E-Way bill is an electronically generated bill or receipt need to be generated for the purpose of transportation of goods worth more than Rs.50000 across the state.
GST council made E-Way bill compulsory for inter-state & intra-state goods transport. Govt. implemented e-way bill operation to make transportation seamless & easy by abolishing check post verification.
How it works?
- Every registered taxpayer needs to furnish all details on e-Way bill portal before transportation of goods and generation of the e-Way bill.
- After providing all information an e-way bill will generate for the registered person or seller, the transporter, and the receiver
- The transporter need to carry an invoice/challan along with e-way bill while doing the movement of goods
- Upon receiving goods or items the receiver may update the status as received or rejected
- While generating e-way bill the registered person has to put information like GSTN, HSN code, Invoice number, invoice date, the value of goods etc.
How to generate E-Way Bill?
E-way bill system will go through a test from January 25 and will be implemented on a mandatory basis from Feb 1. To create e-way bill you need to visit portal www.ewaybill.nic.in. On the portal, you can do the following things:
- Can generate an E-Way Bill
- Can cancel a generated E-Way Bill within 24hours for non-transportation or change in consignment
- Can modify the existing E-Way Bill
How to register on E-way bill portal?
It’s very easy & quick to get registered on e-Way bill portal. To do registration a supplier needs to have a GSTN and GST registered mobile number at the time of registration.
- First, go to the e-Way bill portal and there you will see the below screen:
- On this portal first click on registration tab and under that, you will see e-Way bill registration. Now click on e-Way bill registration
- Then enter the code & GSTN number and you will see a registration form. Put all details like applicant name, trade name, address, email id and mobile number etc. and get registered for e-Way bill generation.
Now login to your e-Way bill accounts to generate an e-Way bill.
Here is the step by step process to generate EWBs. for registered suppliers. There are some pre-requisites for generating an e-way bill:
- The Invoice/ Bill/ Challan related to the consignment of goods must be in hand.
- If transport is by road – Transporter ID or the Vehicle number.
- If transport is by rail, air, or ship – Transporter ID, Transport document number, and date on the document.
Here is the step by step guide to generate EWB at the online portal.
1: Enter the Username, password, and Captcha code, Click Login button.
2: Click on Generate new under E-waybill option appearing on the left-hand side of the dashboard.
3: Select the Transaction Type and respective Sub Type
If you are a supplier of consignment, then select outward. And by selecting it following Sub Type will appear:
If you are a recipient of consignment, then select Inward. And by selecting it following Sub Type will appear:
4: Then Select the Document Type i.e Invoice (INV), Bill (BIL), Bill of Entry (BOE), Challan (CHL), Credit Note (CNT), and Others (OTH). And then Document No. and Document Date
5: Then select the From and To
Note: If the supplier/client is unregistered, then mention ‘URP’ in the field GSTIN, indicating that the supplier/client is an ‘Unregistered Person’.
6: Add the Item Details of the consignment (HSN code-wise) in this section:
And it should contain all the fields include:
Product name, Description, HSN Code, Quantity, Unit, Value/Taxable value, Tax rates of CGST and SGST or IGST (in %), a Tax rate of Cess, if any charged (in %)
7: Under Transportation, Details select the mode of transport (Road/rail/ship/air) and the approximate distance covered (in KM) needs to be compulsorily mentioned in this part.
8: Then Click Submit. The system validates data entered and throws up an error if any. Otherwise, your request is processed and the e-way bill in Form EWB-01 form with a unique 12 digit number is generated. The e-way bill generated looks like this:
After submitting the EWB will look like this.
And here is the sample entry form would look like this:
Now, let’s discuss up to how much duration this generated e-way bill would be valid.
- It will be valid for 1 day within 100 Km distance.
- It will be valid up to 3 days within distance 100Km or more but less than 300Km
- It will be valid up to 5 days within distance 300Km or more but less than 500Km
- It will be valid up to 10 days within distance 500Km or more but less than 1000Km
- It will be valid up to 10 days within a distance more than 1000Km
E-Way Bill objectives and Benefits
Here are some major objectives of the e-Way bill:
- To avoid tax evasion – Traders a lot of time evade tax and to put a hold Govt introduces an e-Way bill
- Faster movement of goods – While transporting goods from one place to other transporters has to spend a long duration at the check post to pay taxes. But after the introduction of the e-Way bill, this will be done over online with less time leading to faster of goods.
- There would no need for separate transit pass at each state for movement of goods
- Tracking of Goods – As the bill will be generated over online, so the tracking of goods movement will be in real-time unlike before
- Easy Verification of e-Way bill – There will no manual verification of e-Way bill as every detail will be over online. This online verification will save more time for the traders also for tax officers.
Benefits of E-Way Bill
- Traders will no have to submit e-way bill manually at the tax office. It’s a very time-consuming task for both parties.
- Immediate E-Way bill generation
- As through E-Way, the supplier has got all details over online so GSTR-1 filing will be done automatically using those supply/transportation data
- E-Way bill verification will be done at a faster rate
E-Way is an initiative taken by GST council for easy & hassle free movement of goods across states. It will encourage trader to do more business also to have all supply data in one place.
This process will be more transparent than before. In Government point of view, a trader will not able to avoid taxes.