GST EWay Bill is a new methodology for tracking of goods in transit introduced under the Goods and Services Tax. Any taxable person registered under GST and causing movement of goods of consignment with a value of over Rs.50,000 is required to generate a GST EWay Bill from the GST Common Portal. In this article we look at all aspects of a GST EWay Bill in India.
GST EWay Bill is a document issued under the GST Act for any transfer of goods of consignment with a value of over Rs.50,000. Any person having a GST registration and causing movement of goods of consignment for any of the following reasons is required to generate a GST EWay Bill:
In relation to a supply; or
If a taxable person under GST supplies any goods and the value of the consignment is over Rs.50,000, a GST EWay Bill would have to be generated.
Reasons other than supply;
If a taxable person under GST transfers goods located in one godown to another and the value of the consignment is over Rs.50,000, a GST EWay Bill need to be generated.
Due to inward supply from an unregistered person.
If a taxable person under GST purchases any goods from an unregistered person under GST and the value of the consignment is over Rs.50,000 a GST EWay Bill should be generated.
Who can Generate GST E-Way Bill?
GST EWay Bill can be generated by a taxable person registered under GST or a transporter or a person not registered under GST using the GST Common Portal.
If a taxable person is registered under GST wants to transport goods using own vehicle or hired vehicle as a supplier or to be received in the course of business as a recipient, the taxable person can generate a EWay Bill in Form GST INS-1 electronically on the GST Common Portal by providing information requested in Part B of FORM GST INS-01.
If a transporter is involved in the transfer of Goods, then the taxable person registered under GST must furnish information about the consignment in Part B of FORM GST INS-01 on the GST Common Portal. Using this information, the transporter would then generate a EWay Bill on the basis of the information provided by the taxable person in Part A of FORM GST INS-01. Transporters are allowed to generate and carry E-Way bill even if the value of the consignment is less than Rs.50,000.
Finally, any unregistered person transferring goods to a taxable person under GST can also generate e-way bill in FORM GST INS-01 on the GST Common Portal.
GST EWay Bill can be generated on the GST Common Portal by a taxable person registered under GST or an unregistered person or a transporter. On submission of the necessary documents on the GST Common Portal in FORM GST INS-01, a unique e-way bill number (EBN) would be provided to the supplier, the recipient and the transporter.
Any registered taxable person would be intimated about the issue of a GST E-Way Bill or EBN on the common portal. The registered taxable person would have the option to accept or reject the consignment covered by the e-way bill. If a taxable person registered under GST does not communicate acceptance or rejection within 3 days of the details being made available on the GST Common Portal, then the GST E-Way Bill would be considered as accepted. Finally, all accepted GST EWay Bill would be reconciled automatically on GSTR-1 during the filing of monthly GST Returns.
If an unregistered person generated a GST EWay Bill, then the status of the E-Way Bill would be updated to the registered mobile number or email of the unregistered person.
The validity of a GST EWay bill is dependent on the distance the goods have to be transporters. For example, a GST e-way bill generated for transportation of goods for less than 100 kilometers are valid for a period of 1 day. The following table shows the validity of GST bills along with the distance mentioned on the GST e-way bill.
Once a GST E-Way Bill is generated but goods were not transported or are not being transported, then the GST e-way bill can be cancelled through the GST portal or through a GST Facilitation Centre within 24 hours of generation of the e-way bill.
The tracking of movement and storage of goods is key to reduce tax revenue leakage for the Government and reducing black-market products. Hence, registration under GST has been made mandatory for all transporters, godowns and warehouses. To track goods in transit, the GST e-way bill mechanism has been introduced by the Government. Thus, any transporter transferring goods is required to generate a new e-way bill on the common portal in FORM GST INS-01 specifying details and mode of transport.
In addition to the GST E-Way Bill, a person in-charge of conveyance of goods is required to carry the following documents for inspection by authorities at any time:
Invoice or bill of supply or delivery challan and invoice reference number from the GST common portal, obtained by uploading a copy of the GST tax invoice issued in FORM GST INV-1.
Copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the vehicle. in such manner as may be notified by the Commissioner.
The Draft GST E-Way Bill Rules has been notified by the Government. However, the final rules have not been notified. The GST E-way Bill and mechanism for generation of e-way bill on the GST common portal is expected to be available shortly.