E-Way Bill or the Electronic Way Bill is an electronically generated document that is mandatory to be produced for any specific consignment or for the transport of goods from one place to another. The GST regime states that this document is necessary for both intrastate and interstate transportation of goods valued at over Rs 50,000.
The e Way Bill for the interstate transportation of goods has been initiated from the 1st of April while the system for intra-state transport of goods has been initiated in phases from the 15th of April.
The Digital e Way Bill replaces the Way Bill, a physical document that was required for the movement of goods during the VAT era.
Who should generate e-Way Bill?
1) GST Registered Person:
a) A registered person can cause the movement of goods or consignment, either in the capacity of a buyer or a seller in his/her own vehicle or hired vehicle or by railroad or airplane or sea. In such a case, this person or the recipient must generate e Way Bill in Form GST EWB 01 electronically on the common portal by furnishing information in part B.
b) Similarly, if a registered person causes the movement of goods but hands them over to a transporter to be transported by road, the Bill has to be generated by the transporter. However, the details of the transporter have to be provided in Part B of Form GST EWB by the registered person. After this, the Electronic Way Bill will be generated by the transporter by the information provided by the registered person by means of Part A of Form GST EQB 01.
2) Unregistered person:
a) When the transport of goods is caused by an unregistered person by using his/her conveyance or hired conveyance or using the services of a transporter, then the e Way Bill needs to be generated either by the unregistered person or by the transporter, by filling in Form GST EWB-01.
b) When an unregistered person is sending goods to a registered person, and the registered person is known to the unregistered person at the time of the movement of the consignment, then it will be so considered that the registered person is moving the goods. In such a case, either the registered person or the transporter will have to generate the Bill.
When to generate e-Way Bill?
The Bill has to be generated before the commencement of the transportation of goods which are valued at Rs 50,000. The movement of goods can be about a supply or reasons other than supply, like return, or inward supply from an unregistered person.
In terms of a Digital e-Way Bill, supply is considered either a payment in the course of business or a payment which may not be in the course of business or no consideration of payment.
The e Way Bill explained
The Bill consists of two distinct parts – Part A and Part B.
The Part A of the form collects the details of the consignment, usually about the invoice. The various details that need to be filled in are:
a) GSTIN or GST Identification Number of Recipient of goods
b) Place of Delivery: The Pin Code of the place where goods are to be delivered.
c) The invoice or Challan number of the supplied goods
d) The total value of the goods
e) The Harmonized System of Nomenclature or HSN Code of the transported goods is required. For turnover up to Rs 5 crores, the first two digits need to be mentioned while for a turnover of more than Rs 5 crores, four digits of the HSN code need to be mentioned.
f) Reasons for transportation from a pre-determined list
g) Transport Documents Numbers like Goods receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Loading Number.
The Part B of the form requires the filling in of the details of the transporter including the vehicle number.
The procedure for generating e-Way Bills
The Digital e-Way Bill can be generated by means of the online e Way Bill system or by means of an SMS. However, the bill has to be generated before the goods are transported.
I) In case of an unregistered sender and registered recipient, the recipient is considered to be the supplier. If the goods are transported intrastate or intra-union within 10 km or less from a place of business to the business place of a transporter with the intention of further transportation, the supplier or the transporter is not required to furnish the details of conveyance in Part B of FORM GST EWB-01.
On the other hand, if supply is made by means of air or ship or railways, then the consignor or the recipient will have to complete Part A of FORM GST EWB-01.
II) In case the transporter of goods has to generate the Bill, he/she will have to do it before the transport of goods. The Electronic Way Bill will be created on the basis of information completed by the registered person in Part A of GST EWB-01.
III) In case the registered person is consignor or consignee and the goods are given to the transporter, the Bill has to be generated before the transportation. The registered person then will have to complete Part B of the Bill and furnish information about the transporter GST EWB-01.
IV) If the registered person is consignor or consignee OR is the recipient of goods, the Bill must be generated prior to the movement of goods. The registered person has to complete Part B in the GST EWB-01 form.
V) A person registered under GST will have to fill in the details before the commencement of the movement of goods. Part A is to be completed in GST EWB-01 form.
Under GST, the transporter needs to carry the Digital e-Way Bill while transporting goods from one place to another.
In case of any queries, do visit www.entransact.com.