What is an E-Way Bill?
What is the meaning of an E-Way Bill? It’s usually a one-of-a-kind bill number assigned to a specific consignment involving the transportation of goods. The person responsible for the conveyance must have a physical copy of the E-Way Bill, including information such as goods, recipient, consignor, and transporter. On April 1, 2018, the e-way bill went into effect.
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The electronic bill of lading’s primary goal in the GST provisions was to create a single national E-Way bill that suppliers and transporters across the country could use. The States were allowed to continue using their own separate E-Way bill systems until the national e-way bill was ready. However, the GST Council received several representations from the trade and transportation communities, claiming that the e-way bill was causing an unnecessary bottleneck in interstate goods movement, necessitating an earlier implementation of the E-Way bill.
Following this review, the GST Council announced a new date for the E-Way Bill’s nationwide rollout after reviewing the hardware and software readiness.
Purpose of E-Way Bills
When certain conditions are met, transporters must carry an E-Way bill when moving goods from one location to another under GST. Our goal here is to explore some of the topics surrounding E-Way Billing.
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Information Required to Generate E-Way Bills
The following information is required for the generation of the E-Way bill:
● Invoices/bills of supply/challans for shipments of goods
● By-road transport – Vehicle number or transporter ID
● Rail, air, or sea transportation – The transporter’s identification number, the transport document’s number, and the document’s date
E-Way Bill: Process to Generate It
The E-Way bill (EWB) portal is a one-stop shop, and this article will provide a definitive answer to how to generate an E-Way bill (single and consolidated) and change vehicle numbers on previously E-Way Bill Generate, how to cancel an E-Way bill, and much more.
E-Way bills can be generated using any one of the following methods:
● On the Web
● Via SMS
● By e-Invoicing
A Step-By-Step Guide on How to Generate E-Way Bills
Step 1
To use the E-Way bill system, you must first log in. The username, password, and captcha code must all be entered. Select ‘E-Way bill online login’ from the drop-down menu.
Step 2
Click ‘Generate new’ under the ‘E-way bill’ option on the dashboard’s left side.
Fill in the following fields on the screen that appears:
- Type of transaction: If you are supplying consignment items, select ‘Outward.’ If you are receiving consignment items, select ‘Inward.’
- Sub-type: Choose the appropriate sub-type for you. – If it is not listed, select one of the following document types: invoice, bill, challan, credit note, bill of entry, or others.
- Document No. : Input the document number.
- Date of Invoice, Challan, or Document: Choose the date of the invoice, challan, or document. The system will not allow the user to enter a date in the future.
- To/From For a supplier or a recipient, please fill out the To / From section details. To indicate that the person is an ‘Unregistered Person’ if a supplier or client is not registered, enter ‘URP’ in the GSTIN field.
- Details about the item: Enter the consignment’s details (HSN code-by-HSN code) in this section. On implementing E-Way bills, corresponding entries can also be auto-populated in the respective GST Return while filing on the GST portal based on the details entered here.
- Details about the transporter: This section must describe the mode of delivery (road, rail, ship, or air) and approximate distance travelled (E-Way Bill distance calculator).
The following details can be mentioned in addition to what has already been mentioned:
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○ Name of the transporter, transporter ID, transporter Doc. No., and Date
○ OR
○ The number of vehicles in which the consignment is being transported.
NOTE: For frequently used products, clients/customers, suppliers, and transporters, first update the ‘My masters’ section, which is also accessible from the GST E-Way bill login dashboard, and then proceed.
Step 3
Select ‘Submit’ from the drop-down menu. A message is displayed when the E-Way Bill Login system detects an error. If you fail to provide the requested information, an E-Way bill in Form EWB-01 will be generated with a unique 12-digit number.
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Step 4
The E-Way bill must be printed and carried for the goods being transported in the chosen mode of transportation.
E-Way Bill: When is It Generated?
One of the following could be used as a supply for this purpose:
- A supply is made for consideration in the course of business (payment).
- A proposal is made in exchange for a monetary consideration (payment) that is not necessarily in business.
- A supply made without thought (without payment).
To put it another way, the term ‘supply’ usually refers to:
- Sale: a transaction in which goods are sold and exchanged for money.
- Transfer: branch transfers, for example, Barter/Exchange – where goods are exchanged for money rather than cash.
As a result, E-Way Bills for all types of movements must be generated on the same portal. Even if the cost of the shipment of Goods is less than Rs. 50,000, the E-Way bill must be generated mandatorily for certain specified Goods:
- Inter-State Transport of goods by the principal to the job worker by the principal/registered job worker, and
- Inter-State Transport of handicraft items by a dealer exempt from GST E-Way Bill registration.
E-Way Bill: Who should Generate It?
Registered Individuals
An E-Way bill must be generated whenever goods worth more than Rs 50,000 are moved to or from a registered person. Even if the goods are worth less than Rs 50,000, a registered person or transporter may elect to generate and carry an E-Way bill.
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Unregistered Individuals
Unregistered individuals must also make an E-Way bill. When an unregistered person makes a supply shipment to a registered person, the receiver is responsible for ensuring that all compliance requirements are met as if they were the supplier. When unregistered transporters enrol on the E-Way bill portal, they will be given a Transporter ID, after which E-Way bills can be generated.
Transporter
Transporters who transport goods by road, air, rail, or other means must also create an e-Way Bill if the supplier has not yet generated a bill.
NOTE: If a transporter is shipping multiple item shipments in a single vehicle, the form GST E-Way Bill 02 can create a consolidated e-way bill by providing the e-way bill numbers for each shipment. If neither the consignor nor the consignee has created an e-way bill, the person in charge of transporting can do so by filling out PART A of FORM GST E-Way Bill01 using the invoice/bill of supply/delivery challan provided to them.
When is E-Way Bill not Required?
It is not necessary to create an E-Way Bill in the following situations:
- Non-motorised transportation is used.
- Items are transported to the Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs from a port, airport, air cargo complex, or land customs station.
- Items that are supervised by Customs or are sealed by Customs.
- Shipments are transported under a Customs Bond from an ICD to a Customs port or from one customs station.
- Cargo items are shipped to or from Nepal or Bhutan in transit.
- Transport of goods caused by a defence formation acting as a consignor or consignee under the Ministry of Defence.
- Empty cargo containers are being transported.
- Consignor transporting goods 20 kilometres between their place of business and a weighbridge for weighing, accompanied by a Delivery receipt.
- The Central Govt., State Govts., or a local body are the consignors of goods being transported by rail.
- Goods listed in the respective State/Union territory GST E-Way Bill Rules as exempt from E-Way bill requirements.
- Transportation of certain specified goods: Includes the list of exempt goods supplies, Annexure to Rule 138(14), goods treated as no supply under Schedule III, and certain schedules to Central Tax Rate notifications.
NOTE: When the distance between the consigner or consignee and the transporter is less than 50 kilometres, and the transportation is within the same state, Part B of the e-Way Bill is not required to be filled out. In other words, an E-way bill is not required for 50 km.
How is the Criterion “Value of Consignment of Goods” Applied?
The term “value of a consignment of goods” is defined as follows:
The invoice value* is greater than Rs. 50,000 OR – If a vehicle transports goods for multiple invoices, the total invoice value* must exceed Rs. 50,000. The invoice value refers to the total transaction value on the invoice, which includes all taxes but excludes the value of exempt goods transported with taxable goods and billed together.
E-Way Bill Validity
People in a few states (Eg: E-Way Bill Karnataka, E-Way Bill Delhi, E-Way Bill Tamil Nadu), however, have been given relief by being exempted from the generation of E-Way bills if their monetary E-Way Bill limit falls below a certain threshold amount or if they purchase certain specified items. For example, Tamil Nadu has exempted its residents from generating E-Way bills if the value of the items is less than Rs. 1 Lakh.
The above-mentioned detailed breakdown of what an e-way bill is, must have helped you understand the basics and importance of an e-way bill in the financial system. Not only is it a mandatory step in successfully transporting goods, but it is also a critical element of a successful business. If you still need an expert legal and financial consultant to help you navigate through things like an e-way bill, you will certainly find the right consultant at NoBroker. Please leave a comment below this article, our executive will be in touch with you soon.
Frequently Asked Questions about E-Way Bill
Q. What are the transporter’s responsibilities and liabilities in the E-Way bill system?
Answer – Transporters transporting goods by road, air, rail, and other modes of transportation must also generate an EWB if the supplier has not done so for any reason. Create an E-Way bill based on information shared by suppliers and consignors about the invoice/challan. Suppose the transporter fails to generate when required in the above circumstances. In that case, he may be subject to a penalty of Rs 10,000 or the tax sought to be evaded (whichever is greater) and the confiscation of goods and seizure of the vehicle.
Q. How many e-way bills are required to ship a consignment to a customer with multiple transporters (each with a different Transporter ID)? Since there is only one end customer, how will the one invoice-one e-way bill validation be implemented?
Answer: Against the receipt, 1 E-Way bill must be generated. By updating the transporter ID on the E-Way bill portal, the transporter can also reassign another person as the transporter. The seller absolutely cannot make any alterations to the assigned transporter after the transporter reassigns another transporter because different e-way bills against a single receipt are not possible and will cause E-Way Bill login problems in populating the data. The user must generate different delivery challans against the invoice based on the different Transporter IDs.
Q. If the value of a shipment per customer per day exceeds Rs 50,000, is an e-Way bill required? How are we going to combine multiple invoices into a single e-way bill?
Answer: Whether the supplier is also the transporter or not is a critical factor in this situation. If he is the transporter, he must create an e-way bill for all the specified invoices; if not, the transporter must create an e-way bill for all specified invoices in the vehicle.
Q. When selecting a subtype for outward supply, what do the important words “CKD/SKD” and “Line sales” mean?
Answer – “CKD/SKD” basically refers to the movement of entirely or partially knocked down goods. For example, consider the movement of a fan in various parts that will be assembled later. Vertical sales made from one unit of a corporation to the next unit in the production line within that organisation are referred to as “line sales.”
