GST E-way bill generation services

When specific circumstances are met, transporters must carry an eWay Bill when transferring goods from one location to another under GST. Read the full article and learn more about GST e-way bill.

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What is an Eway Bill? The E-Way Bill System, Rules, and Generation Procedure

A e-way bill is a receipt or document provided by a carrier that contains information and instructions on the shipment of a consignment of goods. The information includes the name of the consignor and consignee, the point of origin of the consignment, its destination, and route.

Electronic Way Bill (E-Way Bill) is essentially a compliance mechanism in which the person causing the movement of goods uploads the appropriate information prior to the start of the movement of goods and generates an e-way bill on the GST portal via a digital interface.

From April 1, 2018, the e-way Bill System for the inter-state movement of products throughout the country was implemented. For inter-state travel of goods in motorized conveyance with a consignment value over Rs.50,000/-, an e-Way Bill is required.

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What is an e-way Bill?

E-Way Bill is an Electronic Way Bill that is generated on the eWay Bill Portal for the movement of goods. A GST registered person cannot transport goods worth more than Rs. 50,000 (Single Invoice/bill/delivery challan) in a vehicle without an e-way bill created on ewaybillgst.gov.in

Eway bills can also be generated or cancelled via SMS, Android App, and site-to-site connection via API by inputting the correct GSTIN of parties. Before using the GSTIN, validate it using the GST search tool.

All businesses registered under GST who transport items worth more than 50,000/- are required to utilize the GST e-way bill or waybill, according to rule 138 of the CGST (Central Products & Services Tax) Act. The E-Way bill itself acts as a compliance tool, ensuring that the things being transported comply with GST rules. Prior to the transfer, it is uploaded to the GST site, together with the essential details on the products being transferred. It makes it easier to track them down.

When a eway bill is generated, it is assigned a unique Eway Bill Number (EBN), which is available to the provider, recipient, and transporter.

Components of a GST E-Way Bill

The GST E-way bill is generated from the two sections, PART A and PART B.

The person causing the movement of the goods must provide information for Part A, including his or her GSTIN (GST number), delivery location (Pincode), invoice number (with date), value of the goods being transported, HSN code to classify the category of goods to calculate the tax slab, and document number based on mode of transport (Railway Receipt Number, Airway Bill Number, Bill of Lading Number, and so on).

Part B requires transportation information, such as vehicle specifications and a transporter ID. Part B transport data is utilized to generate the GST E-Way bill.

When should an e-way bill be issued?

When there is a movement of goods in a vehicle/conveyance worth more than Rs. 50,000 (either individually or in aggregate of all invoices in a vehicle/conveyance), an eWay bill will be created.

In the context of supply
For causes other than supply (for example, a return)
Because of an unregistered supply from the outside

A supply for this purpose could be either of the following:

A supply made in the course of business for a consideration (payment).
A supply made in exchange for a consideration (payment) that may or may not be in the course of business.

A supply made without money or consideration. In simple terms, the term supply usually refers to as following:
Payment is provided for the sale of commodities.
Transfer - for example, branch transfers
Barter/Exchange - where payment is made in items rather than money

As a result, e-way Bills for all of these sorts of movements must be generated on the shared platform. Even if the value of the consignment of Goods is less than Rs. 50,000, a e-way bill must be generated for specific designated Goods:

Inter-state transportation of goods by the Principal to the registered Job-worker
Inter-State Handicraft Goods Transport by a Dealer Exempt from GST Registration

The Advantages of e-way Bill:

Removes the bottleneck problems of the VAT taxing system's bill generation method. Similarly, different states imposed varied rules for creating E-Way Bills under the VAT system.
There is a stable and consistent mechanism for generating E-Way bills across the country under GST.
It provides a computerized interface for entering information and generating E-Way Bills, allowing for speedier transportation of products.
It tries to reduce turnaround time, travel time, and expenses by tracking the movement of items.

Components of a GST E-Way Bill

The GST E-way bill is generated from the two sections, PART A and PART B.

The person causing the movement of the goods must provide information for Part A, including his or her GSTIN (GST number), delivery location (Pincode), invoice number (with date), value of the goods being transported, HSN code to classify the category of goods to calculate the tax slab, and document number based on mode of transport (Railway Receipt Number, Airway Bill Number, Bill of Lading Number, and so on).

Part B requires transportation information, such as vehicle specifications and a transporter ID. Part B transport data is utilized to generate the GST E-Way bill.

Who requires the gst e-way bill?

Consignor/Consignee:

When either the Consignor/Consignee registered under GST transports goods worth more than 50,000, the respective individual must generate the E-Way Bill.

Transporter:

The E-way Bill will be generated once the goods have been assigned to the transporter to be carried.

Transporter by Default:

If neither the consignor nor the consignee has generated an E-Way Bill and the value of the items being transported exceeds 50,000/-, it is the transporter's responsibility to generate the E-Way Bill.

Job Worker Transfer:

When a principle in one state or union territory transfers products to a job worker in another, the principal generates the E-Way Bill regardless of the consignment amount.

How you can generate an e-way bill?

An E-Way Bill (EWB) is an 'electronic way' bill for goods transportation that can be generated using the E-Way Bill Portal. According to GST Council regulations, any supplier or transporter delivering goods worth more than Rs.50,000 (single invoice/bill/delivery challan) in a single vehicle must carry a GST e-way bill. To get a GST E-Way bill, the supplier or transporter of the goods must be registered with GST.

When an E-Way bill is generated on the portal using the needed credentials, the portal generates a unique E-Way Bill Number (EBN) and assigns it to the registered supplier, recipient, and carrier. In this piece, we will look at how to create an e-way bill on the Government website.

The supplier or the transporter can create the E-way bill through the following ways:

LEDGERS Software
E-Way bill portal SMS
Android App
Site-to-Site Integration (through API).

GST e-way bill validity:

The validity of an E-way bill is determined by the distance travelled.
The E-Way bill is valid for one day from the ' relevant date' for distances less than 100 km.
The 'relevant date' is the day when the GST E-Way bill was generated.
After the first hundred kilometres, an additional day is added to the existing 1-day E-Way bill validity from the relevant date.
According to the principles of validity, this is not an extension, but rather an addition.
The validity term cannot be extended in generally. Unless the commissioner issues a notification based on the category of goods.
Furthermore, if items are unable to be transported within the validity period, the transporter can alter the details in Part B of FORM GST EWB-01 and issue a new GST E-Way bill.

List of cases when e-way bill is not mandatory

In the following cases it is not necessary to generate e-Way Bill:

The mode of transportation is non-motorized vehicle.
Goods transported for Customs clearance from a Customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS).
Goods being carried under Customs control or with a Customs seal
Goods transferred from ICD to Customs port or from one custom station to another under Customs Bond.
Cargo moved to or from Nepal or Bhutan in transit
Goods movement generated by defense formations under the Ministry of Defense as a consignor or consignee
Cargo containers that are empty are being carried.
Consignor transporting goods to or from a weighbridge for weighing at a distance of 20 kilometers in length accompanied by a Delivery challan.
Goods are transported by rail where the consignor is the Central Government, a state government, or a local government.
Goods listed in the various State/Union territory GST Rules as exempt from E-Way bill requirements.

Documents Required for GST E-way bill generation services:

Invoice/ Bill of Supply/ Challan related to the consignment of goods
Transport by road – Transporter ID or Vehicle number
Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

Penalties for non-compliance of E-way bill system

In the following cases it is not necessary to generate e-Way Bill:

According to Rule 138 of the Consumer Goods and Services Tax Act (CGST) 2017, if E-Way bills are not issued in compliance with the provisions included in the CGST rules 2017, this would be regarded as a violation of the E-way bill system's regulations!
Section 122 stipulates that taxable individuals who carry taxable items without the required paperwork (including GST E-way bills) face a 10,000 rupees fine or are considered tax evaders under the E-way bill system guidelines. (Whichever is bigger when the application is made)
Individuals who transport goods or store them while in transit violate the provisions of the E-way bill system, according to Section 129 of the Consumer Goods and Services Tax Act (CGST) 2017. As a result, the products and documentation associated with them may be held or seized.

FAQs on GST E-way bill services

Question: Should I generate e-way bills in response to supply service invoices?
Answer: No, the rules for e-way bills do not apply to service-oriented transactions. As a result, you do not need to prepare an e-way bill for the delivery of services.

Question: Is a e-way bill required when the products are billed within a 10 km radius?

Answer: If the trip is less than 10 kilometres, no e-way bill is required. The speed limit has recently been raised to 50 km/h.

Question: What is exempted from the GST E-way bill?

Answer: Exempt items include personal and home objects, cash, precious and semi-precious stones, pearls, goldsmiths' and silversmiths' crafts, and jewelry.

Question: Can I combine two invoices into a single e-way bill?

Answer: No, a single e-way bill cannot be generated against two invoices.
Consolidated e-way bill, on the other hand, can be used to combine two or more e-way invoices.