The provision of Eway bill generation has come into active effect from June 2018, in order to facilitate transactions within a state and from state to state. An E-way bill is a document that a person in charge of conveyance of goods has to carry with the consignment. This document is mandated by the Goods and Services Tax Act. Before the movement of a consignment of goods, an E-way bill must be generated. There are things related to an E-way bill, you must know about, especially if you are an entrepreneur involved in transporting consignments (receiving/sending) within your state or outside of it. Here are 6 important things you should be informed about.
When should you generate an E-way bill?
When any movement of goods/consignment worth more than Rs. 50,000 takes place, an E-way bill must be generated. Note the following aspects related to generation:
- Bill generation is done for supply of goods
- Bill generation is done for inward supply
- Bill generation is done for interstate transportation of goods less than Rs. 50,000 from the principal to a job worker and vice versa
- Bill generation is done for interstate transportation of handicraft goods of dealers exempt from GST registration
Parts of an E-way Bill
There are two sections of an E Way Bill Form – GST EWB 01. There are two parts, A and B:
- Part A of EWB Form – This part has important details of the consignee and consignor, such as information about the GSTIN of the recipient, the PIN Code of the delivery location, invoice/challan number and date, goods’ value, reasons for transportation of goods, etc.
- Part B of EWB Form – This contains details about the transport vehicle like the vehicle number.
E-way Bill Generation: Who can generate it?
Sourced from the E-way Bill System, E-way bill generation is done by the consignee or consignor, a registered taxpayer with a GSTIN. This is done in cases when the vehicle is owned or hired by the consignee/consignor, or goods are transported by rail, air or water vessel. In a transporter’s own vehicle, where goods go by road, the transporter generates the EWB. A unique EWB number is assigned through EWB generation.
Validity of E-way Bill
Depending on the distance of transportation of goods and the vehicle used for transportation, the validity is decided. For instance, up to 200 km, in a regular vehicle, the validity is one day.
Can validity be extended?
Yes, it can. When reasons for consignments being delayed are unforeseen, for example, due to natural calamities, issues of law and order, etc, validity is extendable.
E-way Bill Modification/Cancellation
E-way bills, once generated, cannot be altered, but vehicle details may be updated in Part B. In case the EWB is generated with wrong details, it may be cancelled and a fresh one made.
The Last Say
E-way bill generation is an important and compulsory aspect of the transportation of goods, and you can learn more about it on Finserv MARKETS.