Your Simple Guide to GST eWay Bill: How to Generate Online
Your Simple Guide to GST eWay Bill: How to Generate Online
An eway bill is an abbreviation for Electronic Way Bill. It is a digital document used to track the movement of goods during their transportation, especially in the context of the Goods and Services Tax (GST) system. When goods worth more than Rs. 50,000 are transported by a person registered under GST, an e-way bill must be generated through the GST Portal to accompany the goods in transit. This electronic document ensures proper compliance with tax regulations and facilitates monitoring of goods’ movement from one location to another. In this article, we will delve into the details of the e-way bill system. We’ll explore its purpose, significance, and how it operates within the Goods and Services Tax (GST) context.
Who should generate an eWay Bill?
The e-way bill should be generated in the following cases for individuals or businesses with GST registration:
- When there is a movement of goods worth more than Rs. 50,000 to or from a registered person, this means that both the supplier and the recipient, who is registered under GST, are responsible for generating the e-way bill when the value of goods being transported exceeds Rs. 50,000.
- Even if the value of goods being transported is less than Rs. 50,000, a registered person can still choose to generate an e-way bill voluntarily.
- When supplying goods to a registered person, an unregistered person must generate an e-way bill. In such cases, the registered recipient of the goods must ensure that all the necessary compliances are met and the e-way bill is generated.
The transporter is responsible if the supplier (registered person) has yet to generate an e-way bill for the goods transported. In this situation, the transporter, irrespective of the value of the goods, must generate the e-way bill.
Attributes of Eway bill
The e-way bill format consists of Part A and Part B.
Part A of the e-way bill.
Part A collects the essential details of the consignment, typically the invoice details. The following information needs to be provided in Part A:
- GSTIN of the recipient (the person to whom the goods are being supplied)
- The Pin code of the place where the goods are being delivered
- The invoice or challan number associated with the supply of goods
- The value of the consignment (the monetary value of the goods being transported)
- HSN code of the goods being transported. For businesses with a turnover of up to Rs.5 crores, the first two digits of the HSN code should be mentioned. A four-digit HSN code is required for businesses with a turnover of more than Rs.5 crores.
- The reason for transportation needs to be selected from predefined options, and the most appropriate one should be chosen.
- The transport document number, which can be the goods receipt number, airway bill number, railway receipt number, etc., must be provided.
Part B of the e-way bill
Part B of the e-way bill contains transportation details, such as vehicle number (for road transportation) or conveyance details (for transport by rail, air, or ship). Part A and Part B together form a complete e-way bill, which is mandatory for the movement of goods exceeding Rs. 50,000 in value within or across state borders under the GST regime.
Documents Required Generating an E-way Bill:
To generate an e-way bill, the following documents are required, depending on the mode of transport:
For Transport by Road:
- Invoice/Bill of Supply/Challan related to the goods being transported.
- Transporter ID or the Vehicle Number of the vehicle used for transportation.
For Transport by Rail, Air, or Ship:
- Invoice, Challan relevant to the consignment of goods Bill of Supply,.
- Transporter ID
- Transport document number and date, which are specific to the mode of transport used (rail, air, or ship).
Validity of Eway Bill
The validity of the eway bill is determined based on the distance covered by the goods being transported.
|Type of Conveyance
|E-way Bill Validity
|Other than Over dimensional cargo
|Less than 100 km
|For every additional 100 km and thereof
|Additional one day
|For Over dimensional cargo
|Up to 20 km
|For every additional 20 km and thereof
|Additional one day
- For goods other than over-dimensional cargo, the e-way bill remains valid for one day if the transportation distance is less than 100 km. Additionally, for every additional 100 km or part thereof, one day is added to the validity period of the e-way bill.
- For over-dimensional cargo, the e-way bill is valid for one day if the distance is up to 20 km. One day is added to the validity period for every additional 20 km or part thereof.
The validity period calculation starts when the eway bill is generated.
Refer to our article to know more about the Advantages and Disadvantages of the eWay bill
Procedure to Generate eWay Bill on the eWay Bill Portal:
Generating an e-way bill on the GST E-Way Portal involves the following steps:
- Step 1: Access the E-Way Bill Generation Portal
- Log in using your GST and transporter registration credentials.
- Step 2: Click on “Generate New”
- From the E-Way Bill Main Menu page, select the “Generate New” option to initiate creating a new e-way bill.
- Step 3: Fill in the Details
- A new e-way bill generation form will appear. Fill in the required details, similar to creating a GST invoice. Depending on whether you are the supplier or recipient, select “Outward” or “Inward,” respectively. Provide details of the supplier and recipient, along with their GSTIN, if applicable. The system will automatically fill in other details based on the entered GSTIN.
- Step 4: Enter Goods Description: In the second half of the page, fill in the following information:
- Product name and description, similar to a tax invoice
- HSN Code for the product. (You can find the HSN code on the GST portal)
- Quantity and unit of the goods being transported
- Value of the products and the applicable tax rate
- IGST or CGST rates, depending on whether it’s an inter-state or intra-state transport
- The approximate distance of transportation, Transporter Name, and Transporter ID, which determines the validity of the e-way bill
- Step 5: Generate E-way Bill
- After providing all the necessary details, click the “SUBMIT” button to create the e-way bill. The portal will display the e-way bill number and a digital QR code containing all the details. The printed copy of the e-way bill should be handed over to the transporter for carrying throughout the journey until it is delivered to the consignee.
- Step 6: Consolidate E-way Bill Generation (Optional)
- A consolidated e-way bill can be created if required by providing the “E-Way Bill number” in the required field. Click on “SUBMIT” to generate the consolidated e-way bill.
SMS E-Way Bill Generation
SMS e-way bill generation is a convenient option for entities with fewer transactions, as it may not be suitable for higher transportation volumes.
This method can be especially useful in emergencies, such as when generating an e-way bill during nighttime or while traveling in a vehicle.
While SMS e-way bill generation provides flexibility and ease of use, businesses with a higher frequency of transactions are advised to utilize other methods available on the GST E-Way Bill Portal for generating e-way bills efficiently and effectively. This approach ensures smooth compliance and tracking of goods in transit for businesses with more significant transportation requirements.
Exemptions and Cases When E-Way Bill is Not Required
E-Way Bill Exemptions and Cases When Not Required:
E-way bill is not required when transporting the following goods:
- Liquefied petroleum gas (LPG) for supply to household and non-domestic exempted category customers
- Postal baggage transported by the Department of Posts
- Kerosene oil sold under the Public Distribution System
- Precious or semi-precious, Natural or cultured pearls, precious metals, stones, and metals clad with precious metal
- Jewelry, goldsmiths, silversmiths’ wares, and other articles (Chapter 71).
- Used personal and household effects.
- Coral, unworked (0508), and worked coral (9601).
E-way bill is not required for specific customs-related movements:
- When transporting goods from a customs port, air cargo complex, airport, or land customs station to an inland container depot or a container freight station for customs clearance.
- When goods are transported using non-motorized conveyances.
E-way bill is not required for the transportation of the following goods:
- Alcoholic liquor for human consumption.
- Petroleum crude.
- High-speed diesel.
- Motor spirit (commonly known as petrol).
- Natural gas.
- Aviation turbine fuel.
In certain cases, e-way bill generation is optional:
- E-way bill is optional when there is no supply according to provisions in Schedule III of the Act.
These exemptions and optional cases simplify the e-way bill process for specific goods or movements, providing flexibility and ease of transportation for businesses.
E-way bill is not required for specific customs-related movements, transit cargo to and from Nepal or Bhutan, goods exempt from tax under various notifications, transportation by rail undertaken by the Central Government, State Government, or a local authority, transportation by defense formations under the Ministry of Defense, transport of empty cargo containers, and transportation of goods for weighing purposes within 20 km from the consignor’s business to the weighbridge or, accompanied by a delivery challan.
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