Before GST regime came into existence, waybills were required to facilitate supply of goods. These physical documents were obtained from VAT authorities. However, the complicated compliance requirements around waybills acted as a hindrance in the movement of goods across states.
The introduction of E-Way bill(EWB) is expected to give some relief to the logistics industry. As per the GST council meeting held on December 16th, 2017, the date of implementation would begin on a voluntary basis from January 15th, 2018, once the hardware and software requirements are ready. However, from February 1st, 2018 implementation of E-Way Bill system for interstate movement will become mandatory and states may choose any date for implementation before June 1st, 2018.
|Latest Update: The government has deferred GST e-Way bill rollout owing to the technical glitches disrupting trade. Extension of trial phase of the generation of e-Way bill has been decided. The same will be made compulsory from the date which is yet to be announced.|
E-Way bill should be generated when there is Inter-state & Intra-state movement of goods in relation to:
Here, a supply could be any of the following:
Registered person: If, the value of goods is worth more than Rs 50,000 and is made to or from a registered person then, the registered person or the transporter must generate EWB.
The registered person or transporter can also choose to generate EWB even if the value of goods is less than Rs 50,000.
Unregistered person: An unregistered person or transporter may also choose to generate e-way bill. However, if a supply is made by an unregistered person to a registered person, the receiver will have to do all the compliances as if he’s the supplier.
To generate an e-way bill, a registered person needs to file form GST EWB-01 in the GST common portal. The following table explains who needs to obtain e-way bill, when should he apply for it and how can he obtain it.
|Who needs it?||When should he obtain it?||Which part of GST EWB-01 form should he fill?|
|Every Registered person under GST||Before movement of goods||Fill Part A|
|Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods||Before movement of goods||Fill Part B|
|Registered person is consignor or consignee and goods are handed over to transporter of goods||Before movement of goods||Fill Part A & Part B|
|Transporter of goods||Before movement of goods||Fill form GST EWB-01 if consignor does not.|
|Unregistered person under GST and recipient is registered.||Compliance to be done by Recipient as if he is the Supplier.|
Note: A registered person may submit a tax invoice in Form GST INV-1 on the common portal and can obtain an Invoice Reference Number (IRN) If a registered person has uploaded the invoice, information in Part A of Form GST EWB-01 is auto populated from GST INV-1.
Information in Part A of Form GST EWB-01 is used for preparing GSTR-1.
An EWB is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of E-way bill-
|Distance||Valid From||Valid For|
|Less than 100kms||Date & time at which E-way bill is generated||1 day|
|For every extra 100kms||Date & time at which E-way bill is generated||An extra day for every 100kms|
Note: The Commissioner may extend the validity period of E-way bill for certain categories of goods.
If the E-way bill expires, then movement of goods cannot happen. In exceptional circumstances, an extension can be granted by the commissioner of the state.
Certain items of mass consumption have been excluded from E-way bill. These include:
Other items that are outside the ambit of the E-way bill include:
The generation of E-way bill will also not be required in two of the following cases:
Once an EWB is generated it cannot be modified. The e-way bill can only be cancelled if transport is no longer required or if the mode of transport is incorrect, however, it must be cancelled within 24 hours.
An E-way bill is only complete and valid once part B is filled out, otherwise it is invalid and goods cannot be moved. Part B can be completed only the person generating the EWB and the designated transporter mentioned in the bill. Only the transporter/generator can update any details in Plan B, which can be done numerous times, within the validity of the EWB. However, the transporter details cannot change.
A consolidated E-way bill is the document which contains multiple e-way bills for a single transport carrying several shipments. The transporter carrying the multiple consignments can generate the consolidated e-way bill.
It often happens that goods are transported with intermediary stops in between before reaching their destination. Additionally, goods are also transported through several modes of transport such as, air, rail, road etc. In both cases the transporter needs to update the vehicle number of new vehicle and/or mode of transport.
The TRANSIN is a unique 15-digit ID number assigned, generated by the e-way bill system, which can be shared with clients to generate a EWB. Once the transporter enters the required information, the ID is created. Generation of the TRANSIN is based on PAN and state code, similar to GSTIN. Additionally, the TRANSIN can be entered to assign the consignment to the specific transporter, so that he can update details as and when necessary.
In some circumstances, for several reasons, the recipient may reject the shipment. In such instances, the transporter can generate a new e-way bill for “Sales Return”, with the help of the recipient to return the goods to the supplier with all related documents.
In the absence of physical restrictions on movement of goods, some control is essential to ensure that goods are not clandestinely removed and sold. Karnataka, Rajasthan and Uttarakhand are examples of states that have already started complying with E-Way Bill requirements. Their successful implementation is a positive sign. However, it is important for the government to pacify the nervousness in the industry by ensuring a robust IT backbone, which will improve the ease of doing business.