Emergence of E-Way Billing System under GST Regime
The implementation of the Goods and Service Tax (GST) in India has brought a major change in the functioning of various sectors. It is going to be a year to its launch on July 1 this year and the entire world is witnessing its developments. Since its introduction, many initiatives have been undertaken for the betterment of the country. The introduction of the E-Way billing system is one such initiative under the GST regime.
Earlier, the states were required to have their own separate e-way billing systems under VAT regime. This was causing a lot of difficulty in inter-state movement of goods. It became a necessity to have an e-way billing system which is applicable to the whole of India. With the introduction of e-way billing system under GST, the country will have universal laws for the transit of goods from one state to another. The e-way bill is made applicable from April 1 to the whole of India.
Rolling-out of the intra-state e-way billing system
The GST Council has decided to introduce e-way billing system for transportation of goods within the states from April 15 this year. The procedure for the intra-state movement of goods is same as the inter-state movement of goods. So far, 12 stated have been covered under this intra-state billing system. The states of Madhya Pradesh, Arunachal Pradesh, Sikkim and Meghalaya and the Union Territory of Puducherry have rolled out an intra-state e-way bill from April 25 this year.
What is an E-Way Bill?
E-Way bill is an electronic document required for the movement of goods within and outside the states under GST regime. The bill is fundamentally a compliance mechanism with a digital interface in which a person is required to furnish the relevant information regarding the consignment of goods prior to their movement on the GST portal. The interstate and intra-state transportation of goods in a vehicle will only be permitted after the generation of the e-way bill.
Purpose of the E-way Bill
E-Way bill is introduced to monitor the movement of goods within the Indian states and to keep a check on tax evasion.
When to generate it?
The generation of the e-way bill is compulsory when the value of goods being transported is more than Rs. 50,000/- subject to certain provisions. The transporters are not required to generate the bill if the value of a single invoice is less than Rs. 50,000/- or if the value of all the consignments put together is more than Rs. 50,000/-.
In case of goods being transported by the principal to the job-worker in another state, the bill should be generated by the principal irrespective of the amount of the consignment. Similarly, the transportation of handcrafted goods from one state to another by a person, who is exempted from obtaining registration, is also required to generate this bill even if the value of his consignment is less than Rs. 50,000/-.
Applicability of the e-way billing system
All persons are required to generate this e-way bill whether they are registered, unregistered or the transporter of goods if the value of goods being transported exceeds Rs. 50,000/-. It is mandatory for the consignor, consignee or the transporter to generate this bill whose vehicle is used for transportation of the goods from place to another. When neither the consignor nor the consignee has generated this bill, then it becomes the duty of the transporter to generate it.
Procedure for its generation
The e-way bill form, GST EWB-01 is divided into two parts – Part A is to filled by the supplier or the recipient of goods of value more than Rs. 50,000/- and Part B is filled by the transporter of goods. Where the goods are transported by the supplier or the recipient himself, then Part B is required to be filled to generate E-way bill on the GST portal.
When the goods are handed over to the transporter by the registered person for transiting the goods, the registered person will furnish the details of the transporter in Part B of the form on the common portal. The e-way bill will be generated by the transporter on the basis of information filed by the registered person in Part A of the form.
The e-way bill number (EBN) will be generated by the generation of the e-way bill which will be available to the supplier, the recipient and the transporter on the common portal.
Some cases when it is not required
- When the value of goods consigned is less than Rs. 50,000/-.
- The means of transport is a non-motor vehicle.
- Transporation of Empty Cargo containers.
- Transit cargo transported to or from Nepal or Bhutan.
- Exempted goods from E-Way bill requirements in the respective State/Union territory GST Rules.
The validity of an e-way bill
The validity of an e-way bill begins immediately from the time of its creation. Up to 100 km, the validity of the bill is one day. Exceeding 100 km, the bill is valid for one additional day.
Cancellation of the e-way bill
The e-way bill can be cancelled within 24 hours of its generation if the goods are not transported as per details mentioned in the e-way bill. It can be cancelled directly or at a Facilitation Centre notified by the Commissioner. The SMS facility is also available to cancel the bills generated.
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