What is GST E Way Bill & How It will Generate in Your State?

 

E-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of section 68 of the Goods and Services Tax Act read with rule 138 of the rules framed thereunder. It is generated from the GST Common Portal by the registered persons or transporters who cause movement of goods of consignment before commencement of such movement. GST e way bill is an electronic bill which will be required for the movement of goods in case the value of the goods are above 50,000 rupees. The bill can be generated from the GSTN portal and every registered taxpayer must require this e-way bill along with the goods transferred. And learn its implementation features, basics and method of generating e-waybill.

Need of E Way Bill

Section 68 of the Goods and Services Tax Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of Karnataka Goods and Services Tax Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods of value more than rupees fifty thousand. Government has issued a notification under rule 138 of Goods and Services Tax Rules, 2017 mandating to carry e-way bill for transportation of goods of consignment of value more than rupees fifty thousand. Hence e-way bill generated from the common portal is required to be carried.

Finally, the GST council has mandated the implementation of e way bill from 1st February 2018 in all the states and has given some liberty to implement there an individual pattern of e way bill but has stated that the bill must be implemented before 1st June 2018 anyhow.

The e way bill firstly will be implemented at the state level and later across the country. In this situation, if any local businessman either send goods outside the state or bring goods from outside the state, then e- waybill will be applied. Goods of VAT 47 A  will be included in the e-way bill. It includes nearly 38 items such as electrical items, sanitary napkins, dry fruits and plastic goods. E- Way Bill will be applicable to goods more than Rs 50,000.

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.

Basic Points to be Remember About GST E way Bill

  • GST E Way Bill Registration Guide
  • Pre-requisites to generate the e-way bill
  • Supply in E way Bill
  • E way Bill Validity Period
  • GST E Way Bill Preparation Guide
  • Method of Generating E way Bill
  • Process of E way Bill Circulation
  • E way Bill Acceptance
  • E way Bill Rejection
  • E way Bill Cancellation
  • Bulk Generation of E awy Bill
  • Items Exempted From GST E way Bill

There are various rules and regulations issued by the CBEC for the handling of the e-way bill. Those rules and be GST-e-way-bill-rules

Pre-requisites to generate the e-way bill

To generate the e-way bill, it is essential that the person shall be registered person and if the transporter is not registered person it is mandatory to get enrolled on the common portal of e-waybill (http://ewaybill.nic.in) before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported

What is a ‘Supply’ in Case of E way bill?

A supply may be –

  • Supplied for a consideration (means payment) in the course of business

  • Supplies made for a consideration (payment) which may not be in the course of business

  • Supplies without consideration ( without payment)

Central Board of Excise and Customs (CBEC) has proposed a GST e way bill in the event of transiting goods above INR 50,000 under the GST regime. This will ask for online registration of the goods consignment and this will give the tax authorities a right to inspect the element anytime if suspected of a tax evasion. The board has issued a draft rule over the Electronic way (e-way) billing which will be requiring registered entities to upload in a prescribed format on the GSTN officials website the details of the concerned goods or commodities which they wish to move in or out of the state.

In this, the GSTN will create e-way bills which are valid for a period of 1-15 days on the condition of distance travelling in which one day considered as 100 km and 20 days for more than 1000 km in transit. The draft rules stated that “Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.”

GST E Way Bill Validity Period According to the Distance

Sr. no. Distance Validity Period
1 Less than 100 km 1 Day
2 100 km or more but less than 300 km 3 Days
3. 300 km or more but less than 500 km 5 Days
4. 500 km or more but less than 1000 km 10 Days
5. 1000 km or more 20 Days

The incharge of conveyance will be mandated to keep the invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e way bill number in physical or Radio Frequency Identification Device (RFID) format with him and must be attached to the conveyance. The tax commissioner or the authorized officer can demand the e-way bill or the number associated to verify the details upon all the inter-state and intra-state movement of goods and commodities.

Benefits of GST E waybill Portal

  • Users can prepare master data of their customers, suppliers and products in order to facilitate the generation of the e-way bill.

  • Users can vigilante the e-way bill generated in their account
  • There are multiple ways of easy generation of e-way bill
  • User can make sub-user and roles on portal for easy generation of e-way bill
  • Users will get alerts on their registered mail/mobile number
  • Vehicle number will be recorded by either transport company or supplier of goods who is generating the e-way bill
  • QR code will be present on every e-way bill so that it is easy to see the summary
  • A detailed e-way bill can be generated for those who are carrying multiple consignments

Methods of Generating GST E Way Bill

Who Time Annexure Part Form
Registered person in GST Ahead of Goods Movement  Part A* Form GST INS-1
Registered person is consignee or consignor Ahead of Goods Movement  Part B** Form GST INS-1
Registered person is consignor or consignee and goods are transferred over to the transporter of goods Ahead of Goods Movement Complete Part A & B Form GST INS-1
Transporter of Goods Ahead of Goods Movement Complete Form GST INS-1 if consignor does not
Recipient is registered to the unregistered person Recipient Undertakes compliance assuming as supplier

*Part-A Slip is a temporary number generated after entering all the details in PART-A . This can be shared or used by transporter or yourself later to enter the PART-B and generate the E-way Bill. This will be useful, when you have prepared invoice relating to your business transaction, but don’t have the transportation details. You can enter invoice details and keep it ready for transportation, once the transportation is ready.

** Part -B- E-Way bill is complete only when Part-B is entered. Part-B is a must for the e-way bill for movement purpose. Otherwise printout of EWB says it is invalid for movement of goods.Part-B can be entered only by the generator of the EWB and transporter assigned in it. That is, the generator of EWB indicates who is authorized to move the goods by entering his transporter id. Only such transporter can login and update the Part-B.

The verification of physical conveyance can be taken out in the specific information of stealing of taxes as mandated by the rules. The guidelines further mentioned, “Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the said information in (prescribed form) on the common (GSTN) portal.”

Sources through which GST E waybill can be generated?

  • Web-based generation through laptop and desktops and Mobile with the help of browsers
  • Android app from smart phone
  • Through SMS via registered mobile number
  • API ( Application program interface) by connecting consumers IT process with e-way bill process
  • E-way bill toll through bulk generation
  • By third party service providers

Quick Process of How GST E way Bill Circulates

  • P Ltd delivers all the goods to X Traders through the transporting company Quick transporters
  • In this handling of goods, P Ltd have furnished all the related details of the stock in the Part – A while remaining details of transporters in the Part – B form of GST INS 01
  • So according to the details which are furnished by the P Ltd in Part A of form GST INS 01, the Quick transporters will be generating the e-way bill from GSTN portal, which is to be carried with the logistics vehicle

  • Just after the generation of the e-way bill, there will a unique e-way bill number also noted (EBN) sent to all the three parties involved, P Ltd , X traders and the Quick transporters for the security purpose

  • Apart from this, all the designated details of the e-way bill will be sent to the X traders for the validation for their acceptance and further proceedings

Acceptance of GST E way Bill

The generated e-way bill gets acceptance in the following cases:

  • The consignment of available e-way bill is accepted by the recipient who is registered on common portal
  • If in case the recipient doesn’t respond to the available E-way bill details within 72 hours, then it is considered that the e-way bill is accepted by the recipient.
  • The E-way bill does not need consent in the following case and considered to be accepted:
  • If the goods transportation comes under Annexure of Rule 138(14)
  • When the mode of transfer is non-motorised conveyance
  • if the movement of Goods is to the concerned areas of the states covered under clause(d) of sub-rule (14) of rule 138 of GST

Rejection of GST E-way Bill

The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill, it is deemed that he has accepted the details.

As per rules, the taxpayer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills.

• He can see on the dashboard, once he logs into the system.

• He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.

• He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by others.

• He can go to report and see the ‘EWBs by other parties’.

Cancellation of GST E-way Bill

Bill cannot Deleted but in the case, when E-way bill not transported to the mentioned place or not transported according to the details in the generated E-way bill within 24-hours of issuance, the bill is cancelled automatically by the common portal.

The cancellation can be done automatically through a common portal or by the order of commissioner through a Facilitation Center. By logging in the common portal using the ID and password of that particular Facilitation Center, the cancellation can be done. But if the bill is verified in transit as per the rule under 138B, the cancellation is not possible.

Items Exempted from Listing under GST E-way Bill

The central government has recently announced a list of particulars which are totally exempted from the e-way bill provision under the GST. These items are considered as common use items and are exempted from the necessity of having an electronic permit for the transportation under the GST scheme.

According to the goods and services tax, it is mandatory to have a permit i.e. E-way bill for transportation of consignment with Value more than 50000 in order to check tax evasion practices. But in a recent GST Council meeting on August 5, it was announced a list of 153 products which are totally exempted to be requiring any sort of e-way bill while transportation.

The list which is exempted from the e waybill includes some of the items like:

  • LPG
  • Kerosene
  • Jewellery
  • Currency
  • Live Bovine Animals
  • Fruits and Vegetables
  • Fresh milk
  • Honey
  • Seeds
  • Cereals
  • Flour
  • Betel Leaves
  • Raw Silk
  • Khadi
  • Earthen Pot
  • Clay Lamps
  • Pooja Samagri
  • Hearing Aid
  • Human Hair
  • Frozen Semen
  • Condoms
  • Contraceptives

 

Bulk Generation Facility

Any taxpayer of transporter can use the bulk generation facility. This facility can be used by the taxpayers, who have automated their invoice generation system. In one go they can prepare the bulk requests for e-way bill in a file from his automated system, say 100 to 500, and upload into the portal and generate e-way bill. This avoids the duplicate data entry into the e-way bill system and avoids the data entry mistakes.

To use the bulk generation facility, one has to prepare the e-way bill requests through JSON file. This can be done two ways – Taxpayer or transporter can prepare the same directly from his automated system. If he is unable do so, he can use an excel based bulk generation tool available on the portal. Here, he has to cut and paste the e-way bill requests as per the format and this tool facilitates to validate and generate the JSON file. For more details, please go to the ‘user manual of the bulk generation’ and ‘bulk generation tools’ under tool section and follow the instruction given in it.

Benefits of the bulk generation facility

– It avoids the duplicate keying in of the invoices to generate the e-way bill

– It avoids the data entry mistakes while keying in for e-way bill

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Use of API Interface

API interface is a site-to-site integration of website of taxpayer with the EWB system. API interface can be used by large taxpayers, who need to generate more than 200 invoices / e-way bills per day. However, the taxpayer should meet the following criteria to use the API interface.

• His invoicing system should be automated with IT solutions.

• He should be ready to change his IT system to integrate with EWB system as per API guidelines.

• He should be generating at least 1000 invoices/e-way bills per day.

• His system should have SSL based domain name.

• His system should have Static IP Address.

• He should have pre-production system to test the API interface.

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Benefits of API

Presently taxpayer generates invoices from his IT system and logs into EWB system and enters e-way bill requests and generate e-way bills.

Here, the taxpayer has to make double entries – once for Invoice generation in his system and second time for e-way bill generation. If he integrates API interface with his system to EWB system, he can avoid this. That is, he can avoid duplicate entry of invoice details for e-way bill generation. He can save the manpower and cost of operator for this purpose. Secondly API interface will eliminate data entry mistakes/errors being made by operator. It also saves time. Thirdly e-way bill number can be stored by the taxpayer system in his database with the corresponding invoice.

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