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Eway Bill – What is Eway Bill?

E-way bill

E-way bill :

E-way Bill is an Electronic way bill for movement of goods to be generated on theE-way Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 1,00,000 or Rs 50,000 in some states (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.

When an E-way bill is generated, a unique E-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Purpose of E-way bill

E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion.

Who should generate an E-way bill?

  • Registered Person – E-way bill must be generated when there is  a movement of goods of more than Rs 1,00,000 or Rs 50,000 in some states in value to or from a registered person. A Registered person or the transporter may choose to generate and carry E-way bill even if the value of goods is less than Rs 1,00,000 or Rs 50,000 in some states.
  • Unregistered Persons – Unregistered persons are also required to generate an E-way bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
  • Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-way bill if the supplier has not generated an e-way bill.

Documents or details required to generate E-way bill

  1. Invoice/ Bill of Supply/ Challan related to the consignment of goods
  2. Transport by road- Transporter ID or Vehicle number
  3. Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

Components of E-way bill

  1. Part A comprising of details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number and reasons for transportation; and
  2. Part B comprising of transporter details (Vehicle number). It containing transport details helps in generation of e-way bill.

Can the validity of E-way bill be extended?

Yes, the validity of the GST E-way bill can be extended, if the consignment does not reach the destination within the validity period due to reasons like natural calamities, law and order issues, trans-shipment delay, accident of conveyance, etc.

Validity of e-way bill can be extended by the current transporter and if the transporter is not assigned then by the generator of the e-way bill.

Validity of e-way bill can be extended between 8 hours before expiry time or 8 hours after the expiry time

Cancellation of E-way bill

Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill. However, an e-way bill cannot be cancelled if it has been verified in transit in accordance with CGST rules,2017.

Consequences of not generating an E-way bill 

 During the movement of goods, if the business is unable to produce an E-way bill, the consequences can be monetary or non-monetary, or both. Here are some of the consequences of not generating an e-way bill: 

  • Penalties and fines

The minimum fine for not carrying a valid e-way bill is Rs 10,000. In this way, if goods are transported without an e-way bill, a fine is guaranteed. However, if the authorities conclude that this non-generation of the e-way bill was an excuse to evade GST, they can levy a penalty which might be equivalent to the amount of tax payable on the specific consignment or Rs 10,000, whichever is higher. 

  • Detention and Seizure of goods and vehicle

The goods and the vehicle can be detained and seized by the field officer for non-complying with the E-way bill provisions. However, the taxpayer can get the possession back, once he/she pays the dues or penalty with 7 days of detention and seizure. But if the taxpayer fails to pay the dues or penalties within the stipulated time, the tax officer can even confiscate the goods or/and vehicle.

CS Seema Bansal

CS Seema Bansal having experience of two years under CS firm and also having degree of B. Com and M. Com. Having expert knowledge of ROC related work and other company related compliances with MCA.

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