E-Way Bill is an electronic way bill for inter state transport of goods of more than Rs. 50,000 which can be generated on the eWay Bill Portal.
Transport of goods of more than Rs. 50,000 (Single Invoice/bill/delivery challan) in value in a vehicle cannot be made by a registered person without an eway bill.
How e-way bill can be generated?
Eway bill can also be generated or cancelled through SMS, Android App and by Site-to-Site Integration(through API).
When an eway bill is generated a unique eway bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.
There are some essential documents that must be required for generating an eway bill (for any method of generation):
1. Registration on the EWB portal
2. The Invoice/ Bill/ Challan to the consignment of goods must be in hand.
3. If transport is by road – Transporter ID or the Vehicle number.
4. If transport is by rail, air, or ship – Transporter ID, Transport document number, and date on the document.
Who should generate an E-way bill?
- Registered persons – Eway 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 eway bill even if the value of goods is less than Rs 50,000.
Unregistered persons – Unregistered persons are also required to generate 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 e-Way Bill if the supplier has not generated an e-Way Bill.
Why is it important?
The e-way bill is a key anti-tax evasion measure and is a crucial part of the GST architecture. Tax authorities believe its implementation will dissuade tax evaders from underreporting transactions. It will also check instances where the entire transaction is not recorded due to connivance between the seller and buyer. It will provide a boost to GST revenues, which have stabilized around Rs85,000-90,000 crore. The government is hoping that this anti-evasion measure will bring buoyancy.
Transportation of goods that not required e-way bill.
No e-way bill is required to be generated in following cases [rule138(14) of CGST Rules].
(a) The goods being transported are specified in Division Two.
(b) The goods are being transported by a non-motorised conveyance.
(c) The goods are being transported from the port, airport,complex and land customs station to an inland container depot or a container freight station for clearance by Customs; and
(d) In respect of movement of goods within such areas as are notified under rule 138(14)(d) of the GST Rules of the concerned State. Thus, each State has been delegated powers to grant exemptions from provisions relating to e-way bill.
Following items are included in Annexure to rule 138(10). For transport of these goods, e-way bill is not required.
All items exempted under Notification Nos. 2/2017-CT(Rate) and 2/2017-IT (Rate) both dated 28-6-2017. The major among them are as follows – Fresh, Meat, Fish, Chicken, Eggs, Milk, Butter Milk, Curd, Natural Honey,Fresh Fruits and Vegetables, coffee beans, wheat, rye, rice,Flour, Besan, Bread, Prasad, Salt, Bindi, Sindoor, Stamps,Judicial Papers, Printed Books, Newspapers, Bangles,Handloom, Pooja equipment, jute, khadi, national flag, rawsilk.
2. Passenger baggage (9803)
3. Specified Puja samagri
4. Liquefied petroleum gas (LPG) for supply to household and non-domestic exempted category (NDEC) customers
5. Kerosene oil sold under PDS
6. Postal baggage transported by Department of Posts
7. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal
(Chapter 71)
8. Jewellery, goldsmiths’ and silversmiths’ wares and other articles
9. Currency
10. Used personal and household effects