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What is an e-way bill?
An e-way bill is a permit required for interstate and intrastate movement of goods. Learn more about its regulations, advantages and processes in this blog.
To decrease and eradicate tax fraud in the country, the Government of India introduced the e-way bill (EWB) system in 2018. When transporting high value goods, the GST regime requires carriers to procure an e-way bill – a permit for transportation. This is a compliance method where anybody transporting goods needs to upload appropriate information before the start of the process and create an e-way bill on the GST portal.
What is an e-way bill in exports?
An e-way bill is a permit required for interstate and intrastate movement of goods worth INR 50,000 or more from one location to another within the country. It can be generated through the e-way bill portal and usually contains information on products, consignor, recipient and transporter. E-way bills can also be created or canceled through an SMS or android application by entering the GSTIN of the parties involved1.
Recent notifications on e-way bill 2
E-way bills can only be produced in the event that the supplier GSTNs are in the "Active" status. If a supplier's GSTIN is listed as "Suspended," "Provisional," "Inactive," or "Cancelled," an e-way bill cannot be created. E-way bills, however, can only be produced in cases where the recipient's GSTIN is either "Active" or "Suspended" rather than "Provisional," "Inactive," or "Cancelled."
● While e-way bills can be generated when the recipient or transporter's GSTIN is used, the GSTIN cannot generate e-way bills as a supplier if it is blocked.
● A revised request payload requires encrypting the entire payload with the public key. This endpoint now offers a new authentication API.
● At least one item (goods) should have an HSN code. Documents containing simply the SAC code (services) cannot be used to produce an e-way bill.
● For state code 97 (Other territory), PIN code 999999 is permitted.
● Vehicle Number must be supplied if the "TransMode" is "4" (Ship), and the "VehicleType" may be "O" (ODC).
● Transporters can now download the e-way bills that have been assigned to them by entering their state code and the e-way bill assignment date using a new API.
● Direct e-will generation using the e-will system is disabled for GSTINs suitable for e-invoicing whose document dates fall after October 1, 2020. B2B or export transactions are allowed, and "INV" documents are the preferred document format.
● If the canceled other party GSTIN was active on the date indicated in the document, an e-way bill may be generated.
If an e-way bill is not present in the e-way bill system's master database and its first three digits do not match the state in question, a PIN code is generated according to the postal department's defined PIN code-to-state mapping pattern.
● While e-way bills can be generated when the recipient or transporter's GSTIN is used, the GSTIN cannot generate e-way bills as a supplier if it is blocked.
● A revised request payload requires encrypting the entire payload with the public key. This endpoint now offers a new authentication API.
● At least one item (goods) should have an HSN code. Documents containing simply the SAC code (services) cannot be used to produce an e-way bill.
● For state code 97 (Other territory), PIN code 999999 is permitted.
● Vehicle Number must be supplied if the "TransMode" is "4" (Ship), and the "VehicleType" may be "O" (ODC).
● Transporters can now download the e-way bills that have been assigned to them by entering their state code and the e-way bill assignment date using a new API.
● Direct e-will generation using the e-will system is disabled for GSTINs suitable for e-invoicing whose document dates fall after October 1, 2020. B2B or export transactions are allowed, and "INV" documents are the preferred document format.
● If the canceled other party GSTIN was active on the date indicated in the document, an e-way bill may be generated.
If an e-way bill is not present in the e-way bill system's master database and its first three digits do not match the state in question, a PIN code is generated according to the postal department's defined PIN code-to-state mapping pattern.
When should an e-way bill be issued?
When goods worth INR 50,000 or more are transported in a vehicle across the country, an e-way bill is created, concerning a ‘supply’.
A supply might be any of the following:
• A supply made for a payment in the course of business.
• A supply made for a payment that may not be in the course of business.
• A supply without consideration (without payment).
In simpler terms, the term ‘supply’ usually means:
• Sale of goods and payment made
• Transfer like branch transfers
• Barter/exchange (a method of payment in which goods are exchanged for money)
E-way bills for any of the above-mentioned cases must be created on a single platform.
• A supply made for a payment that may not be in the course of business.
• A supply without consideration (without payment).
In simpler terms, the term ‘supply’ usually means:
• Sale of goods and payment made
• Transfer like branch transfers
• Barter/exchange (a method of payment in which goods are exchanged for money)
E-way bills for any of the above-mentioned cases must be created on a single platform.
Who can generate an e-way bill?
A registered individual (consignor, consignee, receiver or transporter) can create an e-way bill if the transportation is done by them or through hired means of transportation (air, rail, or road). If both the consignor and consignee do not create an e-way bill, the transporter must generate it2.
Unregistered person:
The unregistered transporter can enroll on the common portal and generate the e-way bill for the movement of goods for his clients.3
Registered person:
Transporter:
If both the consignor and consignee do not create an e-way bill, the transporter must generate it.
Uses of an e-way bill
The government may demand that the person in charge of a conveyance transporting any consignment of goods with a value over a set amount carry with him any prescribed documentation and devices, according to Section 68 of the Goods and Services Tax Act.3
• According to Rule 138 of the Karnataka Products and Services Tax Rules, 2017, e-way bills must be carried for shipments of products valued at more than fifty thousand rupees.
• The government has published a notification under Products and Services Tax Rules, 2017 Rule 138, requiring the transportation of products with a value of more than fifty thousand rupees to be accompanied by an electronic way bill.
• According to Rule 138 of the Karnataka Products and Services Tax Rules, 2017, e-way bills must be carried for shipments of products valued at more than fifty thousand rupees.
• The government has published a notification under Products and Services Tax Rules, 2017 Rule 138, requiring the transportation of products with a value of more than fifty thousand rupees to be accompanied by an electronic way bill.
Contents of an e-way bill
It is necessary to generate the EWB-01 via the e-way bill portal online. The form GST EWB-01 includes the 12-digit e-way bill number, the e-way bill's validity term, and the date of generation, along with the generator's name.
An e-way bill is divided into two parts:
Part A provides invoice information such as:
• GSTIN of the supplier and receiver
• Place of delivery and pin code
• Place of dispatch and pin code
• Date, value of goods, and invoice/challan number
• HSN codes
• Transportation used for the following reasons: supply, export, import, job work, sales return, exhibition, etc.
Part B includes transporter information such as:
• Temporary vehicle registration number
• Defense vehicle number
• Transporter ID
Under the current method, a taxpayer can generate both portions from the e-way bill. The information in Part A of Form GST EWB-01 must be filed before the start of the transportation of goods. Part B (i.e., transportation information) can be filed later by the transporter.5
An e-way bill is divided into two parts:
Part A provides invoice information such as:
• GSTIN of the supplier and receiver
• Place of delivery and pin code
• Place of dispatch and pin code
• Date, value of goods, and invoice/challan number
• HSN codes
• Transportation used for the following reasons: supply, export, import, job work, sales return, exhibition, etc.
Part B includes transporter information such as:
• Temporary vehicle registration number
• Defense vehicle number
• Transporter ID
Under the current method, a taxpayer can generate both portions from the e-way bill. The information in Part A of Form GST EWB-01 must be filed before the start of the transportation of goods. Part B (i.e., transportation information) can be filed later by the transporter.5
Format of an e-way bill
Documents required to generate an e-way bill
• Invoice, bill of supply or challan of consignment of goods
• In case of road transportation, transporter ID or vehicle number
• In case of transport via rail, air or ship, transporter ID, transport document number and documentation date
• In case of road transportation, transporter ID or vehicle number
• In case of transport via rail, air or ship, transporter ID, transport document number and documentation date
Modes of generating an e-way bill
The supplier or transporter can generate an e-way bill through any of the following ways3:
1. E-way bill portal
2. SMS
3. Android pp
4. GST Suvidha providers
5. Site-to-site integration (through an API)
The first step for any of these options is to visit the portal and register.
1. E-way bill portal
2. SMS
3. Android pp
4. GST Suvidha providers
5. Site-to-site integration (through an API)
The first step for any of these options is to visit the portal and register.
Steps to generate the e-way bill on the portal
Step 1:
Go to the e-way bill generation page and enter your login information.
Step 2:
To generate a new e-way bill, go to the e-way bill main menu and select ‘Generate New’.
Step 3:
A new EWB bill generation form appears. Fill in the necessary information.
Step 4:
Choose outward if you are the supplier and inward if you are a receiver. Enter the required information.
Step 5:
Choose document type from invoice, challan, credit note, Bill of Entry, or others if not listed.
Step 6:
Add document or invoice number.
Step 7:
Choose the date of the invoice, challan, or document.
Step 8:
Fill in product name and description.
Step 9:
Enter the HSN code for the product, quantity, and value, along with the tax rate.
Step 10:
Add IGST or CGST rates as applicable.
Step 11:
After entering relevant information, click the ‘Submit’ button to generate an EWB – a unique 12-digit number and QR Code, which provides information in a digital format.
A printed copy of the bill must be given to the transporter.
A printed copy of the bill must be given to the transporter.
Steps to generate the e-way bill on mobile via SMS
Before generating an e-way bill on SMS, it is important for the individual to ensure they have registered their mobile number on the GST e-way bill portal. Once done, the below steps can be followed:
Step 1:
Select ‘SMS’ from the ‘Registration’ drop-down menu on the e-way bill portal.
Step 2:
An OTP will be sent to the registered phone number and email address.
Step 3:
Enter the OTP and submit a request to create an e-way bill.
Format of an e-way bill
An e-way bill is divided into two parts:
Part A provides invoice information such as GSTIN of the supplier and receiver, delivery address, HSN codes, invoice number, etc.
Part B includes transporter information such as vehicle number, transporter ID, etc.
Under the current method, a taxpayer can generate both portions from the e-way bill. The information in Part A of Form GST EWB-01 must be filed before the start of transportation of goods. Part B (i.e., transportation information) can be filed later by the transporter5.
Part A provides invoice information such as GSTIN of the supplier and receiver, delivery address, HSN codes, invoice number, etc.
Part B includes transporter information such as vehicle number, transporter ID, etc.
Under the current method, a taxpayer can generate both portions from the e-way bill. The information in Part A of Form GST EWB-01 must be filed before the start of transportation of goods. Part B (i.e., transportation information) can be filed later by the transporter5.
E-way bill rules
E-way bills are usually procured for transportation of consignment of goods that is worth INR 50,000 or above. If an e-way bill is issued and the products are not transported as indicated, the bill must be canceled. When many consignments are transported in a single transit, the transporter must create an e-way bill for each of the consignments individually on the platform.
E-way bill penalties
If a shipment is found to be without an e-way bill, the individual responsible must pay penalty. In the absence of an e-way bill, the departmental officer may hold or confiscate goods and vehicles used.
Modification, cancellation and rejection of an e-way bill
Cancellation
A new e-way bill cannot be created against an invoice until the old e-way bill has been canceled. If the products are not delivered or transported as per the information provided, the e-way bill can be canceled online on the portal within 24 hours of its production. Below is a step-by-step procedure to cancel an EWB:
• Select e-way bill option on the portal and click the ‘cancel’ button.
• Add the bill number and press ‘go’.
• Choose a reason for cancellation like duplication, canceled orders or data entry errors.
• If your reason for cancellation is not covered in the predefined options, you can type it and click ‘cancel’.
• Select e-way bill option on the portal and click the ‘cancel’ button.
• Add the bill number and press ‘go’.
• Choose a reason for cancellation like duplication, canceled orders or data entry errors.
• If your reason for cancellation is not covered in the predefined options, you can type it and click ‘cancel’.
Modification:
Except for Part B, which can be modified with transportation details, an e-way bill cannot be modified once it has been created. If incorrect information has been entered while creating it, the bill can be canceled within 24 hours of being generated.
Rejection:
On the site, a recipient of goods can check the details of the e-way bill created against them. An e-way bill may be rejected by the recipient of goods within 72 hours after its creation. If an e-way bill is not canceled or rejected within the time-frame indicated, it is considered accepted.
Cases when an e-way bill is not required
E-way bills may not be required in the following situations:
• Consignment value is less than INR 50,000
• When the products being transported are GST-free
• Transportation is provided by a non-motorized vehicle
• Goods are transferred to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance from a customs port, air cargo complex, airport or land customs station
• Goods moved under customs control or with a customs seal
• Goods are transported less than 10 kilometers within the same state
• Cargo traveled to or from Nepal or Bhutan en route
• Empty cargo containers are transported
• Goods are carried by rail and the consignor is the central, state or local governments
• Goods excluded from e-way bill requirements under GST rules of a particular state or union territory
• Consignment value is less than INR 50,000
• When the products being transported are GST-free
• Transportation is provided by a non-motorized vehicle
• Goods are transferred to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance from a customs port, air cargo complex, airport or land customs station
• Goods moved under customs control or with a customs seal
• Goods are transported less than 10 kilometers within the same state
• Cargo traveled to or from Nepal or Bhutan en route
• Empty cargo containers are transported
• Goods are carried by rail and the consignor is the central, state or local governments
• Goods excluded from e-way bill requirements under GST rules of a particular state or union territory
Benefits of e-way bills
• Reduces logistical costs by improving accuracy and eliminating tax evasion
• Accessible to carriers is the installation of an RFID device in the vehicle used to convey consignments regularly. The person in charge of the vehicle will no longer need to deliver paper copies since the device is attached to the vehicle and the e-way bill can be mapped and confirmed through the device.
• Quick and hassle-free transportation
• Reduces number of checkpoints located across state borders and on major roadways
• Lower turnaround time for transport vehicle
• Eliminates the need to contact e-way bill department through paperless transaction
• Accessible to carriers is the installation of an RFID device in the vehicle used to convey consignments regularly. The person in charge of the vehicle will no longer need to deliver paper copies since the device is attached to the vehicle and the e-way bill can be mapped and confirmed through the device.
• Quick and hassle-free transportation
• Reduces number of checkpoints located across state borders and on major roadways
• Lower turnaround time for transport vehicle
• Eliminates the need to contact e-way bill department through paperless transaction
Disadvantages of e-way bills
• In areas with restricted internet connectivity, generating an e-way bill becomes challenging
• Businesses with daily product transfers might face compliance issues
• Bill extension generates numerous e-way bill numbers from a single dispatch or invoice, resulting in duplication
• Businesses with daily product transfers might face compliance issues
• Bill extension generates numerous e-way bill numbers from a single dispatch or invoice, resulting in duplication
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Frequently Asked Questions
What is the validity of an e-way bill?
The validity of an e-way bill depends on the distance traveled by the goods and date and time of bill generation.
What are the penalties for not carrying or presenting an e-way bill?
If a shipment is found to be without an e-way bill, the individual responsible must pay penalty.
How many days after raising an invoice one should generate the e-way bill for delayed delivery?
The e-way bill is only needed when the products are delivered. Thus, part A of the e-way bill can be generated if the invoice is raised but the items have not yet been delivered, and part B details can be submitted once the goods have been delivered. The moment Part B is input, the e-way bill's validity starts.12
What is the responsibility and liability of the transporter in the e-way bill system?
In the event that the supplier has not produced an e-way bill for any reason, carriers of goods by rail, air, road, etc. must also create an e-way bill. Create an electronic waybill based on the details provided by consignors and suppliers about the invoice and challan. Visit our article on "Compliance on e-way bills by Transporter" to learn more. Should the carrier fail to produce under the aforementioned conditions when obliged to, he may be subject to a fine of Rs 10,000 or the amount of tax avoided, whichever is higher. Additionally, he may be held accountable for the confiscation of products and the seizure of their vehicle.
Can an e-way bill number be assigned to another transporter?
The authorized transporter may assign an e-way bill to any enrolled or registered transporter for onward carriage of goods. The new transporter can only update Part B of the EWB. If the supplier of goods wishes to change the transporter or reassign the e-way bill, they can do so by selecting the option ‘Change/Re-assign another transporter’ on the portal.
Can I add two invoices in one e-way bill?
No, two invoices cannot be used to generate a single e-way bill. Consolidated e-way bills, however, can be used to combine two or more e-method bills.
What is the URP in the e-way bill?
In the event that the consignee or consignor is an unregistered taxpayer and does not possess a GSTIN, the user must put 'URP' (Unregistered Person) in the relevant GSTIN column.
What is the criteria of “Value of Consignment of Goods” applied?
The meaning of "Value of consignment of Goods" is as follows:
1. The invoice value* above Rs. 50,000
OR
2. When a vehicle transports items against several invoices, the total invoice value* surpasses Rs. 50,000.
Therefore, the user should generate an e-way bill if either of the aforementioned conditions is met. The term "invoice value" refers to the transaction value as stated in the invoice, which includes all taxes but does not include the value of any exempt products that are being transported and billed with taxable goods. 12
1. The invoice value* above Rs. 50,000
OR
2. When a vehicle transports items against several invoices, the total invoice value* surpasses Rs. 50,000.
Therefore, the user should generate an e-way bill if either of the aforementioned conditions is met. The term "invoice value" refers to the transaction value as stated in the invoice, which includes all taxes but does not include the value of any exempt products that are being transported and billed with taxable goods. 12
Published on November 29, 2022.
Sources:
1. https://www.cbic.gov.in/resources//htdocs-cbec/gst/E%20Way%20Bill%20Provisions%20in%20GST_Web.pdf
2. https://docs.ewaybillgst.gov.in/documents/usermanual_ewb.pdf
3. https://icmai.in/TaxationPortal/upload/IDT/Article_GST/64.pdf
4. https://www.indiafilings.com/learn/e-way-bill-consolidation-rejection-and-cancellation/
5. https://cbic-gst.gov.in/pdf/18062019-FAQs-EwayBill-Faq.pdf
6. https://www.srcc.edu/sites/default/files/GST.pdf
7. https://ewaybillgst.gov.in/
8. https://cbic-gst.gov.in/pdf/18062019-FAQs-EwayBill-Faq.pdf
9. https://gst.kar.nic.in/latestupdates/Ewaybillprovisions.pdf
10. https://www.business-standard.com/article/economy-policy/gst-e-invoicing-must-for-entities-with-rs-10-cr-turnover-from-oct-1-122080200553_1.html
Sources:
1. https://www.cbic.gov.in/resources//htdocs-cbec/gst/E%20Way%20Bill%20Provisions%20in%20GST_Web.pdf
2. https://docs.ewaybillgst.gov.in/documents/usermanual_ewb.pdf
3. https://icmai.in/TaxationPortal/upload/IDT/Article_GST/64.pdf
4. https://www.indiafilings.com/learn/e-way-bill-consolidation-rejection-and-cancellation/
5. https://cbic-gst.gov.in/pdf/18062019-FAQs-EwayBill-Faq.pdf
6. https://www.srcc.edu/sites/default/files/GST.pdf
7. https://ewaybillgst.gov.in/
8. https://cbic-gst.gov.in/pdf/18062019-FAQs-EwayBill-Faq.pdf
9. https://gst.kar.nic.in/latestupdates/Ewaybillprovisions.pdf
10. https://www.business-standard.com/article/economy-policy/gst-e-invoicing-must-for-entities-with-rs-10-cr-turnover-from-oct-1-122080200553_1.html
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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