E-Way Bill under GST recently introduced in India. However, there are plenty of people doesn’t know how E-Way Bill under GST works.
Let us go through the basic questions on how E-Way Bill under GST work.
According to Rule 138 of CGST Rules, 2017 provides that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for reasons other than supply”.
Below are the list of key features of E-Way Bill under GST and how it will work?
1. What is GST E-Way Bill?
Under GST, the process and procedural aspects for the movement of goods are prescribed in the e-way bill rules. E-way bill stands for Electronic Way Bill. It is usually a unique bill number generated for the specific consignment involving the movement of goods. However, it is to be noted that the e-way bill implementation was deferred when GST came into being on the 1st of July, in order to give more time to the government, businesses and transporters to prepare for its full and final implementation. States like Gujarat continued to have Form 402 in GST, and clear rules were laid down as to how to help businesses fill a GST Form 402 online till the implementation of the GST e-way bill is complete.
2. When is the E-Way Bill applicable?
It is applicable for any consignment value exceeding INR 50,000. Even in case of inward supply of goods from unregistered person, E-Way Bill is applicable.
3. When should the E-Way Bill be generated?
The E-Way Bill needs to be generated before the commencement of movement of goods.
4. What is the validity of E-Way Bill?
- Less than 100 KM: 1 Day
- Every 100 Km or part thereof thereafter – 1 additional day
The validity period will be counted from the time of generation of the E-Way Bill. The validity period of the E-Way Bill may be extended by the commissioner for certain categories of goods, as specified in the notification issued in this regard.
5. Who should generate the E-Way Bill?
- When goods are transported by a registered person, either acting as a consignee or consignor in his own vehicle, hired vehicle, railways, by air or by vessel, the supplier or recipient of the goods should generate the E-Way Bill.
- When the goods are handed over to a transporter, the E-Way Bill should be generated by the transporter. In this case, the registered person should declare the details of the goods in a common portal.
- In case of inward supplies from an unregistered person, either the recipient of supply or the transporter should generate the E-Way Bill.
6. How to generate the E-Way Bill?
Form GST EWB-01 is an E-Way Bill form. It contains Part A, where the details of the goods are furnished, and Part B contains vehicle number.
7. Can E-Way Bill be generated for consignments of value less than INR 50,000?
Yes, either a registered person or a transporter can generate an E-Way Bill although it may not be mandatory.
8. What happens if multiple consignments are transported in one vehicle?
The transporter should generate a consolidated E-Way Bill in the Form GST EWB 02 and separately indicate the serial number of E-Way Bill for each of the consignment.
9. On the generation of E-Way Bill, will there be any reference number generated?
Upon generation of the E-Way Bill, on the common portal, a unique E-Way Bill number called ‘EBN’ will be made available to the supplier, the recipient, and the transporter.
10. What happens if goods are transferred from one vehicle to another vehicle in the course of transit?
Before transferring the goods to another vehicle and making any further movement of such goods, the transporter needs to update the details of conveyance in the E-Way Bill on the common portal in Form GST EWB 01.
Note: If goods are transported for a distance of fewer than ten kilometers within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, updating the details of conveyance in the E-Way Bill is not mandatory.
11. What happens if the consignor does not generate the E-Way Bill even though the value of consignment is more than INR 50,000?
The transporter has to generate the E-Way Bill in Form GST EWB 01 on the basis of the invoice, bill of supply or the delivery challan.
12. What happens if E-Way Bill is generated but goods are not transported?
The E-Way Bill can be canceled electronically on the common portal within 24 hours of its generation. The E-Way Bill cannot be canceled if it has been verified by an officer during transit.
13. Will the E-Way Bill be made available for acceptance to the recipient of goods?
Yes, the details of the E-Way Bill will be made available for the recipient of goods only if he is registered. The recipient of goods should communicate acceptance or rejection of the consignment covered by the E-Way Bill within 72 hours of the details being made available.
14. What happens if the recipient of goods does not communicate the acceptance of rejection within 72 hours?
If the recipient of goods doesn’t communicate acceptance or rejection within 72 hours, it will be deemed as accepted by the recipient.
15. Is there a facility to generate or cancel the E-Way Bill through SMS?
The facility of generation and cancellation of E-Way Bill will be made available through SMS.