Rules Regarding e-Way Bill Under GST

Narendra Kumar

01 Apr, 2021

Through the introduction of the E-way bill under GST,  it is expected that the GST collections procedure shall get more simple and improves one however the portal faces technical challenges and vehicle are intercepted for verification.

Latest Notification:

E-way bill effectiveness for the movement of goods in the following states is given below:

1. In Delhi effective from 16th June 2018.
2. In Andaman & Nicobar, Chandigarh, Dadar & Nagar Haveli, Daman & Diu, Lakshadweep, Maharashtra, and Manipur effective from 25th May 2018.
3. On trial basis for the intra-state movement of goods for Odisha from 23rd May 2018.
4. Roll out of e-Way Bill system^[1] in the States / Union Territory of Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim and Pondicherry from 25 April 2018.

What are the features of E-Way Bill under GST?

1. E-Way Bill is generated on the e-Way bill under GST portal; it is an electronic way bill for movement of goods to be made in one to so ever manner.
2. Movement of goods means and include the following:

Supply of goods

For any reasons other than the supply of goods

Procurement of goods from an unregistered person,

Import of goods

E-way bill needs to be generated for all movement of goods until certain categories of goods have been specifically excluded

1. E waybill is required to be generated for the transport of goods of more than Rs. 50,000 by way of Single Invoice or bill or delivery challan in value.
2. Cancellation or generation of an E-way bill can also be generated through SMS.
3. For every e-way bill generated a unique e-way bill number (EBN) is generated which is available to the supplier, recipient, and the transporter.
4. E-way is not required to be generated for the following:

the Goods which have been exempted from GST

Certain specified goods e.g. jewellery, household effects precious or semi-precious stones, currency, used personal and LPG

Goods which are out of the preview of GST alcohol, crude oil, petrol, diesel, natural gas, and

Wherein the transportation of empty cargo containers is to be done by way of non-motorised conveyance.

7)    The consignment value must include the taxes also into it.

8)   No limit of Rs 50,000/- is there in case of inter-state movement of goods from principal manufacturer/ brand owner to job worker.

What are the contents of e-way bill?

1. Form (GST EWB-01) has two parts – Part A and Part B. Part A contain invoice number and date, GSTIN of supplier and recipient, HSN and value of goods etc. Part B contains details such as vehicle number in case of road transport, transport document number.
2. For the Intra-State movement, Part B is not required to be filed in case of intra-state movement within 50kms.
3. When vehicle details in Part B are updated after that only the Validity of e-way bill under GST starts

What are the rules regarding Validity and Cancellation of the e-way bill?

1. E-way bill generated is valid for 1 day for every 100 km or part thereof.
2. In the case of over-dimensional cargo, the separate validity period of 1 day for every 20kms is required to be generated.
3. To count the validity period it is to be counted as period expiring at midnight of the day immediately following the date of generation of the E-bill.
4. The validity of existing e-way bill may be extended in expiry due to exceptional circumstances,
5. After expiry of 24 hours from the time of generation cancellation of the e-way bill is not possible.
6. Once the E-way bill has been verified in transit it cannot be cancelled.

Steps to be taken by a person engaged in the activities related to supply or movement of goods as stipulated under GST rules.

1. The register is required to be done on the e-way bill portal at site www.ewaybillgst.gov.in.
2. Understand the treatment and generation of E-way bill in typical cases like as sales return or rejection, free of cost supply, bill-to ship-to supply, ex-works supply etc.
3. Locate and designate a proper system and authority to generate, cancel and manage e-way bills.
4. Obtain transporter
5. Changes the required changes in ERP system/SOPs in accordance with the e-way bill management.
6. All the agreements, undertakings, contracts with vendors, customer and transporter is needed to amend and changed in accordance with the E-way bill under online GST registration requirement.
7. Only in case of inter-state movement of goods if such situation arises wherein the value of an invoice/challan is not exceeding the value of Rs 50,000 but the total consignment value of goods which is required to be transported in conveyance exceeds Rs 50,000 in total value in such cases the transporter is required to generate an e-way

Read our article:Major Announcements made in 28th GST Council Meeting