GST E-Way Bill for Imports and Exports

Latest Updates

10 Jan 2024
Blocking the generation of E-Way Bill without e-Invoice/IRN has been withdrawn.
05 Jan 2024
Reporting of 4/6 digit HSN in e-Waybill from 1st February 2024.

Imports and exports play a crucial role in shaping the economic landscape of a nation, influencing foreign exchange earnings and trade dynamics. Amidst the movement of goods, the implementation of the Goods and Services Tax (GST) in India has brought about the necessity of Electronic Way (E-Way) Bills, especially in the context of import and export transactions. In this blog post, we will explore the nuances of E-Way Bill requirements for imports and exports under the GST Act, along with its applicability, stages, and key considerations.

What are Import and Export under GST:

According to the GST Act, import refers to bringing goods into India from a location outside the country, while export involves taking goods from India to a place beyond its borders. Import transactions are treated as inter-state supplies, subject to Integrated Goods and Services Tax (IGST), whereas exports are considered zero-rated supplies with no tax levied.

An E-way bill is required for the transportation of goods across state borders if their value exceeds Rs 50,000. Additionally, it is mandatory for all movements within a state, with certain relaxations provided.

Applicability of E-Way Bill on Import and Export Transactions:

For import transactions, the movement of goods is segmented into several stages:

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Goods Arrival (A) :

E-Way Bill generation is not required when goods reach the port or airport.

Customs Custody and Transportation to ICD/CFS (B) :

The transportation from the port or airport to an Inland Container Depot (ICD) or Container Freight Station (CFS) is exempt from E-Way Bill requirements.

Bill of Entry, Customs Clearance, and Transportation for Home Consumption (C) :

E-Way Bill is mandatory for the movement of goods from ICD/CFS to the place of business, such as a factory or warehouse, after customs duty payment.

Bonded Warehouse (D) :

Transportation from ICD to a bonded warehouse is exempt from E-Way Bill requirements. However, generating an E-Way Bill becomes necessary when clearing goods from the bonded warehouse to the importer's factory.

Stage	Description	Requirement
Stage 1 – Sea port or airport	This is the first stage of import. However, a consignment is said to be successfully imported into India when it reaches the sea port or airport.	There is no e-way bill requirement when the goods reach the sea port or airport.
Stage 2 – Inland Container Depot (ICD) or Customs Freight Station (CFS)	Now, the goods are moved to ICD or CFS for the purpose of clearance.	Such movement of goods to ICD or CFS also doesn’t require an e-way bill.
Stage 3 – Home consumption or bonded warehouse	The goods from ICD or CFS are either cleared for home consumption or it is kept in a bonded warehouse and then cleared for home consumption.	In case the goods from ICD or CFS are moved to bonded warehouse, such a movement of goods doesn’t require any e-way bill.However, as and when the goods are cleared for home consumption, the same requires the generation of an e-way bill.

For export transactions:

Place of Business to ICD/CFS (A):

E-Way Bill must be generated when goods are transported from the exporter's place of business or warehouse to an ICD/CFS.

ICD/CFS to Port (B):

Transportation from ICD/CFS to the port is exempt from E-Way Bill requirements.

Additionally, specific movements, such as transit cargo to or from Nepal/Bhutan and movements between customs ports/stations or between ICD/CFS and ports under customs bond or supervision, are exempt from E-Way Bill generation.

Stage	Description	Requirement
Stage 1 – Place of business or exporter’s warehouse	This is the first stage of export. Here, goods are moved from the place of business to the exporter’s warehouse.	Such movement of goods from the place of business to the exporter’s warehouse requires the e-way bill generation.
Stage 2 – Inland Container Depot (ICD) or Customs Freight Station (CFS)	Now, the goods are moved from the exporter’s warehouse to ICD or CFS. Notably, it may happen that instead to the exporter’s warehouse, the goods are moved to ICD or CFS from the place of business.	The movement of goods from the exporter’s warehouse to ICD or CFS doesn’t require the generation of an e-way bill. However, if the goods are moved directly to ICD or CFS (without movement of goods to the exporter’s warehouse) from the place of business. Then, such movement will require the generation of an e-way bill.
Stage 3 – Sea port or airport	Finally, the goods are moved from ICD or CFS to sea port or airport.	Such movement of goods from ICD or CFS to a sea port or airport doesn’t require an e-way bill.

Generating E-Way Bill for Imports and Exports:

The process of generating E-Way Bills for imports and exports involves using the same portal and following standard steps. Noteworthy considerations include:

For imports, calculate the E-Way Bill validity from the ICD to the importer's place of business.

For exports, generate the E-Way Bill when goods are moved from the warehouse/place of business to the port.

Particulars	Details to be mentioned in case of imports	Details to be mentioned in case of exports
Selection of transaction subtype	Import	Export
Document number as well as document type	Bill of Entry	Tax invoice meant for export of goods
Bill From	URP – Unregistered Person	Details of the exporter (i.e. name of exporter, GSTIN, etc.)
Dispatch From	PIN Code – ‘999999’ is to be entered; In the ‘state column’ select ‘other countries’.	Address of place of business of exporter or warehouse of exporter
Bill to	Details of importer (i.e. name of importer, GSTIN, etc.)	An unregistered person residing outside India (URP needs to be mentioned)
Ship to	Address of place of business of importer or warehouse of an importer	PIN Code – ‘999999’ is to be entered; In the ‘state column’ select ‘other countries’.
Transport details	Details of the transporter (i.e. transporter ID, vehicle details, etc.)	Details of the transporter (i.e. transporter ID, vehicle details, etc.)

E-Way Bill Exemption for High Sea Sales:

In the case of high sea sales, where the transaction occurs outside the boundaries of India, there is no requirement to generate an E-Way Bill. The government aims to ease the compliance burden for businesses engaged in foreign trade, emphasizing the importance of valid documents such as the shipping bill and bill of entry.

Conclusion:

The intricacies of E-Way Bill requirements for import and export transactions is vital for businesses engaged in international trade. By understanding the specific stages, exemptions, and considerations outlined in this guide, importers and exporters can streamline their compliance processes, ensuring a smoother and more efficient foreign trade experience. As the government continues its efforts to simplify procedures, staying informed and proactive is key for businesses to thrive in the dynamic landscape of global commerce.