The implementation of a nationwide goods and services tax (GST) has changed the way businesses handle their supply chains. To prevent intermediaries from exploiting the system, various safeguards have been introduced to monitor transactions.
The e-way bill is one of the measures implemented with this objective. The e-way bill for GST was rolled out from April 1, 2019. It is applicable for all inter-state movement of goods that have a value exceeding set thresholds. This article covers everything you need to know about the e-way bill exemption for GST, including its eligibility criteria and more.
What is an E-Way Bill in Simple terms?
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The e-way bill is a document that is generated online to record the movement of goods either within a state or between two states. The GST gst e way bill Council has mandated the implementation of an e-way bill system for any movement of goods above a value of Rs 50,000.
The e-way bill mechanism is applicable for both inter-state and intra-state movement of goods. However, if the distance between the two is less than 100 kilometers, the intra-state e-way bill is not applicable.
The e-way bill is a single document that can be generated by registered suppliers and business owners for goods being transported from one place to another. It is a good faith effort to ensure that movement of goods does not fall into the tax evasion category.
The e-way bill system is expected to be beneficial for all the stakeholders involved in the supply chain.
Who needs to register for an E-Way Bill?
The E-way bill is mandatory for all inter-state movements of goods. For intra-state movements, it is required for goods that have a value exceeding Rs 50,000.
The inter-state e-way bill is applicable for the following types of goods:
Although the above are the goods that are mandatory for e-way bill generation, it is prudent to generate e-way bills even when the goods being transported are not of the above types. This is because the e-way bill system can be used by various government agencies to track movement of goods.
How does the GST e way bill login bill benefit businesses?
The e-way bill system is expected to reduce delays in the transportation of goods. It will also help boost compliance by way of a real-time monitoring system. With the e-way bill, businesses can reduce the amount of time it takes to transport goods from one state to another.
The time-efficiency of the e-way bill will offset the initial investment that businesses need to make given that it is a one-time investment. With the help of the e-way bill system, the chances of businesses being held up at state borders and other checkpoints in the country are expected to be greatly reduced.
The e-way bill system has been designed to prevent tax evasion and curb the black economy. Therefore, it is necessary to adhere to the conditions and timelines specified by the government.