The e-way bill, abbreviated for electronic way bill, serves as a requisite permit for the transportation of goods exceeding the value of Rs. 50,000, whether it’s across state borders or within the same state.
- It encompasses crucial information including details about the goods, the sender, the recipient, and the transporter.
- This digital document can be seamlessly generated via the Goods and Services Tax Network (GSTN).
- Upon generation, a distinct E-way Bill Number (EBN) is assigned, accessible to the supplier, recipient, and transporter.
Working
- The process mandates that the e-way bill be generated prior to the commencement of shipment, encapsulating comprehensive particulars about the goods, their sender, recipient, and transporter.
- Despite the elimination of check-posts under the GST regime, any consignment may be subject to interception at any juncture for the verification of its accompanying e-way bill, applicable to both interstate and intrastate movement of goods.
- Failure to produce an e-way bill incurs a penalty of ₹10,000 or the evaded tax amount, whichever is greater.
Coverage
- Regarding its implementation, the GST e-way bill became obligatory from April 1, 2018, for interstate transportation of goods valued above Rs 50,000.
- Subsequently, commencing from April 15, 2018, it was progressively mandated for intrastate movements within a state.
- The validity of the e-way bill is contingent upon the distance the goods are slated to traverse.
- Generally, the bill remains valid for one day per every 100 kilometers of goods movement.
Goods excluded from e-way bill’s ambit
- Certain goods are exempt from the purview of the e-way bill, including perishable items (e.g., meat, dairy products, fruits, and vegetables), gold and silver jewelry, cooking gas cylinders, raw silk, wool, and handlooms.
Who should Generate an eWay Bill?
Registered Person:
- An E-Way bill must be initiated for the movement of goods exceeding Rs. 50,000 to or from a registered entity.
- Regardless of the value of goods being less than Rs. 50,000, a registered person or the transporter has the option to generate and carry an E-Way bill.
Unregistered Persons:
- Even unregistered individuals are mandated to generate an E-Way bill.
- However, in instances where an unregistered individual supplies goods to a registered entity, the recipient assumes responsibility for ensuring all regulatory requirements are fulfilled as if they were the supplier.
Transporter:
- Transporters operating via road, air, rail, etc., are also obligated to generate an E-Way bill if the supplier hasn’t already done so.
FAQs
Q: What is an Electronic Way Bill (E-Way Bill)?
A: An Electronic Way Bill, commonly known as E-Way Bill, is a document required to be carried by a person in charge of the conveyance of goods worth more than Rs. 50,000 in value, as mandated by the GST (Goods and Services Tax) regime in India.
Q: Who needs to generate an E-Way Bill?
A: E-Way Bills must be generated by registered GST taxpayers for the interstate and intrastate movement of goods, including both suppliers and recipients of goods, transporters, and other parties involved in the transportation of goods.
Q: How can one generate an E-Way Bill?
A: E-Way Bills can be generated through the official E-Way Bill portal or via SMS by registered users. Additionally, they can be generated through APIs (Application Programming Interfaces) for seamless integration with accounting and invoicing systems.
Q: What is the validity period of an E-Way Bill?
A: The validity of an E-Way Bill depends on the distance that the goods are to be transported. For distances up to 100 kilometers, the validity is one day, and for every additional 100 kilometers or part thereof, an additional day is added to the validity period.
Q: What are the consequences of non-compliance with E-Way Bill regulations?
A: Failure to generate an E-Way Bill when required or carrying incorrect/incomplete information in the E-Way Bill can lead to penalties under GST regulations, including fines and confiscation of goods. Additionally, it can disrupt the smooth movement of goods and result in delays and legal complications for businesses involved.
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