As to rule 138 of the CGST (Central Items and Services Tax) Act, all firms registered under GST that transport goods valued more than Rs. 50,000/- must use the GST e-way bill or waybill. The E-Way bill is a compliance instrument that ensures that items are transported in compliance with GST laws. Prior to the transfer, it is submitted onto the GST portal with the appropriate information about the products being moved. This makes it easier to trace them.
What are the components of a GST E-Way Bill?
PART A and PART B are the two parts of the GST E-way bill that are generated.
Part A requires information from the person who is causing the movement of goods, such as his or her GSTIN (GST Number), delivery location (Pincode), invoice number (with date), the value of transported goods, HSN (Harmonized System of Nomenclature) code to classify the category of goods for calculating the tax slab, and the document number based on the mode of transport (Railway Receipt Number or Airway Bill Number or Bill of Lading Number, etc.), and
Transport information, such as transporter ID and vehicle information, is required in Part B. The transport information in Part B is used to generate the GST E-Way bill.
Benefits of GST E-Way Bills
- The bill generation mechanism built under the VAT taxation system is no longer a bottleneck.
- Different states set different regulations for creating E-Way Bills under the VAT system as well. There is a consistent and reliable mechanism for generating E-Way bills across the country under GST.
- It provides a computerized interface for entering data and generating E-Way Bills, allowing for speedier goods movement.
- It seeks to reduce the turnaround time, travel time, and expenses by being able to follow the movement of items.
Who needs GST E-Way Bill?
- Consignor/Consignee: When a Consignor/Consignee registered under GST transports goods worth more than Rs 50,000, the appropriate individual is required to generate an E-Way Bill.
- Transporter: The E-way Bill will be generated once the products have been assigned to the transporter to be transported.
- Transporter by default: If neither the consignor nor the consignee has generated an E-way bill and the value of the items being transported exceeds Rs. 50,000/-, it will be the transporter’s responsibility to do so.
- When a principal in one state/union territory transfers goods to a job worker in another state/union territory, the principal generates an E-Way Bill regardless of the consignment value.
Documents required to generate an E-Way Bill
The E-Way Bill portal (https://ewaybill.nic.in/) is where E-Way Bills are generated. Users log in and fill out the following documents with the required information:
- For products carried, invoices, bills, and receipts are required.
- Transport documentation – transporter ID and vehicle information (if items are transported by road).
- Transport documentation – transporter ID, travel document number, and date (whether items are transported by air, sea, or land).
The validity of a GST E-Way Bill
- The validity of an E-way bill is determined by the distance to be traveled.
- The E-Way bill is valid for 1 day from the relevant date’ for distances less than 100 km.
- The date on which the GST E-Way bill was generated is referred to as the relevant date.’
- After the first 100 kilometers, an additional day is added to the existing 1-day E-Way bill validity, starting from the relevant date.
- According to the principles of validity, this is not an extension, but rather an addition.
- The validity period cannot be extended in most cases. Unless the commissioner issues a notification based on the type of goods.
- In addition, if items are unable to be carried during the validity period, the transporter can alter the information in Part B of the FORM. GST EWB-01 and a new GST E-Way bill will be generated.
What are the penalties for non-compliance of the E-way bill system
- According to Rule 138 of the Consumer Goods and Services Tax Act (CGST) 2017, if E-Way bills are not issued in compliance with the provisions of the CGST Rules, 2017, this will be regarded as a violation of the E-way bill system’s rules!
- Taxable individuals who carry taxable products without the required documentation (including GST E-way bills) are liable to a penalty of Rs. 10,000/- or are considered tax evaders under the E-way bill system’s guidelines, according to Section 122. (Whichever is bigger at the time the application is submitted.)
- Individuals who move goods or store them while in transit are in violation of the E-way bill system, according to Section 129 of the Consumer Goods and Services Tax Act (CGST) 2017. As a result, the products and documentation associated with them may be held or seized.