E-Way Bill Under GST: Rules, Process, and Compliance
An E-Way Bill is a mandatory electronic document required for the movement of goods valued above ₹50,000 under the Goods and Services Tax (GST) regime. It ensures seamless tracking and compliance with GST regulations. This blog post covers everything about E-Way Bills, their rules, when they are required, and how to generate them.
1. What is an E-Way Bill?
An E-Way Bill (Electronic Way Bill) is a digital document generated on the GST portal that contains details of the movement of goods, such as:
Invoice or delivery challan details
Transporter details
Goods value and HSN code
Place of origin and destination
The E-Way Bill helps track goods movement and ensures that the required tax has been paid.
2. When is an E-Way Bill Required?
An E-Way Bill is mandatory when:
Goods worth more than ₹50,000 are transported inter-state or intra-state.
Goods are moved by a registered person for supply, inward supply, or job work.
Goods are transported due to sale, return, or transfer to a branch.
Unregistered businesses send goods to a registered recipient.
Goods are transported by e-commerce operators under GST.
3. When is an E-Way Bill NOT Required?
An E-Way Bill is not required in the following cases:
Goods are transported within a state and the value is below ₹50,000.
Goods transported by non-motorized conveyance (e.g., cycle rickshaw, handcart).
Transport of exempted goods (e.g., fruits, vegetables, newspapers, etc.).
Goods moved for customs clearance or within ports.
Empty cargo containers are being transported.
4. How to Generate an E-Way Bill?
The E-Way Bill is generated on the E-Way Bill Portal using the following steps:
Step 1: Log in to the Portal
Visit ewaybillgst.gov.in and log in with your GST credentials.
Step 2: Select ‘Generate New’
Go to the ‘Generate E-Way Bill’ section.
Step 3: Fill in the Transport & Invoice Details
Provide details such as invoice number, GSTIN of the recipient, HSN code, transporter ID, and vehicle number.
Step 4: Generate & Print the E-Way Bill
Click on ‘Generate’ to receive the unique E-Way Bill Number (EBN).
Print and carry the E-Way Bill during transportation.
5. Validity of an E-Way Bill
The validity of an E-Way Bill depends on the distance covered by the goods:
| Distance | Validity Period |
|---|---|
| Up to 200 km | 1 day |
| For every additional 200 km | 1 extra day |
For Over Dimensional Cargo (ODC):
| Distance | Validity Period |
| Up to 20 km | 1 day |
| For every additional 20 km | 1 extra day |
6. Consequences of Not Carrying an E-Way Bill
Failing to generate or carry an E-Way Bill can result in penalties and detention of goods:
Penalty of ₹10,000 or tax amount (whichever is higher).
Goods and vehicle may be detained or seized.
Additional fines may be imposed under Section 129 of the CGST Act.
7. Updating & Cancelling an E-Way Bill
Modify Transporter Details: If the vehicle is changed, update the vehicle number on the portal.
Cancel an E-Way Bill: If goods are not transported, an E-Way Bill can be cancelled within 24 hours.
Conclusion
The E-Way Bill system is crucial for smooth transportation of goods under GST. It ensures transparency, prevents tax evasion, and improves logistics tracking. Businesses must stay compliant by generating, updating, and carrying E-Way Bills for seamless trade operations.
For any E-Way Bill-related queries, feel free to ask in the comments!
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