What’s Eway Bill? Rules and Generation Process.
Latest Update as of 22nd December 2020
1. For determining validity, the CBIC increased the daily distance for goods transporting through vehicles.
It is one day. – A distance of up 200 km, as opposed to the 100 km earlier
b. An additional day is taken for every 200 km or portion thereof.
2. The provision regarding blocking the e-way bill if a taxpayer fails file GSTR-3B has been changed to replace two or three months with two or multiple tax periods. This has been amended to include quarterly return filers.
Last update on 29th August 2021
The taxpayers won’t be blocked from 1st May 2021 until 18th August 2021 by e-way bills. These bills will prevent them from filing GSTR-1 and GSTR-3B non-filings (two months or longer for monthly filers, one quarter or more QRMP taxpayers) between March 2021 and May 2021.
Updated as of 4th August 2021
Non-filing GSTR-3B will result in the resumption of e-way bill blocking. This will begin on 15th August 2021.
Updated as of 16th November 2020
1. Rule 138E (a and b) of CGST Rules 2017, restricts the taxpayer’s ability to generate an e-way bill (EWB), if they fail to file Form GSTR-3B returns / form GST CMP-08 statements for more than two tax periods.
2. The system will verify the status of Form GSTR-3B returns and Form GST CMP-8 statements for the taxpayers it applies to, and limit the generation of EWB in the case of:
a. Non-filing two or more returns on Form GSTR-3B in the months leading up to October 2020.
b. Non-filing two or more statements in Form GSM CMP-08 for quarters July through September 2020
3. Blocking EWB generation facilities will be applied to all taxpayers starting 1 December 2020, regardless of their Aggregate Annual Turner (AATO) according to Rule 138E (a and (b) of CGST Rules 2017.
4. The blocking will occur periodically starting at 1 December 2020.
5. Taxpayers are encouraged to immediately file their GSTR-3B returns/GST-CMP-08 statements in order to continue generating EWB via the EWB Portal.
VAHAN-e-Way Bill Integration
The VAHAN system has been connected to the e-way bill portal in February 2020. In the state of Karnataka, a pilot run has already started. The vehicle registration number will now be valid at the time of generating the e-way bill.
Blocking and unblocking the E-way Bill
- Taxpayers who have not filed returns in the past two quarters or months are unable to generate an E-way bill.
- If a taxpayer does not file GSTR-3B for more than two consecutive months, he/she will be unable to generate e-way bills to do dispatches or receive goods. This can lead to a standstill.
- Only after a taxpayer files GSTR-3B the e-way bills are unblocked the next day.
- The eway bill blocking system was in place since the 2nd December 2019.
All States must use e-way invoices for intra-state movement goods
- The requirement to have an E-way bill for intra-state movement of goods in Delhi started on 16 June 2018,.
- With effect from the 3rd of June 2018, E-way bills are mandatory for intra-state goods movement for all states, except Delhi
- For intra-state movement, Eway bills are required for Andaman & Nicobar and Chandigarh.
- Trial basis eway bills are available for intra-state goods movement for Odisha starting 23 May 2018
- Rollout of the e Way Bill system to allow intra-State movement in goods between States / Union Territory (Arunachal Pradesh), Madhya Pradesh and Meghalaya, Sikkim, Sikkim, Meghalaya and Puducherry starting 25 April 2018
Bill generation on EWay
- The latest update as of 26 September 2018: New enhancements have been made to the E-Way Bill (EWB), generation form, which will be released on October 1, 2018.
- Multi-vehicle updating is now possible with the e-way bill. Learn more
- In the case of “Bill To” & “Ship To”, consignor (seller), or consignee(buyer) can either generate an Eway bill.
1. What is an eWay Bill and how does it work?
EWay Bill refers to an Electronic Way bill that allows goods to move electronically. It can be generated via the eWay Bill Portal. GST registered persons cannot transport goods in vehicles with a value exceeding Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.
Alternativ, Eway bills can be created or cancelled. Through SMS Android App, and site-to-site integration via API
An eway bill (or eway bill) is generated. A unique Eway Bill Number is assigned and is available for the recipient, supplier, and transporter.
2.When should the eWay Bill go into effect?
When goods are moved in a vehicle/conveyance of more than Rs. 50,000, an eWay invoice will be generated. 50,000 for each invoice or the total of all invoices within a vehicle/conveyance.
- Referring to a “supply”
- Other than a supply (say, a return),
- Unregistered person supplies inward supply
A supply can be one of these:
- Supply made in exchange for consideration (payment) during the course of business
- Supply made in exchange for consideration (payment) that is not within the business’s normal course
- Supply without consideration (without payment). In simpler terms, the term “supply” usually refers to a:
- Sale – sale and payment
- Transfers to branches – for example
- Barter/Exchange: where payment is made in goods and not money
eWay bills must be generated via the same portal for all types of movements. The eway bill must be generated for certain goods, even if its value is less than Rs. 50,000:
- Inter-State Movement of Goods from the Principal to the Job Worker by Principal/registered Job-worker
- Inter-State Transport for Handicraft Goods by a which is Dealer exempted form GST registration
3. Who should generate an eWay bill?
- Registered Person An eway bill must be created when goods are moved more than Rs. 50,000 to or from a registered individual. Even if the goods are less than Rs. 50,000, a registered person or transporter can generate and carry an eway bill.
- Unregistered People – Unregistered people are also required to create e-Way Bill. Unregistered Persons – Unregistered persons are also required to generate a e-Way Bill.
- Transporter– Transporters that transport goods by road, air or rail. If the supplier has not created an eWay Bill, they will also need to generate one.
4. Cases where eWay bill does not apply
It is not necessary to generate eWay Bil in the following situations:
- Non-motor vehicle is the mode of transportation
- Goods are transported from Customs port to airport, air cargo complex, or land customs station, to Inland Container Depot or Container Freight Station (CFS), for clearance by Customs.
- Goods that are transported under Customs supervision and/or sealed by customs
- Goods transport under Customs Bond from ICD port to Customs port, or from one custom station and another
- Transit cargo to and from Nepal and Bhutan
- Movement of goods caused under Ministry of defence as a consignor/consignee
- Transport of empty Cargo Containers
- Consignor transporting goods between places of business. A weighbridge is used for weight measurement at distances of 20 kms.
- Rail transport of goods where the Consignor is the Central Government, State Governments, or a local authority.
- Exempted goods from E-Way bill requirements according to the applicable State/Union territory GST Rules
- Transport of certain goods- This includes the Annexure to Rule 138, 14 and the list of exempt supplies of goods. It also includes goods that are not subject to Schedule III. ( PDF List of Goods
Notification: Part B of eWay Bill does not have to be completed if the distance between consignor or consignees and the transporter exceeds 50 kms, and the transport is within the same State.
5. Status of Implementation in India
Since its implementation on 1 April 2018, inter-State goods movement has seen a rise in the number of eway bills being generated. The state-wise implementation of eway bill system has been well received with all States and Union Territories joining in the generation of eway Bills for movement of goods within their State/UT. People of certain States have received reliefs by exempting themselves from the generation of eway bills in cases where monetary limits fall below certain threshold amounts or for specific items. Take, for example: Tamil Nadu If the item’s monetary limit is below Rs. 1, the State has exempted its citizens from the creation of an eway bill One Lakh Visit this page to learn more about reliefs available for other States/UTs. Websites for commercial tax Each of these States/UTs.
6. How to create an eWay bill
E-Way Bills can be generated via the e-Way Bill Portal. You only need a Portal login to access the e-Way Bill Portal. Our article outlines the steps involved in generating e-Way bills. How to create an e-Way Bill online .
7. Validity of the eWay bill
An e-way bill can be valid for the following periods. It is calculated based on distance traveled by the goods. The date and time at which the e-way bill was generated is when validity is determined.Eway bills can also be extended indefinitely. Eway bills can be extended by the generator within either four hours or four hours following expiry. Validity .
8. Documents and details required to generate an eWay bill
- Consignment of goods: Invoice/Bill of Supply/Challan
- Transport by road – Transporter ID oder Vehicle number
- Transport by rail, air or ship – Transporter ID. Transport document number. Date on document.
9. Most Frequently Asked Questions
What are the responsibilities and liabilities of the transporter under the E-Way bill system ?
Transporters transporting goods by rail, road, or air. If the supplier has not created an e Way Bill, they will need to generate one. The information provided by suppliers/ consignors about the Invoice/challan will be used to generate an e-way bill. For more information, refer to our article Compliance on eWay Bills By Transporter’. If the transporter fails to generate the bill in the above circumstances, he could face a penalty of Rs 10,000, or tax sought to avoid (wherever applicable), and may also be liable for the confiscation of goods as well as the seizure of the vehicle.
How many eway bills must be generated in order to ship a shipment to a customer that involves multiple transporters (with different Transporter IDs)? Since the end customer is one, how will one invoice-one electronic way bill validation be achieved?.
A single e-Way invoice must be generated for the Invoice. “Transshipment” is the name of this situation. Another transporter can be re-assigned by the transporter ID update on the eway bill portal. The seller cannot change the transporter that the transporter has re-assigned. The user must generate delivery challans for each invoice that are based on a different Transporter ID. This is because it is impossible to create multiple e-way bills for one invoice and can also lead to problems in filling the GSTR-1.
What criteria are used to determine the “Value Consignment of Goods?
The following is how the value of consignment goods” is to be interpreted:
1. Invoice Value* exceeds Rs. 50,000/-
2. When goods are transported by a vehicle against multiple invoices, the total Invoice value* of all Invoices must exceed Rs. 50,000.
If either of the above points are met, the user should generate an e-Way Bill. *Invoice value is the transaction value, minus the Value of exempt items that are being transported along with the taxable goods.
If the daily shipment value exceeds Rs 50,000, is an e-Way invoice required? How can multiple invoices be taken under one e-way bill?
It depends on whether the supplier is the transporter. If the supplier is the transporter, he must generate the eway bill for all invoices. If not, the transporter will need to generate the bill against all invoices in the vehicle.
How do the terms “CKD/SKD” and “line sales” refer to selection of subtypes in cases of outward supply?
CKD/SKD” refers to the movement of goods in Completely Knocked Down or Semi Knocked down condition. For example, Fan movement in various parts that will be assembled later. “Line Sales” Vertical sales made from one unit / department/division of an organisation to another unit/department/division next in production line within that Organisation.
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