E-way Bill Rules in GST

An Electronic eway bill is used for movement of goods; it is generated on the e-way bill portal. Once the e-way bill is generated, the supplier, recipient, and the transporter will be provided with a unique e-way bill number (EBN). During the transportation of goods across different states, the Centre levy tax and the revenue collected, was shared between the Centre and the State. To avoid such prevalent tax evasion and leakage of tax revenue, strict monitoring of the movement of goods was required both within and outside the state. These check-posts were set to primarily monitor the movement of goods on national highways and state borders.

Also, ensuring that the relevant duties and taxes have been paid on the goods being transported. Thus, the transporter responsible for the movement of goods within or outside the state had to be equipped with certain documents that need to be produced at the check-post for inspection.

Who should generate an eway bill?

Registered Person Unregistered Individuals Transporter
●     Eway bill is required when the movement of goods of more than Rs 50,000 in value to or from a registered person.

●     A registered person or a transporter must generate and carry the eway bill even if the value of goods is less than Rs 50,000.

 

●     Unregistered persons are required to generate e-Way Bill.

●     In the case where the supply of goods is made from an unregistered person to a registered individual, the receiver will have to ensure all the compliances are met for the transportation of goods.

●     Transporters who are responsible for the movement of goods by road, air, railways, etc. must generate an eway bill if the supplier has not already generated it.

Eway bill Documentation

As per the GST eway bill rules, the transporter or the person in charge of conveyance should carry the following documents:

  • Invoice, bill of supply, delivery challan as required
  • Require a copy of Eway bill or Eway bill mapped to a Radio Frequency Identification Device (RFID)

Eway Bill Verification

  • The verification process for eway bill is conducted by an officer who may intercept any vehicle to verify the E-way bill or the e-way bill number in physical form for all interstate and intrastate movement of goods.
  • The officer can conduct physical verification of the vehicle, after necessary approvals from the commissioner or an officer authorized on his behalf, in case of tax evasion suspicion.
  • Physical verification of the vehicle is carried out by an officer within the state or in any other state, and no further verification will be required unless specified.
  • After every inspection, the officer must record details of the assessment of goods in Part A of Form GST EWB 03 within 24 hrs of the inspection.
  • The final report for verification must be recorded in Part B of Form GST EWB 03 within three days of the inspection.
  • If the vehicle is detained for more than 30 minutes, the transporter has the right to lodge a complaint by uploading the details in Form GST EWB 04.

GST E-way Bill rules for e-way bill format

The e-way bill format in GST has two parts – Part A and Part B.

Part A of E-way Bill in Form EWB 01 collects the details of the consignment. They are as follows:

  • GSTIN of the recipient
  • Place of delivery
  • Invoice or Challan number
  • Value of goods
  • HSN Code

A reason for transportation and the transport document number that indicates either one of the Goods Receipt Number, Railway Receipt Number or Airway Bill Number.

Part B of Form EWB 01 contains details like the vehicle number in which goods are transported and needs to be mentioned. This detail will be filed by the transporter in the common portal.

GST Eway bill Modification

During an eway bill login through the portal, you get an option of vehicle number updation on the document. The eway bill modification is valid only in the following cases:

  1. If the vehicle number was not mentioned when generating eway bill
  2. If the goods get transferred to another vehicle/conveyance due to vehicle breakdown or transhipment.

Except for the reasons mentioned above, the details of e-way bills cannot be modified. The eway bill portal also has a bulk update vehicle number option where an excel template has to be filled and uploaded on the portal for updation of details for multiple e-way bills. The new e-way bill rules could significantly change the logistics scenario in India, and make the cross-border movement of goods much more seamless across the nation.

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