E-way Bill System under GST Law in India: Understanding Requirements and Applicability
The introduction of the E-way Bill system in India under the Goods and Services Tax (GST) regime marked a significant shift in the way goods are transported across the country. This digital documentation system has streamlined the movement of goods while enhancing tax compliance. In this blog, we will explore the E-way Bill system under GST law in India, its requirements, and its applicability.
What is an E-way Bill?
An E-way Bill is an electronic document required for the movement of goods worth over a specified threshold under GST. It contains information about the consignment, the supplier, the recipient, and the vehicle used for transportation. The purpose of the E-way Bill is to ensure transparency in the movement of goods and prevent tax evasion.
Requirements for E-way Bill
The primary requirements for generating an E-way Bill include:
- GST Registration: You must be a registered taxpayer under GST to generate E-way Bills.
- Value Threshold: E-way Bills are required for the movement of goods with a value exceeding Rs. 50,000. This threshold applies to the total consignment value.
- Transportation Mode: E-way Bills are mandatory for goods transported by road, air, rail, or waterways, except for specific exempted categories.
- Applicability: E-way Bills are applicable not only to the supplier but also to the recipient and the transporter.
Applicability of E-way Bill
E-way Bills are applicable in various scenarios:
- Interstate and Intrastate Movement: E-way Bills are required for both interstate and intrastate movement of goods, except in some states that have exempted intrastate E-way Bills for goods below Rs. 50,000 in value.
- Supplies and Other Reasons: E-way Bills are generated for supplies, such as sales, purchases, job work, and exhibitions, as well as for reasons other than supply, such as return of goods, inward supply from an unregistered dealer, and more.
- Transport by Registered or Unregistered Transporter: Whether the transporter is registered or unregistered under GST, the responsibility of generating the E-way Bill lies with the supplier or the recipient, depending on the circumstances.
Generating an E-way Bill
To generate an E-way Bill, follow these steps:
- Visit the E-way Bill Portal: Go to the official E-way Bill portal (https://ewaybill.nic.in/).
- Login: Log in using your GSTIN.
- Fill the E-way Bill Form: Enter the relevant details, including the consignment value, supplier, recipient, and transporter information.
- Generate E-way Bill: After verifying the details, generate the E-way Bill and obtain a unique E-way Bill Number (EBN).
- Transportation: Hand over the E-way Bill to the transporter, who must carry it during the transportation of goods.
Validity of E-way Bill
The validity of an E-way Bill depends on the distance the goods are transported:
- Intrastate (within the state): Valid for one day for a distance up to 100 kilometers and an additional day for every 100 kilometers thereafter.
- Interstate (across states): Valid for one day for a distance up to 100 kilometers and an additional day for every 100 kilometers thereafter.
Conclusion
The E-way Bill system under GST law in India has transformed the way goods are transported and documented. It enhances tax compliance, reduces tax evasion, and ensures the smooth movement of goods across the country. Understanding the requirements and applicability of E-way Bills is crucial for businesses to remain GST-compliant and facilitate hassle-free transportation of goods. For the latest updates and detailed guidelines on the E-way Bill system, it is advisable to visit the official E-way Bill portal or consult with tax experts.