Complete Analysis of GST E Way Bill

GST E Way Bill has become an integral part of the Indian taxation system after its implementation in April 2018. It is a document issued by a registered supplier, a transporter or an e-commerce operator to move goods from one place to another. The GST E Way Bill is mandatory for any movement of goods worth more than INR 50,000 within the country.

What is an E Way Bill?

An E Way Bill is a document that is required to be generated electronically on the GST portal by registered persons who intend to move goods worth more than INR 50,000 from one place to another.

Who should generate an E Way Bill?

The registered person who intends to move goods worth more than INR 50,000 from one place to another needs to generate an E Way Bill. Apart from the registered supplier, the transporter or e-commerce operator can also generate the E Way Bill.

When should an E Way Bill be generated?

An E Way Bill should be generated before the commencement of the movement of goods. It is mandatory for any movement of goods worth more than INR 50,000, including movement of goods within the state, movement of goods from one state to another, or movement of goods from India to another country.

What are the details required for generating an E Way Bill?

For generating an E Way Bill, the following details are required:

Details of the supplier, recipient and transporter.
Invoice or bill of supply or delivery challan.
HSN code of goods.
Goods value and tax rates.
Transport document number and date.

Validity of E Way Bill

The validity of the E Way Bill depends on the distance travelled by the goods. The validity of the E Way Bill is as follows:

For distance up to 100 km - 1 day
For every additional 100 km or part thereof - 1 additional day
Validity of the E Way Bill cannot exceed 15 days

Cancelation of E Way Bill

The E Way Bill can be cancelled by the generator of the E Way Bill or the transporter if the goods are not transported. The E Way Bill can be cancelled within 24 hours of the generation of the E Way Bill. The E Way Bill can also be cancelled by the recipient of the goods if the goods are non-deliverable or not as per the order.

Penalties for non-compliance

If the person fails to generate the E Way Bill or does not carry the E Way Bill during the transportation of goods, a penalty of INR 10,000 or the amount of tax sought to be evaded, whichever is higher, shall be imposed.

Conclusion

GST E Way Bill is a crucial document for any movement of goods worth more than INR 50,000 within the country. Taxpayers should comply with the rules and regulations related to the E Way Bill to avoid any penalties. This comprehensive guide aims to provide clarity on the various aspects of the E Way Bill and help Indian small and medium business owners and startup founders understand the nuances of this important document.