via E-way Bill API.
What is E-way Bill?
Basically, any person registered under GST looking to transport goods worth more than ₹50,000 [known as the threshold limit] from one place to another should do so by generating and issuing an eway-bill before the transportation of goods commences. In order to calculate the total consignment value, in addition to the value of goods, the GST charged on an invoice needs to be included, however, the value of exempt supply can be omitted. Do keep in mind that different states of the country follow different threshold limits and it is not necessary that all states will follow the set threshold limit. for eg. the state of Tamil Nadu has exempted, it’s citizens from generating the ewb if the value of the consignment falls below ₹ 1lakh. In addition to this, there are many cases of exemptions where e-way bill can be skipped for eg. when goods are being transported through a non-motorized vehicle. Contrary to this, there are also cases where the ewb is mandatory irrespective of the consignment value for eg. movement of goods from a principal manufacturer to a job worker and for handicraft products.
Contents of the E-way Bill
The eway-bill facilitated via the Form GST-EWB 01 is divided into two fundamental parts, Part A and Part B.
Part A entails details about the Goods being transported these include:
- Invoice/ Delivery Challan/ Bill Number and corresponding date
- GST registration numbers of both the Supplier as well as the Recipient
- Summary of goods being transported along with their values
- 6-digit Pin Codes of the place of delivery and the place of dispatch.
- Mode of Transport [Roadways, Airways, Railways or Ship ]
- Vehicle Number [In case of Road Transport]
- Document number as well as the date of transport
Part B includes details of the vehicle facilitating the transportation these details are as follows:
When to Generate an E-Way Bill?
A transporter has to generate an e-Way Bill (EWB)
- In relation to a supply
- For motives other than supply ( for ex. return)
- Inward supply from an unregistered person
- Sale of Goods
- Transfer of Goods to another location
- Barter Exchange (Exchange of Goods rather than goods for money ).
A supply constitutes the following:
An e-Way Bill has to raised for certain specific products even when the value of consignment is below Rs. 50,000:
Interstate transport of handicrafts by the dealer who has been exempted from GST registration.
Interstate transportation of goods by the principal to the job worker by registered job worker/principal.
Who should generate E-Way Bill?
EWB have to be generated by individuals registered under GST for transport of goods to them or from them when the consignment of goods exceeds Rs. 50,000 in value.
Unregistered people also have the option of generating an EWB. In addition to this, if a supply is made from an individual not registered under GST to a GST registered person, the recipient has to ensure the compliance requirements are met acting as if he was the supplier himself.
Transporters have to be ready with e-Way Bill as well if the supplier/consignor/consignee or all haven’t raised the EWB( e-Way Bill) by filling out PART A of FORM GST EWB-01. If the transporter is carrying multiple consignments in a single delivery, they have to use form GST EWB-02 to produce a consolidated e-Way Bill which gives out the e-Way Bill numbers of each consignment.
Who is in charge of the e-way bill?
A copy of the Electronic waybill generated should be carried by the individual responsible for the transportation of the goods. If not a copy, then at the very least the 12-digit e-way bill number(EBN) should be handy with the transporter. The person-in-charge of transportation should also carry a copy of the bill/invoice/delivery challan for the goods. The ewb can be carried in printout form, SMS(electronic form) or the e-way bill number can be written on the invoice /challan.
Exemptions from e-Way Bill (Cases where EWB is not required)
- Transportation from a non-motorized vehicle
- Goods transported from a custom port, airport, air cargo complex to Inland Container Depot(ICD) or Container Freight Station(CFS) for clearance from Customs
- Goods sealed by customs or being transported under the supervision of customs
- Products under Customs Bond from ICD to customs port or in-between custom stations
- Transit cargo to or from Nepal or Bhutan
- Goods transported because of defense formation with the Ministry of Defense as consignor or consignee.
- Transportation of empty cargo containers
- Transportation of goods from the place of business and a weight bridge within a distance of 20kms accompanied by a delivery challan.
- Goods transported via rail where any of Central Governments, State governments or local authorities are consignors
- Goods specified by State/Union territories GST rules as exempt from e-way Bill.
Documents Required for e-Way Bill
Following documents will be helpful for generation of EWB successfully.
Validity of EWB
The validity of e-Way Bill depends on the distance traveled by the consignment.
|Over Dimensional Cargo||Less than 20 Km||1 Day|
|Every Additional 20 Km or part thereof||Additional 1 Day|
|Normal Cargo||Less than 100 Km||1 Day|
|Every Additional 100 Km or part thereof||Additional 1 Day|
Over DimensionalCargo is basically Cargos whose size exceeds Dimensional Limits specified in the Central Motor Vehicle Rules, 1989
How to Generate the e-Way Bill
The generation of the E-way bill can be done through multiple sources. These are as follows:
- E-Way Bill Generation via SMS.
- E-Way Bill Generation via EWB portal.
- E-Way Bill Generation via Android Application.
- Site-to-Site Integration via the EWB API.
Salient Features of the API:
- Provides pass through APIs to directly access data and generate EWB via Government Portals
- Sandbox Testing before going into production phase
- RESTful API based on JSON format
- Developer-Friendly Structure with very little setup cost
- HTTPS Secured APIs
- Extensive and Descriptive Documentation with Sample Code
- Fast and Easy Integration
- Unwavering Tech Support
Workflow of Transport of Goods
Frequently Asked Questions
E-Way Bill is a document, generated by the GST Common Portal. It was notified on the 1st day of April 2018 through Notification No. 15/2018 – Central Tax.
The consignor or consignee or the transporter of goods can generate the e- waybill. If the transporter is unregistered, enrollment can be done on the common portal and generate the e-Way Bill for movement of goods for his clients.
Notification under rule 138 of Goods and Services Tax Rules 2017, mandates to carry eway-bill for transportation of goods of the consignment of value more than rupees fifty thousand. Except for the goods specified in the Annexure to the notification, it is mandatory to generate.
- Single invoice value exceeds. ₹ 50,000
- Vehicles carrying goods against multiple invoices where the aggregate exceeds ₹ 50,000
- The person who generates e-Way Bill should be a regiWhatstered person on GST portal.
- He should register in the e-Waybill portal.
- If the transporter is not registered- It is mandatory to get him enrolled on e- Way Bill portal before generation of the e-Way Bill.
- Tax invoice/Bill of Sale/Delivery Challan.
- Transporter’s Id.
- Transporter’s document number/Vehicle number.
Every Registered person under GST has to fill Part A in Form GST EWB–01, before movement of goods. After entering all the details a temporary number as Part-A Slip is generated. These details are used in Part-B for the generation of e-Way Bill.
Since e-Way Bill expects the user to enter vehicle number or transporter ID, the taxpayer can update it later in Part-B of Form GST EWB-01 and generate the e-Way Bill. If the taxpayer is the transporter himself, he can enter his GSTIN as transporter ID and generate Part-A Slip.
Once the e-Way Bill is generated it cannot be modified, only Part-B can be modified. However, it can be canceled and generated freshly within 24 hours from the time of generation.
The validity of the e-way bill starts when the first entry is made in Part-B. That is, vehicle entry is made the first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry. It may be noted that validity is not re-calculated for subsequent entries in Part-B.
Goods are not supposed to be moved if the validity of the e-way bill expires. However, under circumstances of ‘exceptional nature’, the generator of the e-way bill can generate another e-way bill, by entering the e-way bill number and part-B. Now, the system generates the new e-way bill with part-A information on the previous e-way bill and new Part B information.
If goods of one invoice are being moved simultaneously in multiple vehicles, the e-Way bill shall be generated for each such vehicles based on the delivery Challans issued for that portion of the consignment.