Decoding Intricacies of E-way Bill

Introduction

E Way bill is a document generated electronically from portal evidencing movement of goods. The document is generated after uploading relevant details, by person causing movement of goods, on portal.

There are 3 parties involved in every transaction of goods under normal circumstances viz Supplier, recipient and Transporter. E way bill may be generated by any of the parties involved in the transaction. However, only registered person may generate e way bill. Exception is there for transporter (An unregistered transporter may generate e way bill after enrolling himself on E way bill portal to get 15-digit unique Transporter ID).

When Required?

E-way is required to be generated when there is movement of goods of Consignment value (incl. GST value) exceeding Rs. 50,000*. However, there may be situations when e way is required to be generated in spite of Consignment value less than Rs. 50,000 :-

• Inter-State Transport of Handicraft goods by a person exempted from GST registration
• Inter-State movement of Goods by the Principal to the Job-worker

*Certain states have set their own limits like for Delhi it is Rs. 1,00,000 instead of Rs. 50,000.

E-way bill Form

E-way bill form is divided into 2 parts-

‘’Bill To Ship To’’ model

A is the supplier located in Delhi

B is the buyer located in Kolkata

C is the recipient located in Mumbai.

B the buyer ordered goods from A and instruct him to supply the goods to C. So, 2 supplies are involved here- A→B & B→ C. E way bill may be generated either by A (on basis of Invoice raised by A on B) or by B (on basis of Invoice raised by B on C).

Note: It is to be noted that only one E- way bill needs to be generated in this scenario (Press release dated 23.04.2018)

Case1: When E way bill generated by A, then Part A of E-way will be as –

Case2: When E way bill generated by B, then Part A of E-way will be as –

Cases when E-way bill not mandatory:

• When the goods are being transported by a non-motorised conveyance,
• where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by customs,
• Goods transported under Customs supervision or under customs seal
• Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
• Transport of certain specified goods
• Where the goods being transported are transit cargo from or to Nepal or Bhutan
• Any movement of goods caused by defence formation under Ministry of Defence as a consignor or consignee

Validity of E-way Bill

Conclusion

E-way bill is proving to be a milestone in GST Act. It is beneficial for both Tax Authorities and Businesses. Tax Authorities are able to keep a record of all transactions through E way records and it also helps in matching with Invoices.

Businesses are benefitted by way of unhindered movement of goods as check posts are abolished. As per E way bill portal data, a total of 500 crores e way bills have been generated in 6 years and 3 months.