How Will GST e-way Bill Impact You from April 1, 2018?
Last Updated : Nov. 24, 2021, 11:09 a.m.
Sticking to its announcements made earlier, the government has rolled out the e-way bill under GST from April 1, 2018, for the movement of goods worth more than ₹50,000. Removing all those jargons that can confuse you as a reader, let’s be told that the e-way bill is nothing but a bill that has to be generated online under the existing GST regime. Before April 1, 2018, the physical bill had to be procured for goods movement. So, let’s find out what the GST e-way bill rules are how can they impact the parties involved in the article.
e-way Bill System Validity
Doesn’t matter whether you generate the bill in Rajasthan or Punjab, it’s going to be valid across the states and union territories of India, except Karnataka. Also, whether it’s intra or inter-state, goods transfer worth more than ₹50,000 would require an e-way bill. However, there’s a slight change as far as the introduction of e-way bill for inter and intra-state movement of goods is concerned. Well, the e-way bill for inter-state is on from April 1, 2018. On the other hand, the e-way bill for movement within the states would be launched from 15th April 2018. The bill would be applicable in a phased manner. Now, you must be asking as to how long would the e-way bill be valid, right? Find your answer in the table below.
| Distance | Period of Validity |
|---|---|
| Less than 100 kilometres | One Day |
| For every 100 kilometres or part thereof | One Additional Day |
E-way Bill for Intra-State Movement of Goods Introduced in Five States
The e-way bill system is now on for the movement of goods across five states – Andhra Pradesh, Uttar Pradesh, Telangana, Gujarat and Kerala, from April 15, 2018. The Central Board of Indirect Taxes & Customs (CBIC) has drafted a procedure wherein a time-bound uploading of reports/forms by the revenue authorities has been detailed. Apart from that, the CBIC has detailed on the time-bound closure of cases involving the detainment of goods, the instructions to release the goods in the case of no prima-facie irregularities, etc. The motive of this CBIC exercise is to ensure a uniform way for to intercept and conveyance for goods inspection, seizure, detention, as well as release and confiscation of such goods and conveyance, according to CBIC.
Six more states – Himachal Pradesh, Haryana, Uttarakhand, Tripura, Bihar and Jharkhand – are likely to join the e-way bill bandwagon from April 20. The finance ministry has indicated the success of e-way bill by releasing a statement saying over 1.33 crore e-way bills have been generated till April 17, 2018.
The rollout of the e-way bill is expected to boost the trade within these five states. The initiative would ensure a quick delivery of goods within the states by allowing the involved parties to generate the bills online, unlike the earlier times of going to the transport offices and waiting for hours to get the bill generated. The faster delivery would ensure an optimum supply of goods, thus keeping the prices reasonable and fair for the end consumers.
Who Should Generate e-way Bill?
The e-way bills have to be generated by the parties involved in the consignment of goods within or outside the state.
Either a consignor or consignee – Each consignment or all the consignments put together for goods worth more than ₹50,000, transported in own vehicle, ship, railways or airways.
Transporter – In case the goods are transported by road and the e-way bill is not generated by either a consignor or consignee, a transporter or GTA would have to generate the bill for the goods given to it on the basis of Part A or Invoice details furnished by the consignor.
e-way Bill Registration
One has to first register before generating an e-way bill. So, a consignor or consignee can go to e-way bill portal and register. The moment you enter the GSTIN, a one-time password (OTP) will come to the mobile number registered with the GST Portal. After authenticating the OTP, the e-way bill system would help you generate username and password. If you don’t know the GSTIN, you can go to the official link of GST and find the same under ‘Search Taxpayer’ tab.
e-way Bill Login
Now that you are registered to e-way bill portal by virtue of creating a username and password, make sure to use these credentials to log in and generate the e-way bill. To log in, you need click on ‘Login’ icon and mention the credentials.
e-way Bill Proforma Invoice
So all those who are registered must fill the GST EWB – 01 featuring particulars under Part – A and Part – B. Let’s check out the format of the form.
| Part A | Part B |
|---|---|
| A.1. GSTIN of Recipient | Vehicle Number |
| A.2. Place of Delivery | |
| A.3. Invoice or Challan Number | |
| A.4. Invoice or Challan Date | |
| A.5. Value of Goods | |
| A.6. HSN Code | |
| A.7. Reason for Transportation | |
| A.8. Transport Document Number |
Now check out what the particulars shown in the table mean. At Place of Delivery, you need to mention the PIN Code of that place. Transport Document Number blank space needs to be filled with Goods Receipt Number, Airway Bill Number, Railway Receipt Number or alike. HSN Code which you see must be filled in 2 digits for tax paying enterprises having an annual turnover of up to ₹5 crores and 4 digits for those with a turnover more than ₹5 crores. You can choose any of the following to quote your reason for transportation.
- Export or Import
- Supply
- Job Work
- Live Sales
- Sales Return
- Fairs or Exhibitions
- For Own Use
- Others
e-way Bill Enrolment
Transporters who are not registered under Goods and Services Act but are involved in the transfer of goods for their clients must enroll for the e-way bill first. These transporters can enroll by visiting the official website of e-way bill system. Firstly, they need to go to ‘Registration’ and from there to ‘Enrolment’. The moment the latest tab gets clicked, a new page will appear seeking a mention of state, PAN, trade name, constitution of business, place of business details, contact information such as e-mail ID & mobile number, name of the proprietor or the main person of a company or firm and click on ‘Send OTP’. Enter the OTP sent to your registered mobile number and click on ‘Verify OTP’.
Subsequently, a transporter has to upload both the identity and address proofs. Afterward, the concerned party can create login credentials by choosing a Username and Password meeting desired requirements in terms of numeric, alphabets and special characters. There’s a ‘Save Button’ at the bottom to click on. After the button gets clicked, a transporter can obtain TRANSIN or Transporter ID, which is a 15-digit unique number generated by EWB System for unregistered transporter upon the enrollment.
Where is e-way Bill Not Required?
The GST e-way bill is not required in the following cases. Take a look.
- When the mode of transport is through a non-motorized conveyance
- Goods transported from airport, port, land customs station or air cargo complex to Container Freight Station or Inland Container Depot (ICD) for custom clearance
- Transportation of specified goods under CGST Act or SGST Act of the relevant states, if any
- When the goods transported is treated as ‘No Supply’ under Schedule III of the CGST Act
- Transport of high-speed diesel, petroleum crude, aviation turbine fuel, natural gas or motor spirit
Advantages of e-way Bill
An e-way bill has a lot of good days in store for the Indian logistics industry, which is a key component of the economy. If the latest reports are to be believed, India spends approximately 15% of the GDP on logistics. India’s logistics market is likely to hover around US$307 by 2020, Minister of State for Drinking Water and Sanitation Ram Kripal Yadav said in an Assocham event a couple of years ago.
The GST has already led to considerable changes in the logistics industry by cutting down the number of checkpoints, integrating multiple warehouses into a large one, etc. Now with the introduction of the e-way bill, the process is simplified further for the logistics industry. The wait times can be reduced substantially at checkpoints, which often is attributed to a delay in the shipment. The accountability can be ensured with the documents getting digitized. It all depends on how efficiently the e-way bill system is implemented. If it’s implemented wisely, the logistics industry could be in for a significant positive change.
Challenges to the Successful Implementation of e-way Bill
The biggest challenge that the e-way bill can confront is the poor internet connectivity and inadequate e-literacy among the business enterprises. Most transporters, consignors and consignee may not be Internet savvy, thus becoming a huge drawback for the success of the e-way bill in India. Also, the rules state that a fresh e-way bill is needed every time there’s a change in the mode of transport. Just think of the hassles that an e-commerce player can have with such a rule in place. E-commerce players invariably use a variety of transport modes to make sure the goods reach the customers easily and safely. With so many transport modes, e-commerce companies would end up generating a lot of e-way bills. So many times one cancels the order when the goods are in transit or even return the goods purchased. All that will lead to a fresh generation of bills and a headache for the e-tailers.