What is E-Way Bill?
The E Way Bill (EWB) is an electronic bill which can be generated on an e-way bill portal. In February 2018 GST E-way billing method was introduced by Ministry of Road Transport and Highway for a trial period of 14 days. Within this trial period of E-way bills, 11581 transporters generated more than 28 lakhs GST E-way bills. From 15th April 2018, the e-way bills started rolling out in 4 different phases. The implementation of GST E-way bills has not only given transparency but also increased the efficiency and decreased the transportation time.
When an E-Way Bill Shall be Generated?
As per section 68 of the GST act, e-way bills shall be generated when the consignment or amount of goods which has to be moved from one place to another exceeds the threshold limit of 50,000 INR.
E-way bill shall be generated against the following things
- When there is a Supply, or
- When there is Return, or
- In a case when there is an Inward Supply of goods from an unregistered person.
In the above cases, so mentioned supply is the movement of goods for any consideration paid or if there is an exchange of goods or/and transfer from branch to another.
Who Shall Generate an E-way Bill?
There are different conditions when a person or company has to generate an e-way bill and they are:
1. The Person Registered Under GST
In a case when there is a movement of consignment by a registered person e-way bill can either be generated by the recipient or the registered person as the case may be.
When the registered person transfers the goods or consignment to a transporter for the movement then e-way bill shall be generated by the transporter.
2. The Person Not Registered Under GST
In the case when there is a movement of goods or consignment by an unregistered person then the e-way bill shall be generated by him only.
When there is a supply of good from an unregistered person to registered person then it will be assessed as the registered person is moving the goods and hence registered person is liable to generate the e-way bill.
How to Generate E-Way Bills?
Any taxpayer who wants to generate an e-way bill for the consignment must have an access first on the Government portal. For the detailed steps regarding the generation, you can visit this page.
E-way Bill Format
Below is the format of an e-way bill
E-way Bill Validity
The validity of an e-way bill is determined from the date of its generation.
E-way bill validity depends on two major things
- Kilometres or days whichever is earlier; and
- Cargo used for the movement (Normal Cargo or Over dimensional cargo)
|Conveyance Type||Kilometers (Distance)||E-Way Bill Validity|
|Normal cargo||Up to 100 kilometres||one day|
|Every additional 100 Kilometer||one additional day|
|Over dimensional cargo||Up to 20 kilometres||one day|
|Every additional 20 kilometers||one additional day|
The validity of an e-way bill can be extended either before 4 hours of its expiry time or after 4 hours after expiry. So, in total there are 8 hours with the holder of an e-way bill to extend the time period of expiry. If in case the holder or taxpayer do not extend its validity he will be penalized accordingly.
Penalties for Not Carrying the E-way Bill
If the transporter is moving without an e-way bill he must be penalized. There is two type of penalties which are imposed on the transporters they are as discussed.
In this case when there is a movement of consignment without an invoice and e-way bill the transporter shall be penalized either with 10,000 INR or amount of tax evaded, whichever is higher.
Detention & Seizure
When the taxpayer is failed to comply with the policies so mentioned the vehicle and goods can be detained and seized without any notice. However, both can be released if the owner wishes to pay the full tax or half the price of goods.
To save the taxpayer from being penalized and hampering the supply of goods, organization or transporters can use Masters India’s integrated e-way bill software. This software ensures that there will be a smooth movement of goods from one place to another.
Conditions When E-Way Bill is Not Required
There are some exempted goods which do not require an e-way bill. They are as mentioned
- LPG for the domestic purpose
- Kerosene distributed under the public distribution system.
- Transportation of postages by Department of Posts.
- Jewellery made by goldsmith or silversmith, precious stones or semi-precious stones
- Used personal products
- Livestock and plants
- Milk or pasteurized milk without any added sugar, buttermilk, curd, lassi.
- Salt, unprocessed tea and coffee beans
- Vegetable and fruits
- Educational Books and other related articles.
Check out the complete list of all exempted goods from e-way bill.
E-Way Bill FAQ’s
Q1. Whether a person can generate e-way bill without an invoice?
E-way bill can be generated by any taxpayer without an invoice if he has the following documents with them
Invoice of tax paid
Bill of supply or Entry
Q2. If a taxpayer gets the notification for cancellation of EWB or for any changes done by the transporter in Part-B?
Every taxpayer who has generated the e-way bill will get the notification for the change in the Part-B as well as if there is any rejection or cancellation done. This notification will either come on their registered mobile number or the email-id or both.
Q3. How many e-way bills are required for multiple consignments that are being transported on the same vehicle?
For every different consignment that are in the vehicle for the delivery must have different e-way bills. If the transporter or in-charge fails to show the EWB than the goods of that particular consignment can be ceased.
Q4. What are different modes of generation of E-way bill?
EWB can be generated by different means they are mentioned below
By GST Suvidha Provider (GSP)
Through ASP (Application Service Provider)
By e-way bill website: https://ewaybillgst.gov.in/login.aspx
Through site-to-site integration
Q5. Is it possible to generate bulk amount of e-way bills?
Yes, any taxpayer or transporter who activated the automated platform for generating invoice can generate the e-way bill in bulk. Through this, the transporter or taxpayer whichever the case may be will be able to refrain their mistakes as well the chances of duplicate entries will also decrease.