What is an E-way bill?
E-way bill is an important document created while uploading the details of the transaction and transportation before initiating the movement of goods. It comprises the goods detail, invoice number, value of goods, GSTIN of the receiver, and HSN of goods. The e-way bill number is twelve digits, and this bill has a QR code which aids in the quick verification of the E-way bill by the tax officers.
When is an E-way bill needed?
When the goods are moved, and the value goes above 50000 INR, the registered person responsible for the movement of goods must create an E-way bill before starting the shifting of goods.
The E-way bill is created for delivery of less than 50000 INR. The 50000 INR limit is not accessible under the following circumstances:
1. When goods are delivered by the main inter-state related to the job.
2. When handicraft goods are transferred inter-state by a person who is excused from the requirement of getting registration.
Who will create the E-way bill?
Four stakeholders, such as the transporter, supplier, recipient, and tax officers, are engaged in the transportation of the goods from one place to another. Therefore, creating an E-way bill is the liability of any of the primary three stakeholders.
E-way Bill registration
To access the E-way bill system, one must get E-way bill registration at the e-Way Bill portal. The above-stated three stakeholders, after getting registered, will register themselves utilizing the GSTIN. Also, there is one alternative for non-registered transporters to register themselves properly.
The registered individuals get E-way bill registration by inserting the OTP and GSTIN on the website. After putting the GSTIN, every piece of information will be auto-populated, and the user must enter the OTP, which will be delivered to the registered mobile number.
Following this, a Password and user ID are made for logins. The non-registered transporter can register themselves by giving the specifications of the business location, business type, PAN, Aadhar authentication etc. After delivering the specimen of 15 digits, TRANS ID to enter the detail when generating an E-way bill to let the transporter insert the vehicle number for the goods movement.
How to generate an E-Way bill?
- Once the user logs in to the system, choose "Generate E-way bill" below the "E-way bill" alternative option. Then, Form GST EWB-01 (Part-A and Part-B) are shown.
- Primarily, the user must choose the kind of transaction that is inward or outward.
- Outward denotes user is supplying the goods, and inward implies that the user is acquiring the goods. After choosing the kind of transaction, select the sub-type of transaction.
- Then, the document type, date, and number are inserted according to the invoice with the consignment.
- For outward supply, every supplier specification must be auto-populated in the "from" table. Further, the supplier specifications must be inserted for inward supply, and if the supplier is non-registered, then the user should insert GSTIN as URP.
- For outward supply, every detail of the recipient must be inserted in case the recipient is not registered; then the user must enter GSTIN as URP, and for inward supply, the recipient's address, name, and GSTIN must be auto-populated.
- Every detail relevant to HSN, goods, GST, and value would be entered. Following that, the user would choose the mode of transportation- railways, roadways, ships, or airways.
- The above information will be accessible to the registered supplier for filing GSTR-1. If the non-registered supplier provides the information mentioned above, he might be notified electronically if the mail id or mobile number is accessible.
- Regardless of the above information, the user will upload a tax invoice in FORM GST INV-1, in which Part-A of FORM GST EWB-01 would be auto-populated.
- If the user is conducting transportation via a third party, then the user must create the E-way bill by putting the transporter's specifications that have the transporter document's number, transporter ID, and date provided by the transporter.
- If an E-way bill is created by inserting the transporter ID, then the transporter needs to login into the account to insert the vehicle number when the goods are moved.
- Nevertheless, the vehicle number is not at all needed if goods are shifted from the consignor's location to the transporter's location for the transportation of the distance, i.e. less than ten kilometres.
- Every detail stated above will be put by the transporter to make the E-way bill if the recipient or supplier does not make it. After delivering, a 12-digit number E-way bill is made, which is delivered to the recipient, supplier, and transporter on the mutual portal.
Revising Vehicle Number
The user can revise the vehicle number if it was not inserted when creating E-way Bill or if the vehicle is altered.
You can update it by choosing "Update Vehicle Number." However, for intra-state movement of fewer than ten kilometres from the transporter place to the recipient place, the specification of conveyance will not be updated.
Authority of E-way bill
E-way bill is suitable for a 100 km distance for one day and an extra day.
One day is evaluated from the time and day the E-way bill was created. The E-way bill created as per GST rule 138 of any state is suitable for any union territory or state.
Withdrawing E-way bill:
E-way bills can be annulled within 24 hours if goods are transported or not according to the generated E-way bill. Nevertheless, it cannot be withdrawn if an authorized officer checks an E-way bill.
Creating combined E-way bill:
The system enables the transporter to make a blended E-way bill in FORM GST EWB-02 by including every E-way bill number.
When is the eWay bill not needed?
In the following cases, it is not significant to have an e-Way bill registration:
1. The form of transport is the non-motor automobile.
2. Airport, air cargo complex, Goods transported from Customs port, or Container Freight Station (CFS) for clearance by Customs, land customs station to Inland Container Depot (ICD) or.
3. Goods transported under Customs administration or customs shutdown.
4. Transit cargo delivered from Nepal or Bhutan
5. Movement of goods caused by defence configuration under the Ministry of Defence as a consignor
6. Empty Cargo containers are being moved.
7. Transporting goods are moved between one location and for a distance of twenty km with a delivery challan.
8. Goods transported with railways wherein the Goods consignor is the state government, central government, or local authority.
9. Goods denoted as not liable from E-way bill requisites in the specific union territory/state GST rules.
The Final Thoughts
E-way bill system has progressed a lot with the novel amendments on April 1st, 2019, which was to auto-populate the path distance according to the codes and pin of the recipient and the supplier and the facility to expand EWB when goods are in a movement that made the system more accessible.
Additionally, the mechanism's main purpose was to provide an incorporated facility that would facilitate the transportation transactions between recipients and suppliers.
