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-
| Part A | It comprises details of GSTIN & Address of Supplier & recipient, place of delivery, description of goods supplied (invoice no., date etc.), value of goods, HSN code etc. This part to be generated by registered person causing movement of goods. |
| Part B | This part comprises transport details (transporter document no., vehicle details etc.). The details regarding this part to be furnished by person who is transporting the goods. |
‘’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 –
| Bill from | Details of A |
| Bill To | Details of B |
| Dispatch from | Location of place of business or additional place of business of A |
| Ship To | Address of C |
Case2: When E way bill generated by B, then Part A of E-way will be as –
| Bill from | Details of B |
| Bill to | Details of C |
| Dispatch from | Location of place of business or additional place of business of A |
| Ship to | Address of C |
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
| Type of Conveyance | Distance | Validity |
| Other than Over Dimensional Cargo | Less than 200 Kms | 1 day |
| Every additional 200 Kms or part thereof | Additional 1 day | |
| For Over Dimensional Cargo | Less than 20 Kms | 1 day |
| Every additional 20 Kms or part thereof | Additional 1 day |
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.
Author Bio
