GST E-WAY BILL

What is the GST E-way Bill?

E way bill is short for Electronic Way Bill. GST E-way bill is a document used to track goods in transit introduced under the Goods and Service Tax. A taxable person registered under GST involved in the transportation of goods with a value of over Rs.50,000 must possess an E-way bill generated on the GST Portal.

LEDGERS has made E-way bill generation and management very simple for business. The Ledgers E-way bill tool is synced to GST invoices, bills of supply, purchases invoices, and customer or supplier accounts.

E-E-Way Bill can be generated seamlessly at the click of a button and shared with the customers or suppliers. The procedure for moving the movements of goods is prescribed in the E-way bill rules. However, it is to be noted that when the GST Act came into being on the 1st of July, the E-way bill implementation was deferred.

Who should generate an E-way bill?

Documents to generate E-way Bill

What documents are required to generate an E-way bill?

  • Invoice/ Bill of supply/ Challan relevant to the consignment of goods
  • In case of Transport by road- Transporter ID or the vehicle number
  • Transport by rail, air, or ship- Transporter ID, Transport document number, and date.

Format of GST E-way bill?

The E-way bill consists of two parts Part A and B. The Part A of the E-way boll collects the details related to consignment, usually the invoice details. Accordingly, the following information needs to be submitted.

  • GSTIN of the recipient must be submitted.
  • The Pin code of the place where goods are delivered needs to be mentioned.
  • The invoice or the challan number against which the goods are supplied must be submitted.
  • The value of consignment is to be mentioned.
  • HSN code of the goods which are transported should be entered. If the turnover is up to INR 5 crores, the HSN code’s first two digits should be mentioned. If the turnover is more than INR 5 crores, a four-digit HSN code is required.
  • The reason for transportation should be predefined, and the most appropriate one needs to be selected.
  • The transport document number should be indicated. It includes goods receipt number, railway receipt number, airway bill number.

How to Generate E-Way Bill

An E-Way Bill (EWB) is an ‘electronic way’ bill for movement of goods which can be generated on the E-Way Bill Portal. Any supplier or a transporter transporting goods with a value of more than Rs.50,000 (Single Invoice/bill/delivery challan) in a single vehicle should carry a GST e-way bill as per the GST Council regulations. The supplier or the transporter of the goods must register with GST to obtain GST E-Way bill. This bill shall come into effect from 1st April 2018.

After generating the E-Way bill on the portal using required credentials, the portal generates a unique E-Way Bill Number (EBN) and allocates to the registered supplier, recipient, and the transporter. In this article, we look at the steps to generate a e-way bill on the Government website.

The supplier or the transporter can create the E-way bill through the following ways:

The validity of the eWay Bill

What is the minimum distance required for E-way bill?

The significant amendment made effective video notification no. 12/2018- Central tax dated 7th March 2018 changes in the validity period of E-way bill. The new validity period provisions of the E-way bill are tabulated here:

Type of ConveyanceDistanceE-way bill
Other than Over dimensional cargoLess than 100 km1 day
For every additional 100 km and thereofAdditional 1 day
For Over dimensional cargoUp to 20 km1 day
For every additional 20 km and thereofAdditional 1 day

The relevant date on which the E-way bill has been generated and the period of validity would be counted from the time at which the E-way bill has been generated, and each day would be counted as the period expiring at midnight of the day immediately following the date of generation of the E-way bill.

‘Over Dimensional Cargo’ is a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules,1989, made under the Motor Vehicles Act,1988 (59 of 1988).

SMS E-way Bill Operation

SMS e-way bill generation is ideal for entities with limited transactions, as it would be prudent to use other methods in case of higher volume.

SMS e-way bill generation facility can also be used by taxpayers in case of emergencies such as during the night or while involved in travelling in a vehicle.

Enabling SMS E-Way Bill Facility

Before starting to transact, the taxpayer must first register his/her mobile number on the GST e-way bill portal. The system only enables and responds to mobile number registered on the portal for a particular GSTIN.

  • Once user selects option ‘for SMS’ under main option ‘Registration’, following screen is displayed.
  • The user must enter the mobile number and complete the OTP to register the mobile number.

In the next screen the mobile number registered with the GSTIN is displayed. The user can use this screen for delinking or changing the mobile number, if required.

Step 1: Access to Portal

The taxpayer or the transporter must open the e-way bill portal and log in using his/her credentials.

Step 2: Register Mobile Number

Enable the SMS e-way bill facility by following the below shown above. Once validation is complete and the mobile number is registered, you are ready to generate e-way bill using SMS.

Who does not need a GST E-way bill?

  • When the below-mentioned goods are being transported E-way bill is not required :

    • Liquefied petroleum gas for supply to household and non-domestic exempted category (NDEC) customers;
    • Kerosene oil sold under PDS;
    • Postal baggage transported by Department of Posts;
    • Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71);
    • Jewelry, goldsmiths and silversmiths wares and other articles (Chapter 71);
    • Currency;
    • Used personal and household effects;
    • Coral, unworked (0508) and worked coral (9601).
  • In case of Transport of goods from customs port, airport, air cargo complex, and land customs station to an inland container depot or a container freight station for clearance by Customs, E-way bill is not required.

  • When a non-motorized conveyance is transporting goods, E-way bill generation is not required.

  • When following goods are being transported, the e-way bill is not required to be generated;

    • Alcoholic liquor for human consumption
    • Petroleum crude
    • High-speed diesel
    • Motor spirit (commonly known as petrol)
    • Natural gas,
    • Aviation turbine fuel
    • When there is no supply as per provisions in Schedule III of the Act, an E-way bill is not required.
  • E-way bill is not required to be generated when the goods are being transported—

    • Under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex, and land customs station, or one customs station or customs port to another customs station or customs port, or
    • Under customs supervision or customs seal;
    • Where the goods being transported are transit cargo from or to Nepal or Bhutan;
    • Where the goods being transported are exempt from tax under various notifications;
    • When Central Government, State Government, or a local authority acting as a consignor undertakes the Transport of goods by rail, no E-way bill is required.
    • When goods movement has been caused by defense formation under the Ministry of defense as consignor or consignee, no E-way bill is required.
    • No E-way bill is required in case of Transport of empty cargo containers.
    • In case goods are being transported for weighing purposes and the distance is not more than 20 Kms from the place of the consignor’s business to the weighbridge or vice versa, E-way bill generation is not required. However, the movement of goods must be accompanied by a delivery challan.
    • When goods specified in the schedule appended to notification no, 2/2017-Central Tax (Rate) dated 28.06.2017 is being transported, other than de-oiled cake, then in such case, e-way Bill is not required to be generated.