What is an e-Way bill?
An e-Way bill is a permit required for inter-state and intra-state transportation of goods worth more than Rs. 50,000. The document, which must be carried by the transporter at the time of transportation, is also called Form GST EWB-01. The e-Way bill will be made mandatory for inter-state supplies from April 1, 2018 and intra-state supplies from April 15, 2018.
For the states of Delhi (effective from June 16th), West Bengal (effective from June 6th) and Tamil Nadu (effective from June 2nd), e-Way bill is only required if goods worth more than Rs. 1 lakh are being transported.
For Delhi alone, an e-Way bill is not required for movement of goods from a registered business to an unregistered customer.
Who can generate an e-Way bill, and who is required to do so? What transactions require an e-Way bill?
Any registered person involved in transporting goods is allowed to generate an e-Way bill, but it is mandatory for those carrying goods worth more than Rs. 50,000.
There are two cases, however, in which an e-Way bill must be generated, regardless of the value of the consignment:
- When the goods are supplied by a principal to a job worker for an inter-state transaction.
- During an inter-state transfer of handicraft goods by a supplier who has been exempted from GST registration.
Does an e-Way bill need to be generated in the registered business location?
Some businesses do not have one single location where they operate. Therefore an e-Way bill does not necessarily need to be generated from their headquarters or main offices. Any convenient location is acceptable, as long as the proper address from which the transportation will take place is mentioned in the bill.
How is an e-Way bill generated?
An e-Way bill can be generated by a registered person through the following methods:
- Web-based system
- SMS-based facility
- Android app for generating and sharing e-Way bills (available only for taxpayers and enrolled transporters)
- Bulk generation
- Site-to-site integration
- GSP (Goods and Services Tax Suvidha Provider)
Why is an e-Way bill generated?
Section 68 of the Goods and Services Tax Act says that the Government may require a person in charge of conveyance of goods exceeding a value of Rs. 50,000 to possess an e-Way bill. Every e-Way bill generated by a consignee or consignor of goods is automatically updated in the outward sales returns (GSTR1) of the supplier. This saves tax officials time and leaves little room for tax evasions. e-Way bills also reduce paperwork and inter-state clearances for buyers, sellers and transporters.
When is an e-Way bill not required?
An e-Way bill is not required:
- If non-motorised conveyances such as railways are being used to transport goods. Although an e-Way bill is not required here, an invoice or a challan must be carried during transportation.
- If goods are shifted from a port, airport, air cargo complex or land customs station to an inland container depot or station for clearance by the Customs Department.
- If goods specified in Annexure to Rule 138(14) of the CGST Rules, 2017 are being moved.
What types of transactions require an e-Way bill?
All types of transactions which transport goods either as outward or inward supplies or for non-supply reasons, such as transporting for one’s individual use, require an e-Way bill.
What are the pre-requisites needed to generate an e-Way bill?
To generate an e-Way bill it is essential that the individual be registered in the e-Way Bill Portal. If they are not already registered, they must enrol themselves.
What documents must be carried along with the goods being transported?
The transporter must carry an invoice, bill of supply, or delivery challan and a transporter’s ID along with the goods they are moving.
They must also have a copy of the e-Way bill or the e-Way bill number (EBN), either as a physical paper copy or mapped to a Radio Frequency Identification Device (RFID).
Can I consolidate multiple invoices into one e-Way bill?
No, multiple invoices cannot be consolidated into one e-Way bill. You need to generate an e-Way bill for each invoice, irrespective of whether the goods have the same or different consigners and consignees. However, after generating the individual e-Way bills, you can consolidate them into a single document if the consignments are transported in the same vehicle.
How are goods with an e-Way bill inspected in transport?
An authorised officer may stop the vehicle and request to check the e-Way bill or e-Way bill number either on paper or through the Radio Frequency Identification Device(RFID).
What is the penalty for not having an e-Way bill?
A penalty of Rs. 10,000 or the equivalent amount of tax evaded, whichever has a larger value, must be paid by the concerned person if a consignment requiring an e-Way bill is found without one.
How can you verify the authenticity of an e-Way bill?
The authenticity of an e-Way bill can be verified by entering details such as the e-Way bill number, date, generator ID and document number in the search option of the e-Way bill portal.
How do I generate an e-Way bill if goods from one invoice are being moved by multiple vehicles simultaneously?
When goods of one invoice are being transported in several batches, a separate e-Way bill must be generated for each consignment based on its respective delivery challan details.
Also, the supplier must take care to issue:
- A complete invoice before dispatching the first consignment.
- A delivery challan for each consignment along with a certified copy of the invoice.
- The original copy of the invoice, to be sent along with the last consignment.
How do I generate e-Way bills for invoices which have different “Bill to” and “Ship to” addresses?
If the “Bill to” and “Ship to” addresses are under the same name, then one e-Way bill is sufficient for the entire transaction. If the addresses are under different names, then two e-Way bills must be generated: one with the “Bill to” party’s address as the place of delivery, and one with the “Ship to” party’s address.
REGISTRATION AND ENROLMENT
How do I register on the e-Way bill portal?
All registered taxpayers under GST must register on the e-Way bill portal using their GSTIN.
Once the GSTIN is entered, the system sends an OTP to the registered mobile number for authentication and asks to create an account and start generating an e-Way bill.
What is a Transporter ID and how do I enrol for it?
A TRANSIN or Transporter ID is a unique 15-digit number which is generated by the e-Way bill system for an unregistered transporter. It is based on the state code, PAN, and Check code and can be shared among other individuals who are part of the transaction. The Transporter ID can be used to identify an unregistered transporter and assign an e-Way bill to them, instead of the GSTIN which is used by registered transporters.
Transporters can enrol themselves here.
What does an e-Way bill contain?
An e-Way bill is split into two parts, A and B.
- Part A contains the GSTIN of the recipient, place of delivery, invoice/challan number, value of the goods, HSN code, transport document number and the reason for transportation.
- Part B contains details about the transporter, such as their vehicle number.
What is a Part-A slip?
A Part-A slip is an entry made by the user to temporarily store the document details on the e-Way bill system. This can be shared or used later to enter the Part B details and generate an e-Way bill.
Why is my system showing me the Part-A slip instead of generating my e-Way bill after I enter my details?
If details in Part B are left incomplete, the system will take you back to the Part-A slip. This is an indication that you still need to complete the e-Way billing process.
Is filling out the Part-B slip mandatory?
Yes, filling out the Part-B slip is mandatory to generate an e-Way bill. If you are not sure of the required details, you can temporarily fill out the Part-A slip, finish Part B later, and then go on to generate a bill. Part B details can be updated as many times as you want.
Why does the system show ‘Invalid Format’ while entering the vehicle number?
The system expects you to enter the vehicle number details in the proper format.
- The first two letters of the vehicle number, from the left, indicate the state to which it is registered.
- The next two numbers are the sequential numbers of the district.
- The final four-digit number is unique to each vehicle.
- These three parts are put together to make the vehicle number.
Must Part A and Part B be entered together?
Part A and B do not necessarily need to be filled out together, but all the required details of both must be entered to generate an e-Way bill.
What do I enter in the GSTIN column if I do not have one?
Enter ‘URP’ (for Unregistered Person) if you do not have a GSTIN (Goods and Service Tax Identification Number).
Is an e-Way bill required if a consumer is purchasing goods and handling the transport?
Yes, an e-Way bill is required to transport goods worth more than Rs. 50,000, regardless of the individuals and locations involved.
UPDATING AND EDITING
Can a transporter change the mode of conveyance during transportation? How?
Yes, a transporter can make use of different modes of conveyance during transportation, but the mode must be updated in the e-Way bill so that the mode of conveyance being used always matches the details given in the bill. This can be done by selecting the Updating Vehicle Number option in Part B.
What if I make a mistake in the e-Way bill? Can it be modified or edited?
Once an e-Way bill has been generated, it cannot be edited. Only Part B details can be updated, so take care to make all necessary modifications before submitting your details. However, if an e-Way bill has been generated with incorrect information, the entire bill may be cancelled and recreated. Note that cancellation must be done within 24 hours of generating the e-Way bill.
What if the system does not allow me to edit details before submission?
The system normally allows details to be edited before submission. Sometimes, if product details have been entered, the system will not allow you to edit certain fields as the tax rates may change. In order to make changes, delete the entered products and enter them again.
What is the validity period for an e-Way bill?
Validity of an e-Way bill depends on the distance travelled. It begins when the first entry in Part B is made. As Part B details can be edited at any time, the validity period is not re-calculated with subsequent entries made in Part B.
How long is an e-Way bill valid?
Validity is calculated based on the distance travelled. For distances less than 100 km, the e-Way bill is valid for one day from the date of generation, plus one extra day for every additional 100 km or fraction thereof.
For example, if a total of 310 km is travelled, then the validity lasts for 3+1=4 days.
What must be done if the bill has expired?
If the validity of the e-Way bill has expired, then the goods are not to be moved. Either a fresh bill with all new details must be generated, or another bill can be made with the expired e-Way bill number and new Part B details.
CANCELLING AND REJECTING e-WAY BILLS
What happens when an e-Way bill is generated but the goods are not transported?
If an e-Way bill is generated but the goods have not been transported, then the bill can be cancelled. Note that once the bill is generated, it may be cancelled citing valid reasons, but cannot be deleted.
What happens if the recipient does not want the goods delivered?
The recipients can reject the goods if they can provide a valid reason. For example, if the details of the recipient in the e-Way bill is entered incorrectly, then they can reject it. If an e-Way bill has not been rejected within 72 hours of its creation, then it is considered to be accepted.
Is a recipient notified about e-Way bills generated on their GSTIN by another party?
If the recipient has enabled SMS notifications, they will receive a message notifying them when an e-Way bill is generated on their GSTIN. If they have not enabled SMS notifications, they can find out about e-Way bills generated on their GSTIN by logging in to their account in the system.
CONSOLIDATED e-WAY BILLING
What is a consolidated e-Way bill or Form GST EWB-02?
A consolidated e-Way bill is a single document that contains all the e-Way bills created for multiple consignments being carried by one conveyance or goods vehicle. This feature permits the transporter to carry one document for the entire set of goods being transported. It is officially called Form GST EWB-02.
How is a Consolidated e-Way Bill generated?
To generate a consolidated e-Way bill for the movement of multiple consignments in one vehicle, the transporter logs in to the system, navigates to the Consolidated e-Way Bill tab, and selects the Generate New option.
How long is the consolidated e-Way bill valid?
A consolidated e-Way bill does not have a validity period on its own as it is made up of individual bills. Each bill has its own validity period.
Can I change the vehicle number for a consolidated e-Way bill?
Yes, you can change the vehicle number of your existing EWB without having to generate a new bill from scratch. Navigate to the Consolidated EWB menu and select the Regenerate CEWB tab.
Can a CEWB contain goods for multiple destinations?
Yes, a consolidated e-Way bill can contain goods which are to be delivered on the way to the final destination. Each destination’s goods must still have their own individual e-Way bill.
What are masters? Why are they required by the e-Way portal?
A master is a report of all the products, clients, suppliers and transporters frequently dealt with by a user. A separate master can be created for each heading individually.
To generate an e-Way bill, the system asks for information such as customer details and product specifications. Typing this information every time you generate an e-Way bill can become very tedious, which is why masters were introduced.
How do I create a master?
Once you log in to your account, click My Masters. This will show you a list of the different types of masters you can create: products, clients, suppliers and transporters. Select one, fill in the details and click Submit.
BULK GENERATION FACILITY
What is the bulk generation facility on the e-Way bill portal?
When large businesses have many consignments on the same day, it’s easier to generate all the required e-Way bills in one go instead of individually. The bulk generation facility makes this possible.
What are the prerequisites for bulk generation?
In order to make use of the bulk generation facility, users must be registered on the portal, have an invoice/bill/challan related to consignment of all goods, and have a transporter ID or vehicle number.
How do I generate a bulk e-Way bill?
After you have logged into the system, navigate to the e-Way Bill tab and select the Generate Bulk option. This will take you to the Upload and Generate screen. Upload the required JSON file for the system to process the data.
What is a bulk consolidated e-Way bill?
The bulk consolidated feature of the e-Way bill system allows the user to create multiple consolidated e-Way bills in one go. It can be accessed under the Consolidated e-Way Bill tab, by selecting the Generate Bulk option.
What are sub-users and why are they needed?
Most businesses have several branches, which makes generating e-Way bills with a single login potentially problematic. This issue was resolved by introducing sub-users. Once created, a sub-user can use the initial login credentials, but their access is limited to the actions that the original user has allowed them.
How do I create a sub-user?
On the left side of the Dashboard, navigate to the User Management tab and click the Create Sub-User option. The system will send an OTP to your registered email or phone number for validation. This will take you to the User Creation screen. Enter the details and click Submit to create a sub-user.