GST E-Way Bill: Everything You Need to Know

GST E-Way Bill, short for Electronic Way Bill, is a document implemented under the Goods and Service Tax system to track goods in transit. A taxable person with GST registration, engaged in the transportation of goods valued at over Rs. 50,000, is required to possess an E-way bill. This bill is generated on the GST Portal and serves as a documentation tool for monitoring the movement of goods.

Who is Responsible for Generating eWay Bill?

In the context of Goods and Services Tax regulations, the responsibility for generating an eWay Bill falls upon specific entities based on different scenarios.

1. GST Registered Persons

Persons with GST registration are obligated to generate an eWay Bill under the following circumstances related to the movement of goods:

• Goods movement involves a value exceeding Rs.50,000.
• The registered person has the option to generate an eWay Bill even if the value of the goods is less than Rs.50,000.

2. Unregistered Persons Making Supplies to Registered Persons

In cases where an unregistered person is supplying goods to a registered person, it is the responsibility of the registered receiver to ensure compliance with all GST e-Way Bill requirements.

3. Transporters of Goods

Transporters, whether using road, air, rail, or other means, are mandated to generate an eWay Bill under the condition that the supplier has not generated an eWay Bill.

Documents Required for eWay Bill Generation

To generate a GST E-Way Bill, specific documents are essential to ensure accurate and lawful transportation of goods. The required documents vary based on the mode of transport:

1. Invoice/ Bill of Supply/ Challan:

• Document relevant to the consignment of goods.
• Provides details of the transaction, including product description, quantity, and value.

2. Transport by Road:

• Transporter ID or the vehicle number.
• Crucial information for goods transported via road, allowing for easy identification.

3. Transport by Rail, Air, or Ship:

• Transporter ID.
• Transport document number.
• Date of transportation.
• Mandatory information for goods transported through rail, air, or ship, ensuring comprehensive tracking and documentation.

By ensuring the availability and accuracy of these documents, entities can successfully generate eWay Bills in compliance with the regulatory requirements, promoting transparency and efficiency in the transportation of goods.

E-Way Bill Format

The eWay bill comprises two integral parts, Part A and Part B. Part A primarily focuses on gathering essential details related to the consignment, specifically focusing on invoice particulars. The following information is required for successful completion of Part A:

1. GSTIN of the Recipient:

The Goods and Services Tax Identification Number of the recipient must be accurately provided.

2. Delivery Location Pin Code:

The Pin code of the destination where the goods are to be delivered should be clearly mentioned.

3. Invoice or Challan Details:

Submission of the invoice or challan number associated with the supplied goods is mandatory.

4. Consignment Value:

The overall value of the consignment being transported must be specified.

5. HSN Code for Goods:

For the goods in transit, the Harmonised System of Nomenclature code is required. If the turnover is up to Rs. 5 crores, the first two digits of the HSN code should be provided. For turnovers exceeding Rs. 5 crores, a four-digit HSN code is necessary.

6. Reason for Transportation:

A predefined reason for transportation must be selected, and the most relevant option chosen from the available categories.

7. Transport Document Number:

Indication of the transport document number, which could include the goods receipt number, railway receipt number, or airway bill number.

Process for Generating eWay Bill

An Electronic Way Bill is a digital document facilitating the movement of goods. It is generated on the GST E-Way Bill Portal, and its requirement is mandated by the GST Council for the transportation of goods exceeding Rs.50,000 in value (single invoice/bill/delivery challan) in a single vehicle. Mentioned below is the procedure for how to generate an eWay Bill:

1. Registration:

The supplier or transporter of goods must be registered with GST to obtain the necessary credentials for eWay Bill generation.

2. Access the GST E-Way Bill Portal:

Visit the GST E-Way Bill Portal, the designated platform for generating eWay Bills.

3. Login:

Use the required credentials to log in to the portal.

4. Enter Transaction Details:

Fill in the essential transaction details, including invoice or challan number, consignment value, HSN code, and reason for transportation.

5. Generate eWay Bill:

After entering the necessary details, choose the method of generating the eWay Bill. This can be done through LEDGERS Software, the GST E-Way Bill Portal directly, SMS, Android App, or Site-to-Site Integration.

6. Unique GST E-Way Bill Number (EBN):

Once the eWay Bill is successfully generated, the portal will assign a unique GST E-Way Bill Number (EBN) to the registered supplier, recipient, and the transporter.

7. Carry the GST E-Way Bill:

The registered supplier or transporter should carry the generated eWay Bill during the transportation of goods.

By following these steps, entities can comply with GST regulations and streamline the process of generating and carrying eWay Bills for the movement of goods.

Steps to Generate GST E-Way Bill on the e-Way Bill Portal

Generating an e-Way Bill on the GST e-Way Portal involves a systematic process. To initiate this, ensure you have both GST and transporter registrations. These are the steps for a successful e-Way Bill generation:

Step 1: Access the Portal

• Visit the e-Way Bill generation portal at https://ewaybill.nic.in/.
• Log in using your credentials to access the platform.

Step 2: Initiate e-Way Bill Creation

• From the e-Way Bill Main Menu, click on "Generate New" to start the creation of a new e-Way Bill.

Step 3: Fill in Basic Details

• A new form for e-Way Bill generation will appear. Enter necessary details similar to creating a GST invoice.
• Select "outward" for suppliers and "inward" for recipients.
• Provide details of the supplier and recipient, including their GSTINs.

Step 4: Complete Product Information

Fill in the second half of the form with the following details:

• Product name and description, similar to a tax invoice.
• HSN Code for the product (find it at https://www.e-waybill.org/hsn-code-finder/.
• Quantity and unit of the goods.
• Value of the products, along with the tax rate.
• Indicate applicable IGST, CGST, or SGST rates based on the type of transport.
• Specify the approximate distance of transport, Transporter Name, and Transporter ID.

Step 5: Generate E-Way Bill

• After completing all details, click "SUBMIT" to generate the GST E-Way Bill.
• The portal will display the GST E-Way Bill, containing the E-Way Bill number and a QR Code with digital format details.
• Provide a printed copy of the bill to the transporter for the duration of the trip.

Step 6: Consolidate E-Way Bill Generation

• Optionally, create a consolidated e-Way Bill with transaction details by entering the 'E-Way bill number' and clicking "SUBMIT."

Note: The e-Way Bill can be updated post-creation, allowing modifications to transporter details, consignment information, consignor and consignee GSTINs, provided the bill is still within its validity period.

GST E-Way Bill Validity

The validity of an E-way bill, as per amendments introduced through video notification no. 12/2018 Central tax dated 7th March 2018, is determined based on the type of conveyance and the distance to be covered. The following table outlines the updated validity period provisions for E-way bills:

It's important to note that the relevant date for determining the validity period is the date on which the E-way bill is generated. The period of validity is calculated from the time of E-way bill generation, with each day considered as expiring at midnight of the day immediately following the date of E-way bill generation. This approach ensures that the validity aligns with the nature of the conveyance and the distance the goods are expected to travel.

Cases When GST E-Way Bill is Exempted or Not Required

E-way bills are not required in specific scenarios, exempting the need for their generation. The following circumstances provide the instances when an E-way bill is not necessary:

1. Specific Goods:

• Liquefied petroleum gas for supply for household and non-domestic exempted category ustomers.
• Kerosene oil which is sold under Public Distribution System (PDS).
• Postal baggage transported by Department of Posts.
• Natural or cultured pearls, precious or even semi-precious stones, precious metals, metals with precious metal (Chapter 71).
• Jewellery, goldsmiths and silversmiths wares, as well as other articles (Chapter 71).
• Currency.
• Used personal and household effects.
• Coral, unworked (0508), and worked coral (9601).

2. Transport Specifics:

• Goods that are transported from customs port, airport, air cargo complex, or even land customs station to inland container depot or container freight station for customs clearance.
• Non-motorised conveyance for transporting goods.
• Alcoholic liquor which is for human consumption, petroleum crude or high-speed diesel, motor spirit (petrol) or natural gas, and aviation turbine fuel.
• No supply as per the provisions in Schedule III of Act.

3. Customs-related Scenarios:

• Goods which are transported under customs bond or customs supervision or customs seal.
• Transit cargo to or from Nepal or Bhutan.
• Goods exempt from tax under various notifications.

4. Government Operations:

• Transport by rail undertaken by the Central Government, State Government, or a local authority acting as a consignor.
• Goods movement by defence formation under the Ministry of defence as consignor or consignee.

5. Specific Situations:

• Transport of empty cargo containers.
• Goods transported for weighing purposes within a 20 km distance from the consignor's business, accompanied by a delivery challan.
• Transport of goods specified in the schedule appended to notification no. 2/2017-Central Tax (Rate) dated 28.06.2017, excluding de-oiled cake.

In these exempted cases, the generation of an E-way bill is not required, simplifying the process for certain types of goods and transportation scenarios.

Final Thoughts

The GST E-Way Bill system serves as a necessary tool for regulating the movement of goods, enhancing transparency, and ensuring tax compliance. The process, outlined on the official portal, involves meticulous documentation and adherence to specific rules, especially regarding distance-based validity. Notably, certain categories of goods and transportation scenarios are exempted from E-Way Bill requirements, simplifying procedures in those instances. Overall, the E-Way Bill mechanism, implemented from April 1, 2018, plays a vital role in the GST framework, reforming logistics, and fostering accountability in the transportation of goods across India. Understanding it is imperative for businesses and transporters to cross the complexities of the taxation sector effectively.