All about E-way Bill under GST
Basic of what is E-way Bill?
An Electronic Way (E-way) bill is for movement of goods to be generated on the GST eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 ( In Single or One Bill, Invoice, Delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.
Also, Eway bill can also be generated or cancelled through SMS or Android App and by site-to-site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of the GST search tool before using it.
A unique E-way Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.
Who will generate E-way Bill?
- Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.
- Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
- Registered Person – Eway bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.
The transporters need not generate the Eway bill (as Form EWB-01 or EWB-02) where all the consignments in the conveyance :
- Individually(single Document) is less than or equal to Rs 50,000 BUT
- In Aggregate (all documents put together) exceeds Rs 50,000
Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated.
Exceptions of E-way Bill (Where E-way bill is not required)
- Where the mode of transport is non-motor vehicle
- Goods transported under Customs supervision or under customs seal
- Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
- Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
- Empty Cargo containers are being transported
- Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
- Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.
Validity of E-way Bill:
| Type of conveyance | Distance | Validity of EWB |
| Other than Over dimensional cargo | Less Than 200 Kms | 1 Day |
| For every additional 200 Kms or part thereof | Additional 1 Day | |
| For Over dimensional cargo | Less Than 20 Kms | 1 Day |
| For every additional 20 Kms or part thereof | Additional 1 Day |
Note: Validity of Eway bill can be extended also. The generator of such Eway bill has to either eight hours before expiry or within eight hours after its expiry can extend Eway bill validity.
Details required to generate E-way Bill
- Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document
- Invoice/ Bill of Supply/ Challan related to the consignment of goods
- Transport by road – Transporter ID or Vehicle number
Penalty/Consequences of Non-Compliance of E-way Bill:
- As per section 122 of CGST Act 2017, failure to generate e-way bills may result in penalty of Rs.10000/-rupees or the amount of tax evaded, whichever is higher.
- In case of transportation of goods not specified in the e-way gill, they can be seized or detained as per section 129 of the CGST Act, 2017.
- When the goods are transported without the payment of applicable tax and without valid documents, the penalty is equal to 100% of taxable amount plus the applicable tax.. For exempted goods, the penalty is 2% of the total cargo value or Rs.25000/- whichever is less.
- If the goods are transported after payment of tax but without the valid documents, the penalty will be 50% of the total value of goods carried and for exempted goods the penalty is either 5% of the total value of goods or Rs.25000/- whichever is less.
- For minor mistakes in the e-way bill, the penalty is Rs.1000/-.but the taxpayer must have paid the applicable tax. Such penalty shall be paid in form GST DRC-07 for every applicable consignment.
- In case of generation of incorrect e-way bills, the taxpayer is liable to pay a penalty equal to 50% of the tax amount or the value of the goods whichever is higher, with a minimum of Rs.10000/-
- In case of transportation of goods not specified in the e-way gill, they can be seized or detained as per section 129 of the CGST Act, 2017.
BASIC FAQ’s:
- What is the responsibility and liability for the transporter in E-Way bill system?
Transporters carrying goods by road, air, rail, etc. also need to generate e Way Bill if the supplier has not generated an e Way bill due to any reason. Generate e way bill on basis of information shared by the suppliers/ consignors regarding the Invoice/challan.
If the transporter does not generate in the above circumstances when he is required to, as per section 122 of CGST Act 2017, failure to generate e-way bills may result in penalty of Rs. 10000/-rupees or the amount of tax evaded, whichever is higher. Further liable for confiscation of goods and seizure of vehicle.
- Whether E-way bill is required when the goods is billed within 10 km surroundings?
Goods that are moved inside a state need no e-way bill if the distance up to 10 km. The limit has now been increased to 50 km.
- How many days after raising an invoice that one should generate the E-way bill for delayed delivery?
The e-way bill is required at the time of delivery of goods only. So, if invoice is raised but goods are not delivered yet, then part-A can be generated on the e-way bill and Part-B details can be entered later on upon delivery. The validity of e-way bill begins when Part-B is entered.
Contact – anshul@karwaandassociates.com