You all have most likely heard of the E-Way bill. But do you truly understand what it implies? Or why is it significant? Additionally, E-way bills have also undergone some recent adjustments by the government.
We will cover all you need to know about E-Way bills, including the new notion of bill blocking and unblocking.
It is self-evident that E-way bills assist us in properly understanding the movement of commodities in each state and help prevent tax evasion. It is a crucial document that allows products to be transported from one location to another.
What Are E-Way Bills?
The Electronic Way Bill is a generating process in which the person moving goods submits required information and data via a digital interface before the start of goods and generates an e-way bill on the GST platform. In simple words, an e-way bill is an invoice or report issued by a carrier that includes specifications and instructions for shipping a consignment of goods.
The features include the consignor’s name, consignee, consignment or shipment’s place of entry, intent, and direction. The e-way bill is a method for tracking inventory movement and detecting tax fraud, as well as a process for checking that the goods are being moved to comply with the GST Law.
E-Way Bills: When Is It Generated?
Once the products are sent or dispatched, an e-way bill must be created, including information about the commodities, their consignor, recipient, and transporter. For the following items, an e-way bill is generated online:
- Provisioning of products.
- When there is a chance to return.
- In the case of an unregistered person supplying products into the country.
- Non-supply transactions such as export/import, product return, job labor, line sales, permission sales, partially or knocked down supply, supply of items for exhibition or fair, and goods used for personal use are all examples of non-supply transactions.
Who Can Generate E-Way Bills?
- Registered Individuals: An E-way bill must be issued when there is a transportation of items valued at more than Rs 50,000 to or from a verified individual. A certified individual or carrier may opt to produce and hold an E-way bill even if the worth of the commodities is below Rs 50,000.
- Unregistered Individuals: Those who are not yet registered must additionally create an e-Way Bill. When an unregistered person delivers to a registered person, the receiver is responsible for ensuring that all compliance requirements are completed as if they were the supplier.
- Transporter: If the supplier has not generated an e-Way Bill, transporters transporting products by road, air, rail, and other modes of transportation must also generate an e-Way Bill.
How To Generate E-Way Bills?
There are two sections to an e-way bill:
- Part A must be completed by the individual who is causing the movement of items worth more than Rs. 50,000.
- Part B must be completed by the person conveying the items.
When items are carried by a registered person, whether as supplier or recipient, that person must generate an e-way bill by filling out part B of the GST Common Interface for the E-way Bill System.
When the products are transported to the transporter for road transportation and the e-way bill is not generated by the registered person:
- The registered person must provide the transporter’s specifics in Part B of FORM GST EWB-01 on the GST Common Gateway for the e-way bill system.
- And the transporter must generate the e-way bill on the said gateway using the data supplied by the registered user in Part A of FORM GST EWB-01.
Instead of the tax invoice, an enrolled individual can acquire an Invoice Reference Number from the public site by entering a tax invoice provided by them in FORM GST INV-1 on the portal and providing it for confirmation by the proper authority. The number will be valid for thirty days from the date of uploading.
Because the data supplied in FORM GST INV-1 will be auto-populated by the common gateway, the registered individual will not be expected to enter the data in Part A of FORM GST EWB-01 to compile an e-way bill.
If the receiver is enrolled on the common portal, the data from the created e-way bill will be made accessible to him, and he will be able to determine whether he accepts or rejects the shipment authorized by the e-way bill.
It will be assumed that the receiver has accepted the details if they don’t signal their acceptance or rejection within 72 hours of the details being made available to them on the common portal.
E-Way Bills: Blocking And Unblocking
The Indian government recently made a significant adjustment to its E-way bill generation method on its webpage. It disables the service for taxpayers who have not filed payments of their tax returns in the previous two months.
You will not be eligible to produce your E-way bill if you fail to file your tax returns for two or more months in a row. This prevents the transfer of consignments that require products to be transported from one location to another. It also brings the situation to a halt.
When you file your GSTR-3B, the E-way charge is automatically unlocked. You can also produce an E-way bill the next day. The government made this adjustment to identify tax evaders and force them to comply with the law.
The government was prompted to take such measures due to a recent spike in the number of tax defaulters.
What Does It Mean When Someone Says E-Way Bill Is Blocked?
If your E-way bill is banned, you will encounter one of the two scenarios below:
- You get a window every time you try to produce an E-way bill, telling you that it has been prohibited.
- If a taxpayer enters the same GSTIN as another party, the other party will also receive a notification.
How To Unblock E-Way Bills?
The best option to get your E-way bill unblocked is to complete all of your GST returns. If you want to produce an E-way bill right after filing your returns, follow the instructions below:
- Go to the main website of E-Way Bill.
- Click on the update unblocks status option in the drop-down menu list.
- Enter your GSTIN.
- Then solve the puzzle code and click go.
- To use the GST common site, go to www.gst.gov. From the drop-down list, pick “update unblocks status.” This will bring up information about your most recent filing.
You can even contact the GSTIN help desk for other queries.
We all know that many firms have sprouted up in the modern era. And the process is still ongoing. To assist these businesses in growing, the government has enacted additional rules and regulations.
Udyog aadhar, which gives loans to small businesses, and E-way bill, which keeps track of a company’s transportation, are two of the government’s major initiatives.
Capital is required to establish a business. Some people can simply get a loan using platforms such as ziploan, which offers loans to businesses. However, there are small businesses that can benefit from the Udyog aadhar.
Then we all know Waybills are not a new concept. It was common in most states during the previous VAT regime in the guise of a road permit, a waybill, and so on.
It was used to track the movement of products into and out of a country to prevent tax evasion. A waybill is usually necessary when items are transported from consignor to consignee.
Previously, state-specific laws applied to waybills, and they had to be generated through several state-specific portals. E-way bills are governed by a standard set of rules that apply across the country under GST. The e-way bill site generates it online. It has its own merits; hence people must adhere to the rules of E-way bills.
Frequently Asked Questions
Visit the EWB portal and choose the option ‘Search Update Block Status’. Enter the GSTIN, CAPTCHA Code, and click on ‘Go’. Click on ‘Update Unblock Status from GST Common Portal’; this will reflect the recent filing status.
Your e-way Bill generation facility would be automatically unblocked on the e-way bill portal if you file your GSTR-3B return/statement in FORM CMP-08 and the default in return filing is reduced to less than two tax periods.
If there is a mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected. The only option is the cancellation of e-way bill and generating a new one with correct details.
However, if the status is not updated in the e-way bill system, then the taxpayer can do it immediately by going to the e-Waybill portal and clicking on the option Search-> Update Block Status. Enter the GSTIN, followed by the CAPTCHA, and click on GO.
Click on Menu->Click on GST-> Select E-Way Bill -> Click on “View E-Way Bill Blocking History”. 2. On clicking “View E-Way Bill Blocking History”, the “E-Way Bill Blocking History” page will be displayed.