Comprehensive Guide on GST E-Way Bill Applicability and Compliance in India

1. Introduction to GST E-Way Bill

The GST E-Way Bill is an electronic document required for the movement of goods from one location to another. It must be carried by the transporter along with the tax invoice or delivery challan to authenticate the transportation of goods. The E-Way Bill system was implemented in India from April 1, 2018, under the Goods and Services Tax (GST) regime.

The Central Board of Indirect Taxes and Customs (CBIC) administers GST and provides an online platform for the generation and validation of E-Way Bills, accessible at ewaybillgst.gov.in. The government is also working on linking the E-Way Bill system with the VAHAN portal, maintained by the Ministry of Road Transport and Highways, for vehicle verification.

2. Applicability of GST E-Way Bill

2.1 Who Needs to Generate an E-Way Bill?

An E-Way Bill must be generated in the following scenarios:

• Supplier: If transporting goods through self-owned or hired conveyance, railways, air, or vessel.
• Recipient: If the supplier does not generate the E-Way Bill, the recipient must do so.
• Transporter: If the goods are handed over to a transporter for movement.

2.2 When is an E-Way Bill Mandatory?

• If the value of goods transported exceeds INR 50,000.
• If multiple consignments with individual values below INR 50,000 but a total exceeding INR 50,000 are being transported in a single vehicle, a consolidated E-Way Bill must be generated by the transporter.
• If there is a change in vehicle during transit, the transporter must update details on the portal before continuing the journey (FORM GST EWB-01).

2.3 Validity of an E-Way Bill

The validity period of an E-Way Bill depends on the distance covered:

• Up to 100 km – 1 day
• Every additional 100 km – 1 extra day If the validity expires before the goods reach their destination, a fresh E-Way Bill must be generated.

3. Exemptions from E-Way Bill Requirement

E-Way Bills are not required in the following cases:

• Non-motorized transport: Goods transported via bicycles, hand carts, etc.
• Customs clearance: Goods moving between ports, airports, inland container depots (ICDs), and container freight stations (CFSs) under customs supervision.
• Rail transport by government entities: If the consignor is the Central/State Government or a local body.
• Short-distance transport: Movement within 50 km within the same state.
• Certain exempt goods: As per Rule 138, including:
  
  • LPG for household consumption
  • Postal baggage
  • Currency
  • Personal household effects
  • Jewellery

4. E-Way Bill Generation Process

Step 1: Registration

• Registered taxpayers and transporters must create a user profile on the E-Way Bill portal (ewaybillgst.gov.in).

Step 2: E-Way Bill Generation

• Log in to the portal and select Generate E-Way Bill (EWB-01).
• Enter invoice details, transporter details, and vehicle details.
• Submit and generate a unique E-Way Bill Number (EBN).

Step 3: Updating and Modifications

• If the vehicle changes during transit, update the vehicle number on the portal before further movement.
• If an error is found, cancel the E-Way Bill within 24 hours of generation.

5. Penalties for Non-Compliance

• Failure to generate an E-Way Bill: Penalty of INR 10,000 or tax evaded amount, whichever is higher.
• Incorrect details: May lead to seizure of goods and vehicle until penalty is paid.

6. Benefits of E-Way Bill System

• Seamless movement of goods: Reduces checkpoints and transportation delays.
• Real-time tracking: Enhances transparency in goods movement.
• Integration with VAHAN portal: Ensures vehicle authenticity.
• Reduced tax evasion: Automation ensures compliance with GST laws.

With the ever-evolving GST laws, it is crucial for businesses to stay updated and comply with regulatory requirements. At ReturnFilings.com, we provide expert assistance in GST compliance, ensuring hassle-free operations while you focus on your business growth. For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091 to ensure all statutory obligations are met on time.

7. Additional Resources

For further reading, explore the following topics:

• GST E-Invoicing Guide – Understanding how GST e-invoicing integrates with the E-Way Bill system.
• GST Annual Return Filing – Comprehensive guide on annual return filing under GST.
• GST Refund Mechanism – Process and eligibility criteria for claiming GST refunds.
• GST Return Filing – Comprehensive guide on return filing under GST.

Frequently asked questions (FAQs) on GST E-Way Bill Applicability and Compliance

General Information about E-Way Bills

1.       What is a GST e-way bill?

A GST e-way bill is a document that is electronically generated on the GST portal for the movement of goods exceeding a specified value. It contains details of the goods being transported, the transporter, and the destination.  

2.       Why are e-way bills required?

E-way bills are required for: Tracking the movement of goods. Preventing tax evasion. Improving logistics efficiency.  

3.       Who needs to generate an e-way bill?

Any registered GST taxpayer who is transporting goods (inter-state or intra-state) exceeding the specified value (currently ₹50,000, but it’s crucial to check the latest notifications as this threshold can be subject to change) needs to generate an e-way bill.  

4.       What are the components of an e-way bill?

An e-way bill has two parts: Part A: Contains details like the consignor and consignee details, invoice number, and description of goods. This part needs to be generated before the movement of goods begins. Part B: Contains transporter details (vehicle number). This part needs to be updated by the transporter during the transit.  

Applicability of E-Way Bill

5.       When is an e-way bill required?

An e-way bill is required when: Goods are being transported. The value of the goods exceeds the specified threshold (currently ₹50,000). The movement is inter-state or intra-state.  

6.       Are there any exemptions from generating e-way bills?

Yes, there are certain exemptions, including: Movement of certain specified goods (e.g., LPG, kerosene, postal articles). Check the latest notifications for the updated list of exempted goods. Transport of goods by non-motorized vehicles. Movement of goods within a notified area.  

7.       What is the validity period of an e-way bill?

The validity period of an e-way bill depends on the distance being travelled. Shorter distances have shorter validity periods. Check the GST portal for the exact validity rules based on distance.  

Generation and Compliance

8.       How is an e-way bill generated?

E-way bills are generated online through the GST portal (www.gst.gov.in) or through SMS or API integration.  

9.       What is the process for generating an e-way bill?

The process generally involves: Visiting the GST portal. Logging in to the GST account. Navigating to the “E-way Bill” section. Entering the required details in Part A (and Part B, if the transporter information is immediately available). Generating the e-way bill.  

10.   What information is needed to generate an e-way bill?

Information needed includes: Consignor and consignee details. Invoice details. Description of goods. HSN code. Transporter details (if available at the time of generation of Part A). Vehicle number (for Part B update).

11.   What happens after the e-way bill is generated?

The e-way bill must be carried by the person in charge of the conveyance during the transportation of goods.  

12.   What is the responsibility of the transporter?

The transporter is responsible for updating Part B of the e-way bill with the vehicle number.  

13.   What happens if the e-way bill expires?

If the e-way bill expires before the goods reach the destination, a new e-way bill needs to be generated.

Other Considerations

14.   Can I update the vehicle number after generating the e-way bill?

Yes, there is a provision to update the vehicle number in Part B of the e-way bill.  

15.   What happens if the goods are not transported?

If the goods are not transported after generating the e-way bill, the e-way bill can be cancelled within a specified time limit (usually 24 hours).  

16.   What are the penalties for non-compliance with e-way bill rules?

Non-compliance can lead to penalties as per the GST law.

Other generally asked questions related to GST e-way bill compliance

17.   How do I register on the e-way bill portal?

Your GST login credentials are used for registration on e-way bill portal.

18.   What is the format of an e-way bill?

The format is specified by the GST Council.

19.   How do I print an e-way bill?

You can print the e-way bill from the e-way bill portal.  

20.   What are the HSN codes required for e-way bills?

You will need the correct HSN codes for your goods.

21.   Can I generate a consolidated e-way bill for multiple consignments?

No, a separate e-way bill is required for each consignment.

22.   What if the goods are transported in multiple vehicles?

Separate e-way bills might be needed depending on the circumstances.

23.   What are the common errors faced while generating e-way bills?

Common errors include incorrect data entry and technical issues.  

24.   How can I track the status of my e-way bill?

You can track the status on the e-way bill portal.  

25.   What are the latest notifications and circulars related to e-way bills?

The GST portal is the official source for notifications and circulars.  

26.   Where can I find help and support for e-way bills?

The GST portal provides resources and helpdesk support.