E-Way Bill

E-Way Bill

E-Way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of Section 68 of the Goods and Services Tax Act read with Rule 138 of the rules framed thereunder. It is generated from the GST Common Portal for eWay bill system by the registered persons or transporters who cause movement of goods of consignment before commencement of such movement.

E-Way Bill

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.

How is it generated?
  • An e-way bill contains two parts- Part A to be furnished by the person who is causing movement of goods of consignment value exceeding Rs.50,000/- and part B (transport details) to be furnished by the person who is transporting the goods.
  • Where the goods are transported by a registered person - whether as consignor or recipient, the said person shall have to generate the e-way bill by furnishing information in part B on the GST Common Portal for eWay bill system
  • The details of e-way bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill. In case, the recipient does not communicate his acceptance or rejection within seventy- two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.
Validity of E-Way Bill

    • The validity of e-way bill depends on the distance to be travelled by the goods.
    • For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant date.
    • For every 100 Km thereafter, the validity will be additional one day from the relevant date.
    • The “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.
    • In general, the validity of the e-way bill cannot be extended.
    • However, Commissioner may extend the validity period only by way of issue of notification for certain categories of goods which shall be specified later.
Further, if under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.

Why is the e-way bill required?

Section 68 of the Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of CGST Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods in certain prescribed cases. Hence e-way bill generated from the common portal is required.

E-Way bill Form
  
Copyright 2022 Krishna tax consultancy Pvt Ltd Website Developed by Maria Infotech Pvt. Ltd.