A Complete Guide of GST E-Way Bill
What is E-Way Bill?
E-way bill is an abstract of electronic bill. It is electronically generated on the GST portal for the movement of goods worth more than INR 50,000 within a state and interstate. Under GST, the process and procedural aspects of the movement of goods are prescribed in E-way bill rules. This E-WA bill need to be generated before the commencement of goods and the validity of E-way is less than 100 km- 1 day. It can be extended by the commissioner for certain categories of goods. When e-way is generated a unique –e-way number provided to the transporter, suppliers and recipient. It is a replacement of the e-way-bill, which was a physical document and existed during the VAT regime for the movement of the goods.
Who should generate E-way Bill?
Let’s try to understand who needs to generate the e-way bill:
A GST Registered Person: When a GST registered person causes the movements of goods/ consignment, either in the capacity of a consignee or co-signer in his/her vehicle or hired vehicle or railway or by air or by ship. Then the registered person should generate the e-way bill while transporting goods from one place to another place.
When a person causes the movement of goods and hand these over to the transporter for the transportation by road, then the e-way bill is not generated, then it is a transporter who needs to generate the bill. In form B, the GST registered person has to furnish all the documents. After which, the transporter will generate the e-way bill by a registered person through Part A of Form EQB 01.
Unregistered Person: When an unregistered GST person causes a movement of goods through his/her convince or hired transporter, then e-way will not be generated by the transporter and unregistered person.
In the event when unregistered person transports the goods to the GST registered person is known to an unregistered person at the time of the start of the goods movement, then it will be considered that the registered person is moving the consignment. In this case, a registered person has to complete all the formalities.
Documents, Inspection, and Verification of the E-way Bill:
The transporter or the person in charge of convenience should carry the following documents:
• The invoice/bill/delivery challan and the physical copy of the e-way bill or e-way identification number.
• At the time of verification, the inspector can inspect any vehicle to verify the e-way bill. The physical verification of the vehicle can be carried out by the officer after obtaining necessary approval from the officer on his behalf. If physical verification of a vehicle is done in one state it will not be verified on any other state.
• After every inspection, the officer needs to record the details of the vehicle and e-way bill within 03 minutes. If a vehicle is detained for more than 30 minutes, the transporter can complain by uploading the details on form GST EWB 04.
When to extend the validity of the E-way bill?
Both you and your transporter can extend the e-way bill validity if the consignment number has not reached the destination within the validity period. Due to the following reasons.
• Natural disaster.
• Trans-shipment delay.
• Law and order issue on the transit.
• Delay due to the vehicle breakdown.
You and your transporter only extend the e-way bill validity within 8 hours after the expiration of time.
Current GST E-way Bill Regime: Today, many state governments have implemented their own system to track the movement of goods. For instance, some government has declared the registered dealer to declare the details of the goods on the basis of consignment number or designated notified goods when they are transported. The documents like permit form, wall bill have to generate. In this technology-based world, many governments make procedure digital. Like -esugam, Karnataka GST registered person can upload the documents and can obtain a unique reference number. And this number is shared with the transporter and he simply quotes the number to the officer at the time of verification.
Generation of E-way bill Under GST:
• There is A trader who wants to hand the goods to B trader.
• A trader furnishes the details of the stock in Form A and transport details in Form B.
• Based on details furnished in Part A of form GST EW0B-1 is generated the e-way bill.
• After generating the e-way bill, a registered person get a unique identification number.
• At the time of verification, the transporter can quote a unique identification number to the officer.
In the event, if your Identification number is canceled in the e-way bill system, but it is active in common GST portal. All you need is to do first go to the taxpayer search option on the home page of the e-way bill portal. You must enter your GSTIN and the system will show corresponding GSTIN details. If the status of the GSTIN is active you can log in and generate the e-way bill.
When should E-way bill be issued?
Technically, the e-way bill should be generated before the commencement of the goods above the value of Rs. 50,000. The movement of goods will either about to supply/ reason other than supply/ inward supply from an unregistered person.
What are the criteria for “value of consignment of goods”?
• You can only generate e-way bill if the value of goods is more than Rs. 50,000.
• If the vehicle is carrying multiple goods for multiple invoices whose combined value exceed Rs. 50,000.
At Unilex consultants, we think that e-way bill is enough to go along with the goods during transportation. With the e-way bill, a transporter can transport the goods hassle-free. If you are unable to issue an e-way bill, or e-way bill registration feel free to contact us. We are one of the leading legal advisors who help you with any issue related to the GST.