What is E-way bill?
An e-way bill is a document issued by the party transporting goods with details of the type of goods being shipped, details about the transporter of the shipment and who it is being sent to, and details on where the journey is beginning from and where it is sent to.
As per the GST rules, a GST registered person cannot transport goods without an e-way bill if the value of goods exceeds Rs. 50,000 (single invoice/bill/delivery challan). E-way bills are generated on the eWay Bill Portal.
Every eway bill login consists of 2 parts. Part A and Part B. Part A consists of all the details of the shipment that were mentioned above and a few more that include GSTIN of the receiver, Invoice, the approximate estimation of the value of the goods that are being shipped, HSN code, Airway bill number, and the reason to justify the transport of said goods.
Part B consists of the details of the vehicle that is being used to transport the shipment.
Ex: Vehicle number etc.
When an e-way bill is generated, a unique Eway Bill Number (EBN) is generated and is sent to the supplier, transporter and recipient.
Why are e-way bills necessary?
E-way bills aim to smoothen the VAT based billing system that was traditionally in use. The introduction of GST – a centralized structure, brings in uniformity and eliminates any bottlenecks that were earlier created at check posts.
Any person who is transporting a shipment whose worth is more than Rs. 50,000 should generate an e-way bill.
An e-way bill ensures that all the goods that are transported are in line with the GST rules and no party involved is evading from paying tax to the government.
How to generate an e-way bill
Here are a few prerequisites for any person to create an eway bill:
Should be registered on EWB portal
Invoice of the shipment should be handy. Bill or challan can also be used here.
Registration documents of the vehicle used for transportation (If being transported by road)
Transporter ID, Transport Document Index and date on the document should be present if the shipment is being sent by railways or by air transport.
When should eWay Bill be issued?
Generally, an eway login is generated when the value of the goods that are being shipped is more than Rs. 50,000 and –
1) Any sender, receiver or transporter should generate an e-way bill if the transport of goods/shipment is being done on their own transport vehicle or through hired transport vehicles.
2) Any unregistered person who is sending a shipment of goods to a GST registered person. Here, however, it is the registered recipient who will have to initiate the e-way bill as the sender is not registered under GST.
3) If neither the sender nor the receiver generates an e-way bill, then it is the responsibility of the transporter to generate a bill. This, however, is only valid when the shipment is being transported via road travel.
But in a few cases, an e-way bill will have to be registered even when the value of the shipment is under Rs. 50,000. Those conditions are: 1) Inter-state movement of goods by the Principal to the Job worker. 2) When handicraft goods are being transported from one state to another and when the supplier, in this case, is exempted from GST registration.
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