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Eway Bill: From Definitions to Exemptions

The electronic way bill or the Eway Bill came into effect after the Goods and Service Tax (GST) was formalized in the Indian economy. In essence, an Eway Bill is a document that is necessary for the safe transportation of goods. It also includes the names of the consignee, consignor and the transporter. The e way bill comes into parlance when goods, whose worth is over INR 50,000 need to be transported either inter-state or intra-state.

Section 68 of the CGST Act 2017 mentions that it is mandatory for the transporter or the person in charge of the conveyance to have the Eway Bill when their consignment crosses the INR 50,000 mark. One of the major advantages of the Eway Bill system gst e way bill is that it has revolutionized the movement of goods, helped increase the efficiency of the logistics industry, and enhanced the turnaround time of trucks. Especially for inter-state movements, the Eway Bill has altered the physical checkpoints with a digital interface.

Understanding the E-way Bill

The Eway Bill, which was introduced under the GST regime, is a valid electronic document required for the safe passage of goods within and inside Indian states. A person who is GST registered is not legally allowed to travel with consignments that exceed the value of INR 50,000. According to Rule 138 of the CGST Rules, 2017, it is mandatory for the conveyor to have the Eway Bill before the commencement of their journey.

The e-way bill system has proved to be very beneficial for the transportation industry. The Eway Bill can be generated online through the e-way bill portal or it can be done through SMS as well.

The Rules Surrounding the Eway Bill System

As the Eway Bill was formed under the GST regime, the rules and regulations surrounding the system is under the watchful eyes of the government. The rules are compiled in parlance with the CSGT Act of 2017 and follow the CGST Rules to the core. Some of the rules that are essential to the Eway Bill are discussed below:-

Application of the E-way Bill

 As stated by the CGST Act, enacted in 2017, all goods moving within or outside the boundaries of the state exceeding the limits of fifty-thousand Indian rupees need to generate the Eway Bill. The applicability of this rule is widespread, and thus, it is mandatory for every transport vehicle to have the Eway Bill in order to avoid legal troubles.

Requirement of Documentation While Travelling

When one is traveling with the consignment, it is necessary for one to have the Eway Bill at all times. It should be with them in either a physical or digital form. If found otherwise, it can lead to legal impunities and confiscation of the goods. 

Validity of Eway Bill:-

Depending on the distance a good travels, the Eway Bill has the required validity. The rules is that the e way bill remains valid for one day for one hundred kilometres.

Enforcement of the Eway Bill by the Law Authorities

When one is in transit, tax official and members of the tax department have the authority to check and verify the Eway Bill. If it is discovered that one does not have the proper bill or there has been some discrepancies, then one is liable to fines and legal penalties.

Generation Procedure:-

The Eway Bill has all the required information about the good that is being transported and can be downloaded from the official website or the e way bill login online portal. The transporter, supplier or the recipient who have the necessary information can access the bill. 

State-wise Generation of Eway Bills

Due to an increased amount of inter-state movements, there have been certain cases of state-wise implementation of the Eway Bill. In the case of Tamil Nadu, the government has provided the people with an exemption of eway bill if the value of the goods fall below INR one lakh. 

Who Can and Cannot Generate the Eway Bill?

The Eway Bill gets issued when there is a supply of goods – here supply indicates that there is an exchange of goods for money and not any form of barter system.

Thus, the people who can generate the Eway Bill by downloading it from the Eway Bill login portal are:-

A registered person

The registered person, under the GST Act, is under legal provisions to generate the Eway Bill if the value of their consignment exceeds the INR 50,000 limit. Although, a registered person or transporter can also choose to generate the eway bill if the consignment is below fifty-thousand rupees.

An unregistered person

Not just the registered person, but also the unregistered person needs to generate the Eway Bill. But, in cases where a supply is carried out by an unregistered person to a registered person, the receiver has the duty to ensure that all the compliances are seen to as if they were the supplier.

Transporter

In cases where the supplier has not generated the Eway Bill, the transporter has to generate it. Although, they need not generate the Eway Bill in cases where the goods are less than or individually equal to INR 50,000 but in aggregate crosses the INR 50,000 marks. 

Situation Who Shall Generate the Bill
When the supplier themselves transport the consignment in their vehicle The supplier
When the supplier is unregistered and transports the good in their own or other vehicle to a registered recipient  The recipient
When an unregistered supplier gives the goods to the transporter The transporter
When the goods are moved in a hired vehicle or through air or rail The recipient
When a registered supplier gives the goods to the transporter The transported

Exemption of the Eway Bill

There are also certain instances when one does not have to generate the Eway Bill. The exemptions from the bill are discussed below:-

  • If the transit cargo is being transported to or from Nepal or Bhutan.
  • The way the cargo is being transported is a non-motor vehicle way.
  • If the cargo being moved consists of empty containers
  • One need not pay if the goods are being moved under Custom Supervision or under the formation of the Ministry of Defence as a consignee or consignor. Thus, the goods that are arriving from a customs station or are transported to a customs port are exempted from generating the Eway Bill. 
  • The generation of Eway Bill is also exempted if the consignment is under order from the state, central and the local authority. The goods in these cases are carried out via rail. 
  • If the required state or Union territory law states that the consignment being transported does not require the Eway Bill. 

Eway Bill Login and Generation Procedure

If the goods that you are transporting, you are legally required to carry the eway bill. In order to generate bill, you have to go through an e-way bill login procedure.

Step 1: Registration on the Eway Login Portal

The first step that the taxpayers have to follow to generate the eway bill is register themselves on the official portal. This can be done by using their unique GST identification number. Following this, they are able to use the portal and generate the e-way bills as and when they require.

Step 2: Logging in to the portal

After the registration, users are redirected to a page where they can log in to the required way bill portal with their necessary credentials. Here, they can access the cancellations, generation, and modification of e-way bill options.

Step 3: Details

Once the user is directed to the Generate Eway Bill page. Here, one has to enter details from certain documents like invoice, date of invoice, details regarding the consignment, vehicle details if that is required, SAC’s code, and recipient’s details.

Step 4: Verification of Details

After the user has successfully logged in the details, they have to validate that the information so provided is accurate. Before the good is dispatched, the taxpayers should amend any misinformation for a genuine Eway Bill generation.

Step 5: Generation of the Eway Bill

After the information is validated, the portal shall generate a unique e-way bill number. Along with this, a QR code is also generated. Upon scanning the code, the user can download the Eway Bill and keep its printout with themselves.

Step 6: Transmission

 After the Eway Bill is generated, a copy of it is sent to the receiver, supplier, and transporter. Each stakeholder must have their own Eway Bill.

Step 7: Modification and Cancellation

If the taxpayer wishes to alter any information that they had initially provided, there is an option available on the portal. But, this change in whether it be device number or route direction should be carried out under the time specified by the CGST Act. If the taxpayer wants to cancel the movement of their transaction, the required option is available on the portal.

Necessary Documents for Eway Bill Generation

  • The chalan/ supply/ invoice bill
  • The details of the recipient 
  • The details of the transporter (if any)
  • The required tax invoice
  • The details of the product or good
  • Transport ID
  • The registered phone number

Thus, as transportation of goods and heavy goods have become a regularity now, taxpayers need to know the nuances to avoid any legal hassle. It has made movement of goods a lot more flexible and a knowledge of its rules, exemptions and generation procedure shall be extremely beneficial to the ones involved in the business.

Also Read:

The Best Betting Sites That Accept Trustly in 2023 by Tim Harrison at BetZillion

Changes in the e-Way Bill System after e-Invoicing

David Scott
David Scott
Digital Marketing Specialist .
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