E-Way Bills are electronic documents required for the movement of goods exceeding Rs. 50,000 from one place to another in India excluding Delhi. Where the value of goods is more than Rs. 1 lakh, an e-way bill is required for movement of goods within Delhi.
Regardless of whether goods are being transported interstate or intrastate, this document must be generated online. Each state and union territory of India shall be able to use the e-way bill generated in their state.
When does GST apply to e-way bills?
For the movement of goods between states, the e-way bill under GST Regime will be applicable starting 1st April 2018.
E-way bills have been introduced phase-by-phase for movement of goods within the state beginning on 15th April 2018 and ending on 16th June 2018. E-way bills are now applicable in all states after the phased rollout was completed.
Under the GST Regime, the E-Way Bill replaces the Way Bill that was required under the VAT Regime. In the VAT Regime, the way bill was a physical document that was required for the movement of goods. In the GST Regime, the physical VAT document has been replaced with an electronically generated document.
E-way bills will be generated by whom?
GST requires e-way bills to be generated by
- Every registered person who causes the movement of goods of consignment
- As part of a supply (e.g. sales); or
- In the case of sales returns, branch transfers, etc.; or
- As a result of inward supply from an unregistered source
- Unregistered persons who cause goods to move.
Registered Person’s E-Way Bill
Registered persons can generate e-way bills in Form GST EWB 01 electronically on the common portal if they supply goods as consignors (i.e. seller) or consignees (i.e. buyers), regardless of whether they use their own conveyance or a hired one, rail, air, or vessel. By providing information in Part B of Form GST EWB 01, the registered person or recipient can generate an e-way bill on the common portal.
The transporter is responsible for generating the e-way bill if the registered person causes the movement of goods and hand them over to the transporter for road transportation.
The registered person shall first furnish the information relating to the transporter in Part B of Form GST EWB 01 on gst.gov.in, while the transporter shall generate the e-way bill based on the information furnished by the registered person in Part A of Form GST EQB 01 by the transporter.
GST EWB 01 notes for furnishing details
- In Column A.6, taxpayers with an annual turnover up to Rs. 5 Crores in the preceding financial year shall indicate their HSN code at a minimum of 2 digits, while taxpayers with an annual turnover over Rs. 5 Crores should indicate their HSN code at a minimum of 4 digits.
- Numbers assigned to Transport Documents indicate either Goods Receipt Numbers, Railway Receipt Numbers, or Airway Bill Numbers.rs.
- The PIN code of the delivery place shall be used as the Place of Delivery.
- The reason for transportation shall be either (1) Supply, (2) Export or Import, (3) Job Work, (4) SKD or CKD, or (5) Recipient not known, or (6) Live Sales, (7) Sales Return, or (8) Exhibition or fairs, or (9) For own use, or (10) Others.
Unregistered person’s E-Way Bill
If the movement of goods is performed by someone who is not registered under GST, either through his own conveyance, a hired conveyance, or by a transporter, the e-way bill shall be generated by the unregistered person himself or by the transporter.
Therefore, even if a person is unregistered, he must generate the e-way bill himself or through the transporter if he is transporting the goods.
GST EWB-01 shall be generated on GST.gov.in. It is also possible for an unregistered individual to generate an e-way bill on the GST Portal even if he is not registered.
In case of an unregistered person selling to a registered person, an E-way Bill is required
As long as the registered person is known at the time of commencement of movement of goods, it would be considered that the registered person caused the movement of goods.
As a result, the registered person or the transporter must complete the e-way bill formalities.
- Consignors or consignees who have not generated the e-way bill and whose consignment is valued over Rs. 50,000 must generate Form GST EWB 01 on the basis of their invoice or bill of supply.
- Prior to transferring goods from one conveyance to another in transit, transporters must update the details of the conveyance on GST.gov.in
- The transporter must indicate the serial number of each e-way bill generated individually for each of such consignments electronically on the common platform in case multiple consignments are intended to be transported in one conveyance. Prior to the movement of goods, he may generate a consolidated e-way bill in Form GST EWB 02 on the GST Website.
A notification of the generation of an E-Way Bill
- A unique e-way bill number (EBN) will be generated upon generation of the e-way bill and will be available to the supplier, recipient and transporter on the GST Website for filling out Form GSTR 1.
- Within 72 hours of receiving the eway bill limit in rajasthan, the recipient must confirm acceptance or rejection of the consignment.
- When the recipient does not communicate his acceptance or rejection within 72 hours of the details being made available on the GST Website, it will be assumed that he has accepted them.
Document and conveyance verification
- Commissioners or officers empowered by them may authorise the proper officer to intercept any conveyance to verify the e-way bill or e-way bill number in physical form.
- The commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out, and that such device readers will be used to verify the movement of vehicles where the e-way bill is mapped.
- Conveyances must be physically verified by the proper officer as authorized by the Commissioner or by an officer empowered by him. In case of specific information on tax evasion, physical verification of a particular conveyance can also be carried out by any officer after obtaining the approval of the Commissioner or an officer authorized by him.
Goods Inspection and Verification
- A summary report of every inspection of goods in transit shall be entered online by the proper officer in Part A of Form GST EWB 03 within 24 hours of inspection, and the final report in Part B of Form GST EWB 03 within 3 days of inspection.
- If a physical inspection of goods being transported on any conveyance has taken place during transit at one place within a state, no further physical inspection of the conveyance should be carried out unless further information regarding tax evasion becomes available.
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