E–Way Bill under GST

What is E-Way Bill?

E–Way Bill is an electronically generated document that is required for transportation of goods from one place to another (whether it is inter-state or intra-state) if the value of goods more than Rs. 50,000/-.

Important Point: –

• It is the mandatory document from 01/02/2018 for the movement of goods from one place to another.
• If the transporter carrying multiple consignments then he needs to generate a consolidated E–Way Bill for all.
• If In any case, the transporter needs to transferred goods from one vehicle to another, then he has to generate a new E–Way Bill for a new vehicle.
• E–Way Bill can be generated and canceled from GST Portal, app, and by SMS.
• When an E–Way Bill is generated a unique E–Way Bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter
• For certain specified Goods, the E–Way Bill needs to be generated mandatorily even if the value of the consignment of Goods is less than Rs. 50,000:
  1. Inter-State movement of Goods by the Principal to the Job-worker
  2. Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

When E–Way Bill Needed to generate?

When the value of goods more than 50,000/-(either single invoice value is 50,000/- or consolidate of all invoices value which is carrying one vehicle/conveyance)

• If goods are transferred in relation to a supply (i.e. sale of goods)
• If goods are transferred for a reason other than supply (i.e. Sale Return/Branch transfer)
• If goods are supplied by an unregistered dealer to a registered dealer.

What is a supply under E–Way Bill?

• Sale – Means transferred goods for some consideration (Payment)
• Transfer – if goods transferred from head office to branch
• Exchange/Barter – if goods transferred against consideration of other goods from the recipient.

Who needs to generate an E–Way Bill?

• Registered Person – E-way 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 an e-way bill even if the value of goods is less than Rs 50,000.
• Unregistered Persons – Unregistered persons are also required to generate an 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. 
• Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate an e-Way Bill if the supplier has not generated an e-Way Bill.

When E-Way Bill is not required

            In the following cases, an E-way bill is not required to generate: –

• Goods are moved from the port, airport, air cargo complex for clearance by Customs.
• The specified goods Transported
• The goods are transported by non-motor vehicle

The validity of e-Way Bill

                The validity of the e-way bill depends on distance, which will travel by goods from where E-way bill generated. (either from the supplier or the transporter address). Validity starts from the date and time of generation of it.

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