The digitization process is no longer limited to private businesses; the government is also steadily digitizing its processes. The E-way bill is one example of the government’s efforts to assist various companies with a GST registration engaged in transportation services.
You cannot simply move goods from one location to another or even beyond a state’s borders without first obtaining a permit. To transport your products, you must first get government approval.
This kind of permission is known as the e-way bill. The E-way bill gets created digitally to ensure that you do not get into trouble while transporting goods from one place to another.
What is meant by an e-way bill?
An e-way bill is a certificate issued by the party transporting goods containing information about the type of products being shipped, the carrier and the receiver of the shipment, the origin, and the journey’s destination.
If the cost of the product exceeds Rs. 50,000, a GST certificate holder cannot transport them without an e-way bill, according to GST rules. The e-way bill portal is where e-way invoices get prepared.
There are two parts to every e-way invoice. Part A contains all of the details and a few others, such as the receiver’s GSTIN, invoice, an approximate estimate of the value of the goods getting shipped, HSN code, Airway bill number, and the reason for transporting the said goods.
Part B contains information about the vehicle used to transport the shipment.
What are the benefits of e- waybills?
The primary goal of e-way bills is to make the conventional VAT-based billing system more efficient. The introduction of GST, which is a centralized structure, brings uniformity and eliminates any bottlenecks that existed previously at checkpoints.
An e-way bill must be generated by anyone transporting a shipment worth more than Rs. 50,000. Also, this e-way bill ensures that all goods transported comply with GST regulations and that no party avoids paying taxes to the state government.
How to create an e-way bill?
There are a few requirements for anyone who wants to make an e-way bill:
- It is necessary to register on the EWB portal.
- The shipment’s invoice should be readily available. A bill or challan can also be used in this situation.
- Documents related to the registration of the vehicle used for commuting must be present.
- If the delivery gets shipped by rail or air, the Carrier ID, Transfer Document Index, and date on the document must all be present.
Given below are the steps to generate an e-way bill:
- Use your login information in the E-Way Bill Portal.
- When you select “Generate new,” a new generation registration form will appear on the main screen.
- If you’re a supplier, change the translation type to Outward. If you’re the receiver, change the translation type to Inward and fill in the supplier and recipient information, as well as the GSTIN, if applicable. After providing a GSTIN number, some of the fields will be auto-populated.
- The product name and description fields must get filled out entirely and correctly, just as they are on your tax invoice. After that, enter the HSN code specified for the product. Enter the applied CGST/IGST rates. Inter-state transportation will be subject to the IGST, while intra-state shipment will get subjected to the SGST/CGST.
- To generate the bill- click on the submit button. The E-way bill will appear, with the E-way bill number and a QR code containing all the information. Moreover, print a copy of the e-way bill, and give it to the transporter, who will carry it throughout the journey until the receiver receives it. Also, download the GST certificate and attach it with the bill for a more secure transaction.
Under what circumstances must an e-way bill get generated?
When the price of the goods getting shipped exceeds Rs. 50,000, an e-way bill is generated in most cases.
- If the transport of goods/shipment is done on their delivery truck or through contracted vehicles, the sender, recipient, or transporter should create an e-way bill.
- Any unregistered individual who sends a shipment of goods to a GST registered individual. However, because the sender might not get authorized under GST, it is the responsibility of the registered recipient to initiate the e-way bill.
- If neither the transmitter nor the receiver generates an e-way bill, the transporter must do so. It is only possible when the delivery is getting transported by road.
Situations in which you do not need an eWay bill
The consignee, consignor, or carrier is exempted from producing an e-way bill if and only if the following conditions get met:
- The delivery is worth less than Rs. 50,000.
- When the products transported are exempted from GST. For example, farm animals, ground beef, fruits and vegetables, seedlings, milk products, organic tea leaves and coffee grounds, unprocessed wheat, unrefined rice, unbranded rice, educational materials such as books and stationery.
- When the transportation takes place through the other modes of transport. For instance: bullock carts, horse carts, and hand-pulled carts.
- Goods get transported by rail where the transmitter is the Central Government, a state legislature, or a local government.
- When goods get moved from one customs clearance depot to another, another exemption maybe when empty containers getting transported.
Consequences when failed to provide an e-way bill
E-way bills get employed by the government to ensure that all transferred goods get accurately accounted for and that the taxes associated with them are paid correctly by the taxpayers.
Also, if you transport goods without e-way bills, the goods may get seized, and the tax department may levy penalties.
Moreover, when goods are transported without an e-way bill, the penalty imposed is greater than the tax amount tried to be evaded or a flat fine of Rs. 10,000 is levied.
Now that you understand the importance of an e-way bill and how to generate it, you can take further actions for your business expansion. Also, if you are looking for a loan for MSME to carry out and expand your operations seamlessly, ZipLoan can be a great help.
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Frequently Asked Questions
Visit E-way bill portal (https://ewaybillgst.gov.in/) >> Fill login credentials >> Go the Reports tab >> Download E-way bills from My E-way bill Report.
The consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients.
Here are the steps to generate multiple e way bills:
Step 1- Go to Menu and select ‘Change to multiple E-way bill’ option. Enter E-way bill number for which multiple vehicle details is required and click ‘Go’.
Step 2: In this section, create group to enter details of transportation- destination and select mode whether is by road, rail, air or ship.
There are two types of e way bill:
1) Normal E Way Bill :- Normal E Way bill shall be generated when there is transportation of goods having one type of HSN.
2) Bulk E Way Bill :- When there is transportation of multiple variety of Goods having multiple HSN code the bulk E Way bill shall be generated.
Normally, E-way bill is generated by the Registered Person but, there is an option on E-way Bill system where even a person who does not have GST No.
Penalty for e-way bill non-generation is minimum Rs. 10,000. There are also provisions for confiscating the vehicle and the goods unless the tax or the penalty is paid. Non-generation of e-way bills should be avoided as it leads to legal-hassles and undue delay on part of supplies.
The person in charge of the vehicle should carry the following documents: Invoice, bill of supply, delivery challan as required.