In the system of goods transfer across India, the GST E-Way Bill is a vital electronic document. It takes the stage when products valued at over Rs.50,000 make their journey from one location to another, with a unique exception for Delhi. Here, within the bustling city limits, the e-way bill becomes a requisite companion when the product value exceeds Rs.1 lakh.
The digital preparation of this document is a mandatory act for the seamless flow of goods, in both interstate and intrastate movements. Interestingly, its validity extends beyond state boundaries as an e-way bill crafted in any state finds acceptance in the Indian states and union territories.
Date of Applicability of the E-Way Bill in GST
The implementation date for the E-Way Bill in the Goods and Services Tax registration system is a crucial aspect for businesses engaged in the transfer of goods across state borders. The GST e-way bill, as part of the GST Registration Process, became applicable for inter-state movement of goods starting from April 1, 2018.
Validity Period of the E-Way Bill
Understanding the validity period of an e-way bill is essential for businesses to ensure compliance with the Goods and Services Tax regulations. The validity is determined based on the distance covered during the transportation of goods.
- Distance Upto 100 km:
- Validity Period: 1 day
- For every additional 100 km or above:
- Validity Period: 1 additional day
It’s important to note that the specified validity applies to all cases, except for Over Dimensional Cargo.
Validity Period for Over Dimensional Cargo
In the case of Over Dimensional Cargo, a specialised set of rules is applicable to determine the validity period, commencing from the relevant date.
- Distance Upto 20 Kms:
- Validity Period: 1 day
- For every additional 20 km or above:
- Validity Period: 1 additional day
Meaning of Relevant Date in GST E-Way Bill Validity
Understanding the concept of the relevant date is crucial for determining the validity of the GST e-way bill, which plays a key role in the transportation of goods under the Goods and Services Tax framework.
The relevant date, concerning the validity of the GST e-way bill, is the date on which the GST waybill was generated. This date holds significance in calculating the duration of the e-way bill’s validity.
The validity period is computed from the moment the invoice was created. Each day is considered as the period expiring at midnight of the day immediately following the date of generation of the e-way bill.
Entities Who Need Generation of E-Way Bill Under GST
Under the GST registration system, the responsibility of generating the e-way bill falls on specific entities based on the nature of the transaction and the registration status of individuals involved.
1. Registered Individuals:
This involves:
- Supply-related Movements:
Every registered person causing the movement of goods, be it for supply (e.g., sales) or for reasons other than supply (e.g., sales return, branch transfer), is required to generate the e-way bill.
- Mode of Transportation:
If a registered person acts as a consignor or the recipient of the supply acts as a consignee, whether using their own conveyance or a hired one, or through railways, air, or sea, the GST waybill can be electronically generated by accessing the GST e-way bill login portal. This involves filling out Form GST EWB 01 after providing information in Part B of the form.
- Transportation by Road:
In the case where the registered person hands over goods to a transporter for road transportation without creating an e-way bill, it becomes the transporter’s responsibility to generate the e-way bill through the e-way bill login.
2. Unregistered Individuals:
This includes:
- Movement by Unregistered Person:
When goods are moved by an unregistered person, whether using their own conveyance, a rented conveyance, or through a transporter, the responsibility of creating the e-way bill falls on either the unregistered person or the transporter.
- Creation of E-Way Bill:
The e-way bill can be generated by the unregistered person or the transporter by accessing the GST e-way bill login on gst.gov.in, using the Form GST EWB-01. Even if the unregistered person is not formally registered, they have the capability to produce an e-way bill through the GST Portal.
This delineation clarifies the distinct obligations of registered and unregistered individuals in the generation of e-way bills, ensuring compliance with the GST regulations governing the movement of goods.
Situations Exempt from E-Way Bill Requirement
Under certain circumstances, the generation of an E-Way Bill is not mandatory. The following conditions outline situations where an E-Way Bill does not need to be produced:
1. Intrastate Movement within 10 Kilometres:
The transportation of items within the same state over a distance of fewer than 10 kilometres between the transporter’s and consignee’s places of business does not necessitate the generation of an e-way bill.
2. Intrastate Movement for Onward Transit within 10 Kilometres:
If goods are moved within the state for a distance of fewer than 10 kilometres between the consignor’s place of business and the transporter’s place of business for onward transit, the creation of an e-way bill is not obligatory.
3. Non-Motorised Mode of Transport:
When commodities are conveyed using a non-motorised mode of transport, such as hand carts or manually pulled carts, the requirement for an e-way bill is waived.
4. Transportation to Customs Clearance Points:
The movement of goods to an inland container depot or a container freight station for Customs clearance from the port, airport, air cargo complex, and land customs station does not mandate the generation of an e-way bill.
5. Specific Exemptions for Certain Commodities:
Certain commodities, including jewellery, personal and household effects, and others as listed in the prescribed exemptions, do not require the generation of an e-way bill.
6. Movement within Specified Zones:
Regarding the movement of products within the zones specified in clause (d) of sub-rule (14) of rule 138 of the relevant state’s Goods and Services Tax Rules, the generation of an e-way bill is not obligatory.
7. Distance between 10 and 50 Kilometres:
When transporting goods over a distance of more than 10 kilometres but less than 50 kilometres, an e-way bill is required, but it does not have to include the specifics of the conveyance.
These exemptions ensure that the e-way bill requirement aligns with the specific circumstances of goods movement, facilitating smoother logistics within the regulatory framework.
Documents and Devices for Goods Transportation
To ensure compliance with regulatory requirements during the transportation of goods, the person in charge of transport is obligated to possess the following documents and devices:
1. Essential Documents:
The person in charge of transport must have the original copy of the Invoice, Bill of Supply, or Delivery Challan. Additionally, either a physical copy of the e-way bill or the e-way bill number should be in possession.
2. Physical Attachment or RFID Mapping:
The e-way bill or its number should either be physically attached to the conveyance or mapped to a Radio Frequency Identification Device installed on the conveyance. This must be done in accordance with the instructions provided by the Commissioner.
3. Invoice Reference Number:
A registered person has the option to receive an Invoice Reference Number from gst.gov.in. This can be obtained by uploading a tax invoice in Form GST INV 1. The Invoice Reference Number can then be presented to the relevant officer for verification in lieu of the tax invoice. This number remains valid for a period of 30 days from the date of uploading.
These documents and devices are essential for the smooth and lawful transportation of goods, ensuring transparency and adherence to the Goods and Services Tax regulations. The inclusion of technology, such as RFID devices, demonstrates the modernisation of the logistics and tracking process in accordance with the guidelines set by the Commissioner.
Steps to Generate e-Way Bill in GST
Mentioned below are the steps to be followed to generate GST e-way bill:
1. Access the E-Way Bill Portal:
Visit the official GST E-Way Bill portal, which is designed to facilitate the creation and management of GST e-Way Bills.
2. Login to the Portal:
Log in to the GST E-Way Bill portal using valid credentials, including the GST identification number.
3. Go to E-Way Bill Generation Section:
On the portal, find and select the option for e-Way Bill generation.
4. Enter Required Details:
Fill in the necessary details related to the consignment, supplier, recipient, and mode of transportation. This includes information such as invoice details, quantity of goods, HSN code, and transport details.
5. Generate Unique E-Way Bill Number:
The system will generate a unique e-Way Bill number based on the provided information. This number serves as a reference for the specific consignment.
6. Save and Verify the Details:
Review the entered details and save the information to ensure accuracy. Verification is crucial to prevent errors in the generated GST e-Way Bill.
7. Choose the Mode of Transportation:
Indicate the mode of transportation, whether by road, rail, air, or ship, and provide relevant details accordingly.
8. Submit the E-Way Bill:
After entering and verifying all required information, submit the GST e-Way Bill through the portal.
9. Download the E-Way Bill:
Once the GST e-Way Bill is generated and submitted successfully, download the document for reference during the transportation of goods.
10. Present the E-Way Bill to Authorities:
Carry a physical copy of the e-Way Bill or provide the e-Way Bill number to the authorities as required during the movement of goods.
11. Alternative Methods:
Businesses can choose from various methods, including online portals, mobile apps, and SMS-based generation, to create e-Way Bills efficiently.
Final Thoughts
The GST E-Way Bill system stands as a very crucial component in the effective implementation of Goods and Services Tax regulations. It streamlines the process of documenting and tracking the movement of goods, promoting transparency and compliance. The generation of GST E-Way Bills involves providing comprehensive details about the consignment, suppliers, and recipients, ensuring accuracy in record-keeping. By leveraging various methods such as online portals, mobile apps, and SMS-based generation, businesses can seamlessly create and manage E-Way Bills. This digital solution not only facilitates efficient logistics but also contributes to the overall effectiveness of the GST registration framework in regulating the interstate and intrastate movement of goods.
