What is the E-way bill under GST?

E-way bill under GST is an electronically generated bill which will be required for the movement of goods if the value of such goods exceed INR 50,000. This bill has to be generated from the GSTN portal in FORM GST INS-01 and it is mandatory for the movement of goods. In the case of multiple consignments, transporter needs to generate a consolidated E-way bill. When a person transfers goods from one vehicle to another, the transporter shall generate a new E-way bill. The generation and cancellation of this bill are also permitted through SMS.

E-way bill has to be generated when there is a movement of goods:

  • In relation to a ‘supply’.
  • In a case of return of goods.
  • If a registered person buys goods from an unregistered person.

Who originates these bills?

The duty to originate the E-way bill vary in every operation situations. If it is a business or the company it is a duty to fulfill ‘Part A’ and ‘Part B’ details connected with E-waybills. It’s mandatory to issue an E-waybill for transporting the goods worth above Rs. 50,000. The consignee or consignor is transporting goods alone. They need to originate an E-waybills for transferring goods. The transport system can be Airways, roadways or railways. The vehicles ID and Number needs to mention for transporting goods through vehicles. The transport system can be Airways, roadways or railways. The vehicles ID and Number needs to mention for transporting goods through vehicles.

Let’s explore the responsibility of people who originate E-waybill under different companies and situations:

Situations Who originate GST E-waybills Details filled in form EWB- 01
Registered Supplier will pass on goods to transporter. Transporter The supplier will fill Part-A and the transporter will fill Part-B.
Unregistered Supplier will pass on goods to the transporter. The goods will be received by a registered dealer. Transporter The unregistered supplier has to fill Part-A details and the transporter will fill Part-B details. The receiver will fill Part-A details.
Goods transported by the recipient in his vehicle Recipient Both Part-A and Part-B will be filled by the recipient.
Goods transported by the recipient in a hired vehicle or railways or airways Recipient Both Part-A and Part-B will be filled by the recipient.
Goods transported by an unregistered supplier in his own vehicle or hired one to the Registered recipient Recipient The recipient will file Part-A and Part- B will be filled by the transporter. It will be an option for an unregistered supplier can originate both E-way bills.
Supplier transport goods in his own vehicle. Supplier The supplier will fill both Part-A and Part -B details.
Supplier transport goods in a hired vehicle or through railways or airways. Supplier The supplier will fill both Part-A and Part-B details.

The people who originate GST-E way bills are the transporter, supplier and the recipient

Applicability of E-way bill

 

The E-way bill is postponed by the Center as of now, however, its application will start from October. The states are not in the favor of the bill nonetheless more research work is given by the center to the National Informatics Centre. The bill is also opposed by many authorities as it will increase the Operational Cost.

Contravening the decision of the Central Government to impose E-way for the movement of goods if the value of such goods exceeds INR 50,000,  the government of Uttar Pradesh has launched its own E-way bill for all taxable items coming from outside of the state and valuing over INR 5,000.

How to originate E-way bills?

In the above, we have seen the originators of GST E-way bills. The registered and unregistered supplier have to fill in Part -A details or Part -B details and in many situations both of the details. The transporter has to mandatory fill Part- B details. The people who originate GST-E way bills are the transporter, supplier and the recipient. In a different situation, they have to file different parts of bills.E-way will be generated on GST portal and after the GST registration. For origination of GST E-way bill you have to follow steps :

Step 1

Acquire about the GST E-way bill origination portal and enter the login detail.

E-way bill portal Login

E-way bill portal Login

Step 2

Click on the option Main menu page you will find Generate New from the E-Way bill.

Generate now

Step 3

Have a look on the screen you will see a new bill generation form. Fill all the required details for generating a GST invoice. Select inward if you are a receiver. Select outward if you are a supplier. Enter details of receiver and supplier with GSTIN in the place it is required. Check all the details for proceeding to the next step.

GST E-way bill

GST E-way bill

Step 4

The other half of the page will ask information about:

  • The approximate distance of transport. It connects to the validity period of the bill.
  • HSN code for goods needs to be mentioned.
  • Product Name and description mentioned should be similar to the Tax Invoice.
  • CGST is an intrastate transport and IGST is interstate transport. Rates need to be reachable as per CGST or IGST.

Step 5

Click the submit button to originate the bill. It will display the QR Code and bill number which has the details in a format. The hard copy of the bill will be given to the transporter. Transporter can carry out the bill for transferring the goods to the recipient.

GST E-way bill

Step 6

A combined bill mentions all the details on the transaction. It is simple to originate by giving E-way bill number in the needed field. Click on the submit button to originate combine bill.

GST E-way bill

A set format for E-way bills

eway-bill-format-1

Notes to keep in mind at the time of filling the form GST EWB-01:

  • A.8 Transport Document number means Airway Bill No./Good Receipt No./ Railway Bill No.
  • A.7 Reason for Transportation can be one of them-
  1. Live sale
  2. SIC or CKD
  3. Job work
  4. Supply
  5. Export or import
  6. Recipient not known
  7. Sale return
  8. For own use
  9. Exhibition or fair
  10. other use
  • A.6 In HSN code – A 4 digits code means the level of taxpayers annual turnover is above 5 crores. A 2 digits code means that the level of taxpayers annual turnover is up to 5 crores.
    .
  • A.2 At the time of mentioning the place of delivery mention the pin code of that particular region only.

The Validity of the E-way bill

The E-way bill once generated from the GSTN portal in FORM GST INS-01 for the movement of goods has a time limit for which it will be valid. The validity of an E-way is discussed as follows: 

  • If the distance is less than 100km- 1 Day
  • In case the distance is 100 km or more but less than 300km- 3 Days
  • Where the distance is 300 km or more but less than 500km- 5 Days
  • If the distance is 500 km or more but less than 1000km- 10 Days
  • When the distance is 1000 km or more- 15 Days

Goods on which E-way bill is not applicable

Some of the items of Mass Consumption are out of the ambit of the E-way bill and include:

  • Fruits and Vegetables
  • Jewelry
  • Food grains
  • Meat
  • Bread
  • Curd
  • Books

Some of the items, apart from the items of Mass Consumption, are also out of the ambit of the bill and include:

  • LPG
  • Kerosene
  • Currency
  • Live Bovine Animals
  • Fresh milk
  • Honey
  • Seeds
  • Cereals
  • Flour
  • Betel Leaves
  • Raw Silk
  • Khadi
  • Earthen Pot
  • Clay Lamps
  • Pooja Samagri
  • Hearing Aid
  • Human Hair
  • Frozen Semen
  • Condoms
  • Contraceptives

 

 

Special cases which do not require E-way bill:

  • When Goods transported by a nonmotorized conveyance.
  • Wherein the goods are being transported from the airport, port or customs stations to an inland container depot or a container freight station for clearance by customs.

In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance with GST Registration Online and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance. Call us with your requirements at +91-8750008585 or drop an e-mail at contact@legalraasta.com.Even you can download Legalraasta app in your android mobile phones.

Reference articles

HSN Code /SAC Code List and GST Rate

 GST -Goods and service tax 

GST Online verification