E-way bill : Definition, Benefits, Requirements & Validity
What is e-way bill?
E-way bill is basically a compliance mechanism, wherein by way of digital interface, the person causing the movement of goods, uploads the relevant information prior to the commencement of movement of goods. This means that the person who is affecting the movement of goods is required to generate the e-way bill before the movement of goods begins.
What are the benefits of e-way bill?
There are various benefits of e-way bill. Some of them are:-
- There is a hassle free movement of goods throughout the country.
- It acts as an effective tool for tracking the movement of goods.
- It helps to control tax evasion in the country.
- It is a physical interface ti pave way for digital interface resulting in elimination of state boundary check-posts.
When is e-way bill required to be issued?
As per Rule 138, every registered person who causes the movement of goods of consignment value exceeding ?50000 is required to generate an e-way bill. The e-way bill is applicable to both interstate (between different state(s)) and intrastate (within the same state) supply of goods. In case of intrastate. In case of intrastate supplies, the law relating to e-way bill for the respective state will apply. However, the provisions of CGST Act, 2017 read with rule 138 will apply in case of interstate movement of goods.
What are the details required to be furnished in e-way bill?
E-way bill has been bifurcated into 2 parts as per form GST EWB-01. According, following details are required to be furnished:-
- GSTIN of the supplier
- GSTIN of the recipient
- Place of dispatch (Pin code)
- Place of delivery (Pin code)
- Document number
- Document date
- Value of goods
- HSN Code
- Reason for transportation (to be selected from the table given in the portal
- Vehicle Number for Road
- Transport Document Number/ Defence Vehicle Number/ Temporary Vehicle Registration Number/ Nepal or Bhutan Vehicle Registration Number.
The details of Part A are required to be furnished by the supplier/recipient and the details of Part B are to be furnished by the transporter. If the supplier/recipient fails to furnish the details of Part A then the same may be furnished by the transporter.
Whether e-way bill may be generated if the consignment value is less than ?50,000?
Yes, the registered person or the transporter, as the case may be, may generate e-way bill voluntarily, even if the value of consignment is less than ?50,000.
How to calculate consignment value of supply for the purpose of e-way bill generation?
The consignment value of the goods shall be the transaction value declared in the invoice, bill of supply or delivery challan, as the case may be, issued in respect of the said consignment, and should also include CGST, SGST, UTGST, IGST or cess, if any,in the document and shall exclude the value of exempt supply of goods, where the invoice is issued in respect of both exempt and taxable supply of goods.
What is the validity of e-way bill?
An e-way bill shall be valid for the period as mentioned below:-
- For cargos other than over-dimensional cargo: 1 day for distance upto 100 km and for every 100 kmor part thereof, thereafter, the validity period will be 1 additional day.
- For over-dimensional cargo: 1 day for distance upto 20 km and for every 20 km or part thereof, thereafter, the validity period will be 1 additional day.
Example: Mr. X generates an e-way bill for transportation of goods from Delhi to Gujarat (distance 750 km. approximately). In this case the e-way bill will be valid for 1 day upto 100 km of distance and it will increase by 1 days each, when distance is increased by 100 km or part thereof. So, in the given case, e-way bill is valid upto 8 days. (For 700 kms- 7 days, and for another 50 km- 1 day).
Can an e-way bill once generated be cancelled?
Where an e-way bill has been generated, however, goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, within 24 hours of e-way bill generation.
Can a consolidated e-way bill be generated?
Generally, e-way bill is generated in respect of individual invoices. A person cannot issue a single e-way bill for multiple invoices. However, consolidated e-way bill can be issuedwhere multiple consignments are intended to be transported in one conveyance (in form GST EWB-02). In the consolidated e-way bill, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment. In simple words, the consolidated e-way bill is like a trip-sheet and it contains details of different e-way bills, each having different validity periods. Hence, consolidated e-way bill does not have any independent validity period.
What are the consequences of non-compliance with e-way bill rules?
If any person fails to comply with the provisions of the Act or the rules made thereunder, the following consequences shall follow:-
- As per section 122 of the CGST Act, 2017, a taxable person, who transports any taxable goods, with the cover of specified documents (e-way bill is one of those documents) shall be liable to a penalty of ?10,000 or tax sought to be evaded, whichever is greater.
- As per section 129 of the CGST Act, 2017, where any person transports any goods or stores any goods while they are in transit, in contravention of the provisions of the Act or the rules made thereunder, all such goods or conveyance used as a means of transport for carrying the said goods and the documents relating to such goods and conveyance shall be liable to detention or seizure.