In the GST regime, whenever goods are being moved under certain conditions from one place to another, an e way bill is to be generated by the e way bill system.
Let us now discuss its various aspects under GST.
Table of Content
- What E Way Bill?
- E Way Bill Registration
- Who Has To Generate?
- Criteria To Generate
- How To Generate E Way Bill?
- How To Cancel E Way Bill?
- Penalties Under E Way Bill
- Frequently Asked Questions
What is E Way Bill?
E Way Bill, also known as Electronic Way Bill, is a bill generated electronically under the e way bill system of GST.
If you are a registered person under GST and you want to transport goods having value more than Rs. 50,000 from one place to another, then you have to generate the bill mandatorily along with a regular GST invoice.
It is to be generated on the e way bill portal (www.ewaybillgst.gov.in) or by an SMS.
When you create the bill, a number (EBN) is generated on the portal, and this number is available with all the three parties, the supplier, the receiver, and the transporter.
E Way Bill Registration
The e way bill registration is to be done by all the registered suppliers, receivers, and transporters under GST. If the transporter is unregistered then the transporter has to apply for a Transporter ID on the common portal.
Who Has To Generate?
Whenever goods are supplied from one place to another, mainly three parties are involved. Firstly the supplier, secondly the transporter, and the third is the receiver.
The supplier/receiver and the transporter can be either registered or unregistered under the GST.
In the case of supply from or to a registered person, if the amount of goods is above Rs.50,000, then it is mandatory to generate the e way bill. Either the supplier or the transporter can generate it.
In the case of supply from an unregistered person then the receiver which is registered has to generate the e way and complete all the necessary documentation.
In the case of unregistered transporters, then the transporter has to apply for a Transporter ID through which e way bill can be generated.
Thus if you are transporting goods above Rs.50,000, then you need to generate the bill based on the above criteria.
Criteria To Generate
There is specific criteria defined under the GST regime which explain when to and when not to generate the e way bill. Now let us look into both the conditions.
The bill is mandatory to be generated under the following conditions –
- Supply of goods from or to a registered person having a value above Rs.50,000 individually.
- Supply of goods from or to a registered person having a value above Rs.50,000 combined all together.
- Inter-branch (from one branch to another) supply of goods having a value above Rs.50,000.
- Receiving goods having a value above Rs.50,000 from an unregistered person.
- Return of goods having a value above Rs.50,000 due to any reason.
- Exchange of goods having a value above Rs.50,000 in place of money.
The bill is not mandatory to be generated under the following conditions –
- The goods are being transported by a vehicle but it is non-motorized.
- The goods are transported for custom clearance.
- Goods transported by the Defence Ministry under certain conditions whether as a seller or buyer.
- Goods transported by rail where the Central or State Government is the seller of goods.
- The vehicle carries only the goods container but it is empty.
- Transportation of certain goods that are exempted under the system.
- The goods transported have a value of less than Rs.50,000.
How To Generate E Way Bill?
The bill can be generated easily on the common portal (www.ewaybillgst.gov.in) after a successful registration.
You can generate the bill under the generate new option on the common portal. You need to fill the required details in the form and then submit it to generate the bill.
Below are the details which need to mentioned while generating the bill –
- All the details related to the invoice of the goods being supplied.
- Vehicle number or transporter ID if transporting by road.
- Transporter ID, transport document date, and number in case of transport by rail, air or sea.
The e way bill validity depends on the total distance of transportation of goods from one place to another.
If the distance of transportation is less than 100 km, then the validity of the bill is one day. The validity is counted from the date and time at which the bill is generated.
In case the distance is greater than 100 km, then an additional one day will be added to the validity for every 100 km increase in distance.
The validity of the bill can be extended in case of certain genuine reasons. The person who generated the bill can extend the validity by applying on the portal within four hours before or after the expiry of the bill.
How To Cancel E Way Bill?
The bill can be cancelled under the following two conditions –
- Goods are not transported due to any valid reason.
- Goods are transported but are different as declared in the bill.
In both cases, the person who generated the bill will have to apply for its cancellation on the portal subsequently within 24 hours of the creation of the bill.
Penalties Under E Way Bill
If the goods are transported without the generation of bill, then the concerned person or transporter is liable to certain penalties and legal proceeding as mentioned in the GST regime.
A registered person found to be supplying goods above the value of Rs.50,000 without the bill; then he will be liable to a penalty of Rs.10,000 or the tax amount, whichever is higher.
If the transporter is found to be transporting the goods without the bill; then his/her vehicle can be ceased and would be released only after the payment of penalties.
Frequently Asked Questions
Now let us discuss some frequently asked questions.
It can be generated on the common registration portal.
It is mandatory whenever goods having value more than Rs.50,000 are transported from one place to another.
All the registered persons (supplier, receiver or transporter) or the unregistered transporter can generate the bill from the portal.
Yes, vehicle number is mandatory on the bill if the mode of transport is by road. The vehicle number can only be updated by the transporter or the person who generated the bill.
Unregistered transporters have to generate a unique transported ID on the common portal. By using that ID, they can generate the bill.
When a transporter is carrying multiple consignments in a single-vehicle each having its own bill, then he/she has to carry a consolidated bill that carries information of all the bills.
A consolidated bill can be generated by the transporter only.
It cannot be deleted. It can only be cancelled within 24 hours of creation if goods are not transported or the goods transported are different as declared in the bill.
The validity of the bill is one day for a distance less than 100 km and an additional day for every additional 100 km.
It can be generated on the common portal, or by an SMS or through the android application.
A transporter ID is a 15 digit number allotted to an unregistered transporter using which he/she can generate the bill.
Yes, the goods can be transported in multiple vehicles. The transporter has to update the vehicle number every time there is a change of vehicle.
It is only required when delivery is done by a motorized vehicle or by rail, air or ship.
Yes, it is required in case the goods are transported for job work, and their value exceeds Rs.50,000.
It is only required when the goods are transported to or from the place of business, to an inland container depot/custom freight station.