What is an E-Way Bill under GST?

Goods and Services tax implies that all the transporters need to carry an E-Way bill, at the time of transporting goods from one destination to another destination. This is related to satisfying of certain conditions.

E-Way bill is an electronic way bill, needed for transporting goods from one place to another place. The bill is generated by the portal of E-Way bill. Any transportation of goods valuing for more than Rs 50,000 in a single invoice or in a single delivery challan can never be made by a person, who is registered in GSTIN without an E-Way bill.

An E-Way bill can also be generated or cancelled through the process of sending a SMS. E-Way bill also can be generated or cancelled via Android App or by integration of web sites, through the use of Application Programming Interface.

A unique E-Way bill number or an EBN is generated the moment an E-Way bill is generated. This EBN is allocated to and is available with the supplier, the recipient and the transporter.

E-Way Bill under GST

E-Way bill GST Rules and Compliance

Way bills were required previously at the time of transporting goods from one place to another place, to facilitate the supply of goods. This procedure was adopted before the Goods and Service Tax came into existence. This Way bill, which was a physical document, could be obtained from the authorities of Value Added Tax, or VAT. This process of procuring a Way bill was very complicated, because of the compliance requirements around thE-Way bills. This created great hindrances in movement of goods from one place to another place, especially across the states, in India.

When should E-Way Bill be issued?

An E-Way bill should be generated at the time of inter state or intra state movement of goods. These goods are being moved for supply, or for other reasons, other than supply, a unregistered person making an inward supply etc.

An E-Way bill is also required at the time of transferring goods from one vehicle to another vehicle. If there is multiple consignment on a single vehicle, a consolidated E-Way bill will also serve the purpose

This E-Way bill can easily be generated through E-Way bill manager, which can be integrated with the user’s Enterprise Resource Planning or ERP.

What is supply in relation to E-Way Bill?

Supply related to E-Way bill can be any thing from the under mentioned:

  • Sale of goods and making of payments.
  • Transfer of goods across branches of same business.
  • Payment of goods by goods instead of money, by Barter system, at the time of purchasing the goods.
  • Supply of goods made for making a payment, in the business transaction.
  • Supply of goods made for making a payment, not in the business transaction.
  • Supplies of goods made without any consideration in course of business.

Who is authorised to generate E-Way Bill?

  1. The registered person can generate an E-Way bill, if the value of goods in transition is more than Rs 50,000/-. The registered person or the transporter must generate an E-Way Bill, in this condition. The bill can also be generated if the goods in transition is valuing less than Rs 50,000/-.
  2. This E-Way bill can also be generated by an un registered person or a transporter. If the supplies of goods are made by an un authorised person to a registered person, the registered person has to bear all the responsibilities and do all the compliances, as if the registered person is the actual supplier of goods.

Validity of E-Way Bill

An E-Way bill is valid for different time periods. This validity time is decided on the distance travelled by the goods, while being transported from one place to another. Validity period of an E-Way bill is always calculated from the date and time of generating the E Bill, by the valid authority

If the goods have travelled a distance of less than 100 kms, the validity of the E-Way bill will be just one day. An extra day for validity of the E-Way bill will be granted for every 100 kms the goods in transit travels, while being transported to its destination.

What happens if the E-Way Bill expires?

The movement and the transportation of the concerned goods needs to be immediately stopped, at the moment the E-Way bill expires. An extension of the E-Way bill can be granted in case of exceptional situations, by the commissioner of the state.

List of items exempt from E-Way Bill

Some items have been exempted from the compliance binding of GST rules. These are mainly perishable items, such as, vegetables, meat, bread, curd, books and jewellery.

There are some other items, other than perishable items, which have been exempted from the GST compliance rules of having an E-Way bill. These items are contraceptives, Judicial or Non-judicial stamp papers, Newspapers, Khadi, Raw Silk, Indian National Flag, hairs from human heads, kaajal, Pots made of earth ware, cheques, municipal waste, Puja samagri, LPG or Liquid Petroleum Gas, Kerosene oil, Heating aids and national currency notes or coins.

E-Way bills need not to be generated if the transported goods are moved on a non-motorised vehicle, or by some other mode of conveyance. E-Way bill need not be generated if the goods are being transported from a sea port, from an airport, from an air cargo complex and from a land custom station, to a depot of inland container or to an inland container freight station, for clearance by the custom authority.

Can I modify or cancel the E-Way Bill?

Once an E-Way bill is generated, it can neither be modified or cancelled by any source, or for any reason. The E-Way bill can only be cancelled, if the goods in question, need not be transported, or the mode of transportation is changed. This generated E-Way bill must be cancelled within 24 hours of its generation.

In case of any rejection of the consignment by the recipient, the old bill may be cancelled and a new E-Way bill is to be generated for Sales return.

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Due Dates

  • Deadline for filing income-tax returns (ITR) for FY 2019-20 (AY 2020-21)

    Jan 10th ,2021
  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for December 2020

    Jan 10th ,2021
  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for December 2020

    Jan 10th ,2021
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    Jan 13th ,2021