Note on E-way
bill under GST Regime
E-way bill is
a pre-intimation on the common portal of the department regarding the movement
of goods of consignment where the amount exceeds fifty thousand Rupees in
relation to supply or for the reasons other than supply, or due to the inward
supply from an unregistered person. Here it is pertinent to point out that no e-way
bill is required to be generated where the goods being transported are
specified in Annexure [See Rule 138 (14)], or where the goods are being
transported by a non-motorised conveyance, or where the goods are being
transported from the port, airport, air cargo complex and land customs station
to an inland container depot or a container freight station for clearance by
Customs, and in respect of movement of goods within such areas as are notified
under clause (d) of Sub-rule (14) of
Rule 138 of the Goods and Services Tax Rules of the concerned State
In terms of
section 68 of Goods and Services Act and Rule 138 of The Goods and Services Tax
Acts mandates that the Govt. may require the person incharge of the conveyance
carrying any consignment of goods, exceeding 50,000/- is under an obligation to
generate e-way bill.
Now the question
arises, who can generate the e-way bill.
Every
registered person who causes movement of goods of consignment value exceeding
fifty thousand rupees in relation to supply; or reasons other than supply; or
inward supply from unregistered person shall generate e-way bill. It means, the
consignor or consignee, as a registered person or a transporter of the goods
can generate the e-way bill. The unregistered transporter can enroll on the
common portal and generate the e-way bill for movement of goods for his
clients. Any person can also enroll and generate the e-way bill for movement of
goods for his/her own use.
What is the validity
period for e-way bill?
Validity of
the e-way bill or consolidated e-way bill depends upon the distance the goods
have to be transported. The validity is one day upto 100 km and for every 100
km or part thereafter it is one additional day.
How validity
is calculated?
The validity
period of the EWB is calculated based on the ‘approx. distance’ entered while generating
the EWB. For every 100kms one day is a validity period for EWB as per rule and
for part of 100 KM one more day is added. For ex. If approx. distance is 410KMs
then validity period is 4+1 days.
What has to
be done if validity of the e-way bill expires?
If validity
of the e-way bill expires, the goods are not supposed to be moved. However,
under circumstance of ‘exceptional nature’, the generator of the e-way bill can
generate another e-way bill, by entering the e-way bill number and part-B. Now,
the system generates the new e-way bill with part-A information of previous
e-way bill and new Part-B information.
Constitution
of E-way bill?
E-way bill is
divided into two parts i.e. part-A and part-B
Part-A is a
temporary number generated after entering all the details in PART-A. This can
be shared or used by transporter or yourself later to enter the PART-B and
generate the E-way Bill. This will be useful, when you have prepared invoice
relating to your business transaction, but don’t have the transportation
details. You can enter invoice details and keep it ready for transportation,
once the transportation is ready.
If one will
not enter the vehicle number for transportation by road or transport document
number in other cases, the system will show you the PART-A slip. It indicates
that still you have not completed the e-way bill generation process. Once you
enter the part-B details for this unique number, e-way bill be generated.
How to generate
e-way bill?
Part-A is
entry made by user to temporarily store the document details on the e-way bill
system. Once the goods are ready for movement from the business premises, the
user can enter the Part-B or vehicle details and generate the e-way bill for
movement of goods. Hence, Part-B details convert the Part-A into e-way bill.
Documents
required to be carried alongwith the goods?
The person in
charge of a conveyance shall carry the tax invoice or bill of supply or
delivery challan, bill of entry as the case may be; and a copy of the e-way
bill or the e-way bill number generated from the common portal.
How one can
enter part-A details and generate e-way bill later by entering part-B?
The taxpayer
can enter Part-A details and generate the Part-A slip. Sometimes, the taxpayer
wants to move the goods himself but wants to update the Part-B later as vehicle
number is not available at that point of time. E-way bill expects the user to
enter transporter ID or vehicle number. If he wants to move the goods himself,
he can enter his GSTIN as transporter Id and generate Part-A. This indicates to
the system that he is a transporter and is going to enter Part-B later.
E-way bill in
case of multiple invoices belonging to same consignor and consignee?
If multiple
invoices are issued by the supplier to recipient, that is, for movement of
goods of more than one invoice of same consignor and consignee, multiple EWBs
have to be generated. That is, for each invoice, one EWB has to be generated,
irrespective of same or different consignors or consignees are involved.
Multiple invoices cannot be clubbed to generate one EWB. How ever after
generating all these EWBs, one Consolidated EWB can be prepared for transportation
purpose, if they are going in one vehicle
If consignee
refuses to take goods or rejects the goods, then how to deal with that
situation?
There is a
chance that consignee or recipient may reject to take the delivery of
consignment due to various reasons. Under such circumstance, the transporter
can get one more e-way bill generated with the help of supplier or recipient by
indicating supply as ‘Sales Return’ and with relevant document details and
return the goods to supplier as per his agreement with him.
How to enter
invoice having different states for “Bill to” and “Ship to” places and what
will be the tax rates?
If the
addresses involved in 'Bill to' and 'Ship to' in a invoice/bill belongs to one
legal name/taxpayer as per GSTIN within the state, then one e-way bill has to
be generated. That is, if the 'Bill to' is principal place of business and
'Ship to' is additional place of business of the GSTIN or vice versa in a
invoice/bill, then one e-way bill is sufficient for the movement of goods.
If the
addresses involved in 'Bill to' and 'Ship to' in a invoice/bill belongs to
different legal names/taxpayers, then two e-way bills have to be generated. One
e-way bill for first invoice, second e-way bill is from 'Bill to' party to
'Ship to' party based on the invoice/bill of the 'Bill to' party. This is
required to complete the cycle of transactions and taxes will change for
inter-state transactions.
For example,
A has issued invoice to B as 'Bill to' with C as 'Ship to'. Legally, both B and
C are different taxpayers. Now, A will generate one e-way bill and B will issue
invoice and generate one more e-way bill. As goods are moving from A to C
directly, the transporter will produce both the invoices and e-way bills to
show the shortcut movement of goods.
How to
generate e-way bill when one invoice of bulk quantity is being moved in
multiple vehicles?
Where the
goods are being transported in a semi knocked down or completely knocked down
condition the EWB shall be generated for each of such vehicles based on the
delivery challans issued for that portion of the consignment and;
a) the
supplier shall issue the complete invoice before dispatch of the first
consignment;
b) the
supplier shall issue a delivery challan for each of the subsequent
consignments, giving reference of the invoice;
c) each consignment
shall be accompanied by copies of the corresponding delivery challan along with
a duly certified copy of the invoice; and
d) the
original copy of the invoice shall be sent along with the last consignment
e) Please
note that multiple EWBs have to generate under this circumstance. That is, the
EWB has to be generated for each consignment based on the delivery challan
details along with the corresponding vehicle number.
How to deal
with the situation if the vehicle breaks down?
If the
vehicle breaks down when the goods are being carried with EWB, then the
transporter can cause to repair the vehicle and continue the journey. If he is
going to change the vehicle, then he has to enter the new vehicle details for that
EWB on the web-site using ‘Update vehicle number’ option and continue the
journey with new vehicle.
If in any
case, e-way bill is changed then how to deal with this situation?
The e-way
bill for transportation of goods always should have the vehicle number that is
physically carrying the goods. There may be requirement to change the vehicle
number after generating the e-way bill or after commencement of movement of
goods due to transhipment or due to breakdown of vehicle. In such cases, the
transporter or generator of the e-way bill can update the changed vehicle
number.
One can
transport the goods with e-way bill without vehicle details in it?
No. One needs
to transport the goods with a e-way bill specifying the vehicle number, which
is a carrying the goods. However, where the goods are transported for a
distance of less than 10 KM within the State from the place of business of
consignor to the place of transporter for further transportation, then the
vehicle number is a not mandatory.
If both
consignor and consignee is not having GSTIN?
If the
consigner or consignee is unregistered taxpayer and not having GSTIN, then user
has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.
Whether
part-B or vehicle number can be updated for an e-way bill?
Yes, part-B
can be updated (vehicle details) as many times has he wants for movement of
goods to its destination. Subject to the condition, the updating should be done
within the validity period.
Is it possible
to delete or cancel the e-way bill?
The e-way
bill once generated cannot be deleted. However, it can be cancelled by the
generator within 24 hours of generation. If it has been verified by any proper
officer, then it cannot be cancelled. Further, e-way bill can be cancelled if
either goods are not transported or are not transported as per the details
furnished in the e-way bill.
Who can
reject e-way bill?
The person
who causes transport of goods shall generate the e-way bill specifying the
details of other person as a recipient of goods. There is a provision in the
common portal for the other party to see the e-way bill generated against his/her
GSTIN. As the other party, one can communicate the acceptance or rejection of
such consignment specified in the e-way bill. If the acceptance or rejection is
not communicated within 72 hours from the time of generation of e-way Bill, it
is deemed that he has accepted the details.
Modes of e-way
bill generation?
The e-way
bill can be generated by the registered person in any of the following methods;-
·
Using Web based system
·
Using SMS based facility
·
Using Android App
·
Bulk generation facility
·
Using Site-to-Site integration
·
Using GSP ( Goods and Services Tax
Suvidha Provider)
SMS facility
to generate e-way bill?
The taxpayer
has to register the mobile numbers through which he wants to generate the e-way
bill on the e-way bill system. Please see the user manual for SMS based e-way
bill generation, on the portal
Android App
to generate e-way bill?
The taxpayer
has to register the EMEI numbers of the mobiles through which he wants to
generate the e-way bill on the e-way bill system. Please see the user manual
for Mobile App based e-way bill generation, on the portal.
Procedure to
download mobile App?
The mobile
app is available only for the taxpayers and enrolled transporters. The main
user has to login and select the ‘for mobile app’ under registration menu. The
system requests to select the user/sub-user and enter the IMEI number of the
user. Once it is entered, the concerned user gets the link in his registered
mobile to download the app through SMS. Now, the user has to download the app
by clicking that link and enable to it get it installed on the mobile.
Penalties for
violation of E-way bills?
Regarding penalties,
the same is governed by Section 129 of the GST Act, as if, there is a bill GR
then penalty leviable for any violation is equal to applicable tax and penalty
to 100% of the tax payable on such goods and in case owner of the goods does
not come forward, means thereby the E-way bill is not generated then penalty
leviable is equal to 50% of the value of the goods reduced by the tax amount
paid thereon alongwith applicable tax.
Conclusion:
In fact E-way
bill proves to be very useful for the honest tax payers as it is a
pre-intimation to the department so there is no harassment to the honest dealer
if the tax payer will generate the E-way bill for movement of goods and as per
my opinion it proves to be very efficient system in comparison to the system prevalent
under the Punjab Vat Act, 2005 there is no doubt whenever any new concept came
into existence then one has to face hurdles but if we adopt the honest policy
of tax paying then the honest tax payer will be highly beneficiary for the
same.
