All about E-way bill rules in GST

All about E-way bill rules in GST

What is E-way Bill?

E-way bill is an electronic bill which is required to be created in case of movement of goods where the value of supply of goods is more than Rs. 50,000/-. E-way bill can be generated through GSTN portal electronically. During the pre-GST era, dealers have to present waybill physically for movement of goods which now in GST era will be streamlined online process.  Recently GST Council in its meeting on 5th July – 2017 finalised E-way bill rules, GST Council said that E-way rules are likely to come in to force from 1st October – 2017.

Every registered person is required to generate E-way bill when he transports goods of value more than Rs 50,000/-.

Also Read: All about Composition scheme in GST

Who has to upload the E-way file?

Every registered person causes movement of goods of consignment value of more than Rs 50,000/-

  1. In relation to supply; or
  2. For reasons other than supply; or
  3. Due to inward supply from unregistered person
WhoWhenFormPart
Registered PersonBefore movement of goodsGST INS-1 Part A
Registered Person is consignee or consignor (mode of transport may be owned or hired) or is recipient of goods Before movement of goodsGST INS -1Part B
Registered Person is a consigner or consignee and goods are handed over to transporter Before movement of goodsGST INS -1Part A by transporter&
Part B by Registered person.
Transporter of goods Before movement of goodsGST INS-1
Recipient of goods When goods are send by unregistered person to registered person GST INS-1

E-way bill for the value less than Rs 50,000/- can be generated at the option of Registered Person or Transporter.

After generating E-way bill on Common Portal a unique number (EBN) shall be made available to all three i.e. the supplier, transporter and recipient of goods.

 



 What is supply?

In case of e-way bill supply means

  1. Supply for a consideration in course of business; or
  2. Supply for a consideration not in course of business; or
  3. Supply without consideration

Where consideration means payment in money or kind or any other way like exchange or barter, etc.

E-way bill for Transporter

As said above transporter is also need to generate E-way bill in case where total value of goods transported through his vehicle exceeds Rs 50,000/- in Form GST INS – 1

But in the case of multiple consignments in one trip the transporter shall mention all e-way bill serial number on the common portal of GST and should also generate an consolidate e-way bill in Form GST INS-2. (If transporter is transporting goods of such person/persons whose value does not exceed Rs 50,000/- and e-way bill for the same has not been generated then in such case the transporter should first generate e-way bill for it in Form GST INS-1 on the basis of delivery challan or copy of bill/invoice and then generate consolidate e-way bill in GST INS-2.)

After goods are transported to their destination transport shall after such movement of goods generate the e-way bill in Form GST INS-1 to specify the mode of transport.

The transporter must carry the copy of e-way bill and Tax Invoice or Delivery Challan as the case may be.

What if consignment is stopped due to any reason

Where a vehicle has been intercepted or detained for any reason for the period more than 30 minutes, the transporter may upload the said information in Form GST INS-4 on the common portal.

Can the e-way bill be cancelled?

An e-way bill can also be cancelled electronically on the common portal of GST either directly or through a facilitation centre notified by Commissioner but within 24 hours of its generation.

If it has been verified in transit or transporter has updated on the common portal of GST the movement of goods in Form GST INS-1 then such e-way bill cannot be cancelled.

The recipient of can reject the consignment covered by e-way on the common portal but if he fails to reject the e-way bill within 72 hours of its generation then it amount to acceptance of such bill on part of recipient.

 Validity of E-way bill?

An e-way bill or consolidate e-way bill is valid for the period mention below:-

Sr. NoDistanceValidity
1Less than 100 Kms1 Day
2More than 100 but less than 300 Kms3 Days
3More than 300 but less than 500 Kms5 Days
4More than 500 but less than 1000 Kms10 Days
51000 Kms or more15 Days

The Commissioner may, by notification, extend the period of the e-way bill for certain category of goods as specified therein.

Submission of Inspection and Verification Report by officer

An officer is required to upload the summary report in Part A of Form GST INS-3 within 24 hours of inspection and a detailed report in Part B of Form of GST INS 3 within 3 days of the Inspection. Inspection can only be done once i.e. if the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless specific information relating to evasion of tax is made available subsequently.

Documents required to be carried by transporter

  1. Invoice or bill of supply or delivery challan
  2. A copy of e-way bill or e-way bill number either physically or mapped with radio frequency identification device (RFID) embedded to the vehicle.

So this is all about E-way bill provision in GST. Should you have any query you may post the comment we will come back to you.

Article is also co-contributed by Taxadda.com

Source: E-way bill rules

Author: smit shah

I am a passionate Chartered Accountant having deep interest in taxation with combination of blogging.

2 thoughts on “All about E-way bill rules in GST”

  1. I am registered person and sending goods to my customer of invoice value is less than 50000 ( including GST). This parcle will be handled by a transporter who also carry some other goods of different persons and the value of their goods may be below and/or above 50k. In such case do I need to issue eway bill ( value of my good invoice is less than 50k).? Question 2: If I am sending goods to my another customer having value less than 50k in same vehicle, then do I need to issue Eway bill. ?

    1. E way bill criteria is to be checked for each invoice, if every invoice has value less than Rs. 50,000 then E way bill is not required to be issued. In such case transporter is also not required to generate E way bill. However it is expected that suitable that suitable clarification will be issued.

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