May 5, 2023

Electronic Way Bill in GST- All you wanted to know

Electronic Way Bill, commonly known as E-Way Bill, is an electronic document required to be generated for the movement of goods of value exceeding Rs. 50,000 under the Goods and Services Tax (GST) regime in India. The E-Way Bill system aims to bring uniformity and eliminate the need for multiple compliance checks on the transport of goods across different states.

Here are some important things to know about the E-Way Bill system:

1. Applicability: E-Way Bill is mandatory for the inter-state movement of goods of value exceeding Rs. 50,000. It is also required for intra-state movement of goods in certain states which have adopted this system.

2. Generation: E-Way Bill can be generated through the GSTN portal or mobile app by the registered supplier or recipient of goods, or the transporter. It is valid for different periods depending on the distance of the transportation.

3. Exemptions: E-Way Bill is not required for goods transported by non-motorized conveyances, specified goods such as petrol, diesel, aviation turbine fuel, etc., and certain categories of transport such as defense, railways, etc.

4. Verification: The E-Way Bill system enables tax authorities to verify whether the movement of goods is as per the documents and rules, and detect any discrepancies in the valuation or classification of goods.

5. Penalty: Non-compliance with the E-Way Bill system can result in penalties ranging from Rs. 10,000 to Rs. 1 lakh, depending on the value of the goods.

Overall, the E-Way Bill system aims to ensure the seamless movement of goods and reduce the compliance burden for businesses.

Who should generate the e-Way Bill and Why?

The e-Way Bill should be generated by the following persons:

1. Registered person: A registered person is required to generate the e-Way Bill when there is a movement of goods of more than Rs. 50,000 in value to or from a registered person. The registered person can be the supplier, recipient, or the transporter of the goods.

2. Unregistered person: An unregistered person who causes the movement of goods, whether as a supplier or a recipient, is required to generate the e-Way Bill.

3. Transporter: The transporter is required to generate the e-Way Bill when the supplier or the recipient has not generated the e-Way Bill and the value of the consignment is more than Rs. 50,000.

The e-Way Bill is generated to ensure the seamless movement of goods across the country and to provide a single document for all types of goods movement. It helps in the verification of the movement of goods by the tax authorities and also helps to reduce the instances of tax evasion. The e-Way Bill also facilitates the smooth and hassle-free movement of goods, saving time and costs for businesses.

How is it generated?

The e-Way Bill is generated electronically on the e-Way Bill Portal, which is a government-run website. The process of generating an e-Way Bill involves the following steps:

1. Login to e-Way Bill Portal: The user must log in to the e-Way Bill Portal using their valid credentials, such as their username and password.

2. Enter Transaction Details: The user must enter the transaction details of the consignment, such as the invoice number, date, the value of goods, tax rate, etc.

3. Generate e-Way Bill: After entering the transaction details, the user must generate the e-Way Bill by selecting the 'Generate e-Way Bill' option.

4. Update Transporter ID: If the user has engaged a transporter to transport the goods, they must update the transporter's ID and vehicle details.

5. Print and Carry the e-Way Bill: Once the e-Way Bill is generated, the user must print a copy of the same and carry it along with the goods being transported.

It is important to note that the e-Way Bill must be generated before the goods are transported. If the value of the consignment exceeds Rs. 50,000, the e-Way Bill is mandatory. The e-Way Bill can also be generated via SMS, mobile app, or using an offline tool.

Exemptions from e-Way Bill:

Under the GST regime, certain categories of goods and movements are exempted from the requirement of e-Way Bill. The exemptions from e-Way Bill include:

1. Transportation of goods having an aggregate value of less than Rs. 50,000, except in cases where the goods are being transported inter-state or are specified goods.

2. Goods specified in Annexure to Rule 138(14) of the CGST Rules, 2017 such as:

  • Live animals
  • Fruits, vegetables, and their products (unprocessed)
  • Food grains, pulses and flour of cereals, etc.
  • Curd, lassi, unbranded paneer, and unbranded natural honey
  • Kajal, bindi, sindoor, and glass bangles
  • Khadi fabrics, and
  • Books and printed materials, etc.

3. Goods transported by a non-motorized conveyance or through railways or air cargo.

4. Goods being transported from the port, airport, air cargo complex, or land customs station to an inland container depot (ICD) or container freight station (CFS) for clearance by Customs.

It is important to note that each state may have its own specific exemptions and the list of exempted goods may be subject to change. Therefore, it is advisable to refer to the latest rules and regulations issued by the respective state governments or the central government before transporting any goods.

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