The Tax Heaven - Your Trusted Tax Consultants (2024)

The implementation of the Goods and Services Tax (GST) in India brought about several changes in the way businesses operate. One key requirement under the GST regime is the generation of an eWay Bill for the movement of goods. In this comprehensive guide, we will explore the concept of the eWay Bill, when and how it should be generated, who is responsible for its generation, and other important aspects of the eWay Bill system.

1. Introduction

What is an eWay Bill?

The eWay Bill is an electronic document required for the movement of goods under the GST regime. It is generated on the eWay Bill Portal and contains details such as the consignment's origin, destination, and value. The eWay Bill serves as evidence of the movement of goods and can be verified by tax authorities during transit.

Purpose of the eWay Bill

The primary purpose of the eWay Bill is to ensure seamless movement of goods within the country and prevent tax evasion. It enables tax authorities to track the movement of goods and verify their compliance with GST rules and regulations.

2. When to Generate an eWay Bill

Circ*mstances requiring eWay Bill generation

Under the GST regime, an eWay Bill must be generated in several circ*mstances, including:

1. When the value of the consignment exceeds Rs. 50,000.
2. When goods are transported for reasons other than supply, such as returns or inward supply from an unregistered person.
3. When goods are transported from one state to another.
4. When goods are transported by an unregistered person to a registered person.

Cases when eWay Bill is not required

While the eWay Bill is mandatory in most cases, there are certain scenarios where it is not required. These include:

1. When the mode of transport is non-motor vehicle.
2. When goods are transported under customs supervision or under customs seal.
3. When goods are transported within a state and the distance is less than 50 km.
4. When goods are transported by rail, air, or ship and the consignor is the government, a local authority, or a defense formation.

3. Who Should Generate an eWay Bill

Responsibilities of registered persons

Registered persons under the GST regime have the primary responsibility of generating eWay Bills. This includes:

• Registered suppliers or recipients of goods.
• Registered persons acting as consignor or consignee in a transaction.
• Registered persons handing over goods to a transporter.

Registered persons can generate eWay Bills through the eWay Bill Portal or through other authorized means, such as SMS or mobile apps.

Compliance for unregistered persons

Even unregistered persons may need to generate eWay Bills under certain circ*mstances. When an unregistered person supplies goods to a registered person, the registered person becomes responsible for generating the eWay Bill and ensuring compliance with the rules.

Transporter's role in eWay Bill generation

Transporters carrying goods are also responsible for eWay Bill generation in certain situations. If the supplier or recipient of goods has not generated an eWay Bill, the transporter must generate it based on the information provided by the supplier or recipient.

4. How to Generate an eWay Bill

Generation through the eWay Bill Portal

The eWay Bill can be generated through the official eWay Bill Portal by following these steps:

1. Log in to the eWay Bill Portal using your credentials.
2. Enter the required details such as the GSTIN of the supplier or recipient, invoice or challan number, and the value of goods.
3. Provide information about the mode of transport, vehicle number, and transport document number.
4. Validate and submit the details to generate the eWay Bill.
5. Once generated, the eWay Bill can be printed or downloaded for reference.

SMS eWay Bill generation

Alternatively, eWay Bills can also be generated through SMS using a registered mobile phone. By sending a specific SMS code to a designated number, users can generate, manage, and cancel eWay Bills. This method provides convenience for those who do not have access to the eWay Bill Portal.

5. Validity of an eWay Bill

Determining the validity period

The validity of an eWay Bill is determined based on the distance traveled by the goods. For distances within 200 km, the eWay Bill is valid for one day. An additional day is added for every additional 200 km or part thereof. For over-dimensional cargo, the validity is determined based on a distance of 20 km and an additional day for every additional 20 km or part thereof.

Extending the validity of an eWay Bill

If the goods have not been delivered within the validity period of the eWay Bill, its validity can be extended. The generator of the eWay Bill can extend its validity either eight hours before expiry or within eight hours after expiry. This provides flexibility for unforeseen delays in the delivery of goods.

6. Documents Required for eWay Bill Generation

To generate an eWay Bill, certain documents or details are necessary. These include:

1. Invoice, bill of supply, or challan related to the consignment of goods.
2. Transporter ID or vehicle number for road transport.
3. Transport documents, such as the transport document number and date, for rail, air, or ship transport.

These documents provide the necessary information to generate an accurate and valid eWay Bill.

7. State-wise eWay Bill Rules and Limits

While the eWay Bill system is implemented uniformly across India, each state may have specific rules and monetary thresholds for eWay Bill generation. Some states may exempt certain goods or transactions from the requirement of eWay Bills if their value falls below a specified threshold. It is important to be aware of these state-specific rules to ensure compliance with the eWay Bill regulations.

8. Recent Updates on eWay Bill

The eWay Bill system is subject to periodic updates and changes. It is crucial for businesses and transporters to stay informed about these updates to ensure compliance. Recent updates include changes in the blocking of eWay Bills for non-filing of GST returns and other important notifications. Staying up to date with these developments helps businesses avoid penalties and disruptions in their operations.

9. FAQs on eWay Bill

Common questions and answers

1. Can I add two invoices in one eWay Bill?
2. Should I generate eWay Bills for service-oriented transactions?
3. Is an eWay Bill required for shipments within a 10 km radius?
4. How many days after raising an invoice should I generate the eWay Bill for delayed delivery?
5. What is the responsibility and liability for the transporter in the eWay Bill system?
6. How can multiple eWay Bills be generated for a consignment involving multiple transporters?

Clarifications on various scenarios

These FAQs provide clarification on common queries related to the eWay Bill system. They cover different scenarios and help businesses understand their obligations and responsibilities in eWay Bill generation.

10. Conclusion

In conclusion, the eWay Bill system plays a crucial role in ensuring the smooth movement of goods under the GST regime. It is essential for businesses, registered persons, and transporters to understand the rules, requirements, and procedures associated with eWay Bill generation. By complying with the eWay Bill regulations, businesses can avoid penalties, improve efficiency in their supply chain, and contribute to a more transparent and compliant tax ecosystem.

By following the guidelines provided in this comprehensive guide, businesses can navigate the eWay Bill system with ease and ensure compliance with GST rules and regulations.