GST E-way Bill Process

What is the GST E-way Bill Process?

The electronic way bill (E-way bill) is a document that is generated electronically for the movement of goods from one place to another. E-way bill is the GST version of Way bill, which covers both intra-state and the inter-state consignment or transportation of goods that are above Rs.50000. It is compulsory to generate E-way bill for movement of goods across and within states except in Delhi.

When to generate E-way bill

Before the movement of goods, either within the state or from one state to the other, e-way bill should be generated. E-way bill will be generated when there is a conveyance of goods above the value of Rs.50000 in a motor vehicle (either each invoice or consolidated invoice of multiple consignments).

The conveyance of goods might be in relation to supply. The conveyance might also be for reasons other than supply (for instance, return), or inward supply from an unregistered person. Supply here refers to a payment made in the course of business (sale), a payment that may not be in the course of business (supply return), or a barter/exchange (with no consideration of payment).

In some special situations, e-way bill can be generated even if the value of supply is less than Rs.50000. For instance, inter-state movement of goods from the principal to the job-worker and transport of handicraft goods by a dealer exempted from GST registration.

How to Generate E-way bill

The two ways to generate e-way bill is through the e-way bill system online or via SMS. Note that to generate e-way bill through any of these two methods some documents are required.

  • Invoice/Bill/Challan related to the consignment of goods
  • Transporter ID or the vehicle number if transport is by road
  • Transporter ID, transport document number and date if transport is by air, rail, or ship.

The first step to follow to generate e-way bill is to register on the EWB portal. After registration, you can login anytime on the e-way bill system online to generate your e-way bill.

The validity of EWB depends on the distance covered for the movement of goods. For goods less than 100kms it is valid for one day, for the distance over 100kms, then additional one day for every additional 100kms covered.

Who should generate e-way bill?

  1. For registered person
  • Every GST registered person who causes a movement of goods of consignment needs to generate EWB.
  • In a case where the registered person handed the consignment to a transporter, then the transporter will generate the EWB with the information provided by the registered person.
  1. For unregistered person
  • If the movement of goods was done by a person who is not registered under GST, either through his own conveyance, a hired conveyance or through a transporter, the person will generate the e-way bill himself.
  • If the conveyance is made from an unregistered person to a registered person, then the recipient will have to ensure compliance with the e-way bill rules.

Note that transporter must ensure the e-way bill for goods that are above Rs.50000 are generated as the refusal to generate it attracts a penalty or likely confiscation of goods.

There are certain circumstances that do not necessitate the generation of e-way bill. For instance, if the transportation distance is less than 10km within the state or union territory, if the item is not transported via motor vehicle or certain goods exempt from e-way bill requirement among others.

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