GST E-Way Bill

GST E-Way Bill – Procedure for Generation & Cancellation

GST e-way bill is a document issued by a carrier which provides details regarding shipment of the consignment. The GST e-way bill mechanism ensures that goods are being transported in line with the norms of GST and relevant information is uploaded before the commencement of the transportation of goods. The biggest use case for GST e-way bill is to track the movement of goods across India and to curtain the evasion of GST. In this article, we look at the procedure for generation of cancellation of GST E-Way Bill.

Information & Documents Required

GST e-way bill can be generated on the GST portal. GST e-way bill must be mandatorily generated before transportation of any goods which has a taxable value of more than Rs.50,000. The following information must be provided to generate a GST e-way bill:

  • GSTIN of recipient
  • Place of delivery (PIN Code)
  • Invoice or challan number and date
  • Value of goods
  • HSN code
  • Transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number)
  • Reasons for transportation
  • Transporter details (Vehicle number)

Generation of An E-Way Bill

The e-way bill is created by the consignor or consignee on his/her own, for transport of goods via railways, air or ship. If the goods are transported by road, GST e-way bill would be created by the transporter. The consignor or the consignee generates the e-way bill if the value of goods is more than Rs. 50,000.

In case of transfer of goods for job work by a principal located in one state to a job worker located in any other state, then the e-way bill must be generated by the principal irrespective of the value of consignment.

Part A of GST E-Way Bill

Part-A of the GST e-way bill would be completed by the individual who controls the movement of consignment. Part-B of the GST e-way bill would be generated by the transporter.

Part B of GST E-Way Bill

When goods with a taxable value of more than Rs.50,000 are to be transported by a registered person, a GST e-way bill must be generated by updating the information as mentioned above on the GST Portal. (Irrespective of the fact that he may be a consignor or a recipient).

In Part-B of the GST E-Way Bill, details of the transporter are updated and GST e-way bill is generated along with a unique e-way bill number (EBN) which will be available to the supplier, the recipient and the transporter.

During the process for generation of GST e-way bill number, the detail of the request is made available to the registered recipient on the common portal. In case, the recipient does not communicate acceptance or rejection within 72 hours, the e-way bill would be considered accepted. On the other hand, before 72 hours, the registered person can accept or reject an e-way bill at anytime.

Validity Of An E-Way Bill

Validity of a GST e-way bill depends upon the distance of transportation. If the distance is less than 100 Km, the e-way bill would be valid for 1 day from the date of generation of the bill. For every additional 100 kms, the e-way bill’s validity would be 2 days additional from the date of generation of the bill. In case the goods cannot be transported within the validity period of the e-way bill, the transporter can produce another e-way bill for the same consignment after updating the details in the “Part B” section of form “GST EWB-01”. Finally, in rare circumstances, the Commissioner can extend the validity period of GST e-way bill through issue of notification for certain categories of goods alone.

Cancellation of An E-Way Bill

  • In case, an e-way bill had been generated, but the goods have not been transported or are not transported as per the details furnished in the bill, then the e-way bill can be cancelled online on the GST Portal or through a GST Facilitation Centre.
  • A GST e-way bill can be cancelled easily within 24 hours of its generation. However, an e-way bill cannot be cancelled if it had been verified in transit.

GST E-Way Bill Requirement for Transportation

The following requirements must be satisfied by the transporter and registered person while transporting goods with a GST e-way bill:

E-Way Bill

GST e-way bill must be generated for all consignment on the transport where the value of the consignment exceeds Rs. 50,000. In case of ,multiple consignments comprising varying values (per consignment) are to be carried in a single vehicle, e-way bill must be compulsorily generated for those consignments whose value exceeds Rs. 50,000. For multiple consignments, transporters are also allowed to generate a consolidated GST e-way bill indicating serial number for all the way bills before commencement of transport.

However, there is no constraint on the minimum amount for which GST e-way bill can be generated. Hence, GST e-way bill can be generated even for transport of consignment wherein the value of goods transported is less than Rs.50,000.

Other Documents

In addition to the GST e-way bill, the person in charge of a transport must carry the invoice or bill of supply or delivery challan in addition to the e-way bill. Finally, GST Commissioner can also require certain class of transporters to obtain a unique Radio Frequency Identification Device and get the device embedded and mapped onto the vehicle prior to the commencement of travel.

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