An Eway Bill is an electronically generated document that is used to transport goods across India. It enables businesses to carry out various activities during the process of transportation, such as payment of taxes, filing returns, etc., without any disruption in the transportation process. This article provides an overview of what Eway Bills are and how they can be used.
Table of Contents
What is an Eway Bill?
An Eway Bill is an electronically generated document that acts as a go-between between the supplier of goods or services and the recipient while they are being transported. It is issued by a registered vendor, the generator, and is valid for 15 days from the date of issuance. The bill contains details such as the GSTIN number of the supplier, consignee’s name and address, type of goods being transported and its value. A copy of this bill should be carried physically or electronically for any transportation beyond 10 kilometers between two states in India.
Who Must Generate an Eway Bill?
An Eway Bill must be generated if a registered dealer is moving goods worth over INR 50,000 (including both goods and services) in a vehicle that weighs more than 10 kilograms. The Eway Bill must be generated by the consignor or consignee, who must ensure that the document is carried along with the goods during transportation. The transporter of goods must also carry the bill if their journey exceeds 10 kilometers between one state to another. The generator of an eWay Bill must provide all details such as invoice/bill number, value of goods, and other details required for transport of goods.
When do You Need to Generate the Eway Bill?
An eWay bill must be generated whenever the goods being transported cost more than INR 50,000 and the weight of goods is greater than 10 kilograms. Dealers who are transporting the goods themselves or through their staff must also generate an eway bill. If goods are goods are securely escorted with a police officer, then no eWay bill is required. For interstate transportation, an eway bill must be generated if a journey exceeds 10 kilometers between one state to another.
Cases when eWay bill is Not Required?
An e-way bill is not required in certain cases as specified in the GST laws of India, These are the situations where e-way bill is not required to be generated:
- Transportation of goods that are considered to be of “non-commercial nature”
- Transportation of goods that are considered to be “exempted” under the GST laws
- Transportation of goods within a radius of 50 KM from the place of business for reasons other than supply, like for job work or for repair or for return after completion of job work or repair, etc
- Transportation of goods by certain specified individuals, such as an individual carrying goods for personal use or a handicapped person.
- Transportation of goods by Rail or Air, it is considered that the way bill already generated by the railway or air carrier is sufficient to consider as e-way bill.
It is important to note that the above exemptions are not exhaustive, and it’s advisable to check the GST laws and guidelines to determine when an e-way bill is not required for transportation of goods.
How is the Validity of an Eway Bill Calculated?
The validity of an eway bill is determined by the distance between two places stated on the eWay Bill. For inter-state or intra-state journeys of more than 100 kilometers, the duration is 1 day for each additional 100 km. Similarly, if the value of goods specified in the consignment exceeds Rs. 50,000, then the validity period begins when it reaches its destination. The validity of an eWay bill can be extended up to fifteen days and must be done so prior to the expiration of its original validity period.
Status of Implementation across India?
he e-way bill system for the movement of goods in India was implemented on a trial basis in select states starting in January 2018, and was rolled out nationwide on April 1, 2018. The implementation of the e-way bill system was intended to help simplify the process of transporting goods by reducing the need for physical documentation, and to help the government keep track of the movement of goods for tax purposes.
The Indian government has implemented the e-way bill system as a measure to help combat tax evasion, and to ensure that GST is being correctly collected and remitted to the government. Initially, there were some issues with the system, like technical glitches and lack of awareness among taxpayers, but over time, the system has been stabilized and became more user-friendly. Also, Government has taken measures to increase the compliance and enforcement of e-way bill.
Since it’s implementation, e-way bill has become a necessary document for the movement of goods above a certain value across India. Businesses are required to comply with the e-way bill requirements, failure to do so may result in penalties or fines. Therefore, it is important for businesses to stay up to date with the e-way bill requirements and guidelines, and to comply with the laws and regulations in order to avoid any legal issues.
![Eway Bill](https://gogst.in/wp-content/uploads/2023/01/woman-reading-payment-bill-1024x659.png)
How to generate eWay Bill?
The e-way bill can be generated through the GST portal, which can be accessed online. The process of generating an e-way bill is relatively straightforward and can be completed in a few steps:
- Visit the official e-way bill portal: https://ewaybillgst.gov.in/
- Login to the portal using your GSTIN (Goods and Services Tax Identification Number) and password.
- Select the “Generate new” option from the dashboard.
- Fill in the details of the goods being transported, including the GSTIN of the supplier and the recipient, the value of the goods, the vehicle number, and the place of loading and unloading.
- Once all the details are entered, click on the “Submit” button to generate the e-way bill.
- A unique e-way bill number (EBN) will be generated and can be viewed and printed from the portal.
- The transporter can also update the transporter’s details, the vehicle number and the transport document number in the e-way bill.
- The person in charge of transporting the goods is required to carry the e-way bill while transporting the goods.
It’s important to ensure that all the details provided are accurate and correct, as inaccurate or incorrect information can result in issues with the e-way bill and may lead to fines or penalties.
Validity of eWay Bill?
The validity of an e-way bill depends on the distance the goods are being transported. The e-way bill system has provisions for different validity periods depending on the distance the goods are being transported:
- For distances up to 100 KM: The e-way bill is valid for one day from the date of generation.
- For distances between 100 KM to 300 KM: The e-way bill is valid for three days from the date of generation.
- For distances beyond 300 KM: The e-way bill is valid for five days from the date of generation.
It’s important to note that the above validity periods are calculated from the date of generation of the e-way bill, not from the date of commencement of movement of goods. Also, If the goods are not transported within the validity period, a new e-way bill will have to be generated.
Additionally, The e-way bill can be extended for a maximum of 15 days by applying for an extension on the e-way bill portal. This can be done if the goods could not be transported within the validity period of the e-way bill due to reasons beyond the control of the person transporting the goods.
In case of any discrepancy in the movement of goods, it is mandatory to update the status of the e-way bill and reasons for not transporting the goods within the validity period.
Documents required?
When generating an e-way bill, certain documents may be required depending on the circumstances of the movement of goods. The following documents may be required:
- Invoice or Bill of Supply: This document is required to provide the details of the goods being transported, including the value of the goods and the GSTIN of the supplier and the recipient.
- Transporter ID: This is the ID of the transporter who is transporting the goods, such as a Vehicle number, or a Transporter ID registered on the e-way bill portal.
- Goods Transport Agency (GTA) bill: In case goods are being transported by a GTA, a copy of the GTA bill is required.
- Delivery Challan: In case goods are being transported for reasons other than supply, a delivery challan is required as a proof.
- HSRP or color-coded sticker: If the vehicle is transporting the goods under HSRP or color-coded sticker which is affixed to the vehicle.
These documents may be required while generating the e-way bill, and the person in charge of transporting the goods is also required to carry these documents while transporting the goods. It is important to check the GST laws and guidelines for specific details on the documents required for the movement of goods, as this can vary depending on the type of goods being transported and the specific circumstances of the movement of goods.
FAQs
There are several frequently asked questions about the e-way bill system in India, some of them include:
- What is the e-way bill? An e-way bill is an electronically generated document required in India for the movement of goods worth more than a certain value, as mandated by the Indian government. It is intended to help simplify the process of transporting goods by reducing the need for physical documentation, and to help the government keep track of the movement of goods for tax purposes.
- Who is responsible for generating the e-way bill? The e-way bill must be generated by the person responsible for the movement of goods, which is usually the supplier, the recipient, or the transporters on behalf of the supplier or recipient. The responsibility to generate an e-way bill can vary depending on the circumstances of the movement of goods and the type of goods being transported.
- What are the documents required to generate an e-way bill? While generating an e-way bill, certain documents may be required depending on the circumstances of the movement of goods. The invoice or bill of supply, Transporter ID, the GTA bill, Delivery Challan or HSRP or color-coded sticker are the commonly required documents.
- What is the validity of an e-way bill? The validity of an e-way bill depends on the distance the goods are being transported. For distances up to 100 KM, it is valid for one day, for distances between 100 KM to 300 KM it is valid for three days, and for distances beyond 300 KM it is valid for five days. It can be extended for a maximum of 15 days by applying for an extension on the e-way bill portal.
- What are the penalties for non-compliance with the e-way bill system? Penalties for non-compliance with the e-way bill system can include fines and penalties. Penalties for failing to generate an e-way bill when required, or for providing inaccurate or incorrect information on an e-way bill can be significant and can lead to legal issues for businesses.
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