Below article explains the concept of E-way bill and various provision related to E Way bill
1. Why E way bill is required?
2. What is an E Way Bill?
3. When should E-Way bill be generated?
4. What If supply is Intrastate?
5. Who has to generate E-Way Bill?
6. Does E-Way Bill to be generated even if Value less than 50000?
7. How many E-Way bill to be issued in case of Bill To Ship To model?
8. What details to be furnished in E-Way bill?
9. What is Form GST EWB-02?
10. What is Validity of E-Way Bill?
11. What E-Way bill provision in case of Export and Import of goods?
12. What is Vahan System?
13. Why E-way bill system needs integration with VAHAN System?
14. What is step by step Guide to Generate EWay Bill (EWB-01) online?
15. How the e-Way Bill looks like when generated online?
16. Some special points related to E Way Bill
Why E way bill is required?
It helps to identify the movement of goods at every state and thus helps prevent tax evasion (If bill is not accounted by either by seller or buyer).
What is an E Way Bill? (From 1.04.2018)
E WAY Bill is an Electronic Way Bill for the movement of Goods to be generated on the E Way Bill Portal.
When should E-Way bill be generated ?
It is to be generated when it satisfied 3 conditions-
1) Movement of goods in a vehicle/ conveyance.
2) Only in case of Interstate Movement of goods
3) Where invoice value exceeds Rs. 50,000 (either each Invoice or in aggregate of all invoices in a such vehicle/conveyance)
The E-Way Bill is to be generated
a) In relation to supply
b) In relation to return
c) Purchase from unregistered person
What If supply is Intrastate?
State will notify intrastate limits for generation of E-Way Bill.
E-way bill has also been made applicable in phased manner for intra-state movement of goods by June 3, 2018 and has been notified in each state.
Who has to generate E-Way Bill?
Illustrative cases to understand – who can generate E-way bill?
|Case 1 :-
Seller and Buyer both are registered
|Then E way bill should be generated by Seller|
Seller (Unregistered) and Buyer registered
|Then E way bill should be generated by Buyer|
Seller and Buyer both are unregistered
|Then E way bill should be generated by Transporter|
Note:– Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated.
Does E-Way Bill to be generated even if Value less than 50000?
The E-Way bill is to be generated even if value is less than 50000 in the following two cases:
1. Inter-State transfer of goods by Principal to Job worker.
2. Inter-State transfer of handicraft goods by a person exempted from obtaining registration.
How many E-Way bill to be issued in case of Bill To Ship To model?
In case of Bill To Ship To Model only One E-Way Bill to be generated Either by A (Seller) Or by B (Buyer)
B (Buyer) directs A (Seller) to send goods to C (Original Recipient)
Two supplies are involved in the above transaction
B to take ITC on invoice issued by A
C to take ITC on invoice issued issued by B.
What details to be furnished in E-Way bill?
Form GST EWB-01 Contains two parts–
Part A Contains details of Seller & Recipients Such as name,address GSTIN of Seller /recipients, Place of delivery,HSN Code etc
Part B Contains Details of Transporter (It is not Mandatory – If distance is upto 50 kms)
What is Form GST EWB-02?
Where in one conveyance multiple consignments are intended to be transporter. In such case transporter may indicate serial no. of e-way bill generated in respect of EACH such consignment
A Consolidated E-Way Bill may be prepared by him (Transporter) in FORM GST EWB-02 before movement of goods.
What is Validity of E-Way Bill?
Explanation:- For a distance of less than 200 Km, the e-way bill will be valid for a day from the relevant date. For every 200 Km thereafter, the validity will be additional one day from the relevant date. If goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.
Validity of E way bill can be extended also.
Section 93 of Central Motor Vehicle Rules 1989, made under Motor Vehicles Act 1988 defines the concept of over dimensional cargo (ODC).
What E-Way bill provision in case of Export and Import of goods?
In case of Export: – The e-way bill has to be generated when the goods are being moved to port for exportation.
Customer Premises being moved to the Port – Yes,E-way will be generated
But from Port to foreign country – No, E-way will be generated
Relaxation: –Export of Goods to Nepal and Bhutan has been exempted by Government.
In case of Export: – The e-way bill has to be generated when the goods are being moved to the customer premises from port.
Foreign country to Port – No, E-way will be generated.
But from Port to customer premises – Yes, E-way will be generated.
What is Vahan System?
Vahan is a National register containing details related to registered vehicles. Details of registered vehicles can be searched on VAHAN.
Why E-way bill system needs integration with VAHAN System?
Such integration is required to check /validate whether the registration number of a vehicle at the time of preparing an e-way bill. Any attempt to use a vehicle number for e-way bill generation but not registered on the VAHAN system will NOT be allowed.
What is step by step Guide to Generate EWay Bill (EWB-01) online?
1) Go to ewaybill.gst.in – Click to login on top right side corner.
2) Enter the Username, password and Captcha code & then Click on ‘Login’.
3) Click on ‘Generate new’ under ‘E-waybill’ option appearing on the left-hand side
4) Fill all the details in Part A and Part B of this bill and then click on submit.
How the e-Way Bill looks like when generated online?
Some special points related to E Way Bill
Invoice Value exceeds Rs. 50,000 OR
If a vehicle carries goods against multiple Invoices, then where the aggregate Invoice value exceed Rs. 50,000
So, if either of above points is satisfied, the user should generate e-Way Bill.
Author:- The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA related advisory, litigation & compliance matters.
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