What is GST E-Way Bill System? (Rules, Registration & Generation Process)
- January 2, 2020
- Posted by: Editorial Team
Lately, the government of India issued a form of the bill, which is referred to as an “E-Way Bill”, which is an electronic/online bill in contrast to the GST (Goods and Services Tax). The issuance of the E-way Bill has also marked the end of the Border Commercial Tax Post. This step was taken to prevent individuals from evading tax payment.
In this article, we will explain in detail E-Way Bill, the essential rules that need to be followed and also show you the process of generating an E-Way Bill online.
What is an E-Way Bill?
The E-Way Bill (EWB) was introduced by the government of India, especially with regards to the transportation of goods from one region to another in the country. The e-way (electronic way) invoice system underneath GST (Goods and Services Tax) for inter-state motion of goods got here into effect on April 1. GST e-way invoice is a record required to be carried by someone in price of the conveyance wearing any freight of goods that are valued over Rs. 50,000, as mentioned by way of Central Board of Indirect Taxes and Customs (CBIC). The E-way invoice may be generated from GST commonplace portal for e-way invoice devices on the website ewaybillgst.gov.in by means of the registered men and women or transporters who purpose the motion of products of consignment before graduation of such motion, knowledgeable CBIC.
The full form of the E-Way bill method is an electronic way invoice. Thus, the E-Way bill is necessary for the transportation of merchandise in both inter and intrastate transportation. To positioned it truly just like the call suggests it is an electronic record generated from the e-manner bill portal ewaybillgst.gov.in evidencing movement of products. It is basically a compliance mechanism under GST wherein by the manner of a virtual interface the character inflicting the movement of products (consignor/seller) uploads the relevant statistics prior to the commencement of the movement of products and generates e waybill at the GST portal. It contains the subsequent information, such as:
- Name of Consignor
- The factor of starting place of the consignment
- Destination information
As in line with the GST rules, all persons registered under GST, who reasons the motion of goods of consignment value extra than Rs.50000, is needed to furnish the details of the said items in a specified form (e-manner bill), before the graduation of such motion of goods.
Requirements for Generating E-Way Bill
According to Section 68 of the GST Act, it is mandatory that the authorities might also require the individual in fee of a conveyance sporting any consignment of products of fee exceeding Rs 50,000 to hold with him such files and such gadgets as may be prescribed, stated CBIC within the circular. Rule 138 of the CGST (Central Goods and Services Tax) Regulations, 2017 prescribes an e-way invoice as the report to be carried for the consignment of goods in certain prescribed cases.
Some Benefits of E-Way Bill
The way invoice mechanism has numerous benefits which can be stated as follows:
- The E-Way Bill will facilitate quicker movement of goods.
- It will improve the turnaround time of trucks since the check-post has been abolished. Thus, will have some advantage in the logistics industry by minimizing the journey time and expenses in addition to increasing the distance traveled.
- It is a user-friendly E-Way bill generating mechanism, which means that it is not necessary to go to the e-Way bill department for the same purpose of the E-Way bill as this turned into the major problem in the present mechanism. The e-way invoice can be immediately generated online
- The entire system is online, as a result of keeping off tax evasion.
Ways to Register for an E-Way Bill
There are a few different ways through which you can easily register for an E-Way Bill on the official government portal. These are given below:
- Website (the official government site: https://ewaybillgst.gov.in/)
- Through direct SMS from your mobile phone
- By using the app available for Android devices on Google PlayStore
- Through API
- By visiting third-party GST provider sites online
E-Way Bill Generation Process Online
As per the regulations set by the Central Board of Indirect Taxes and Customs (CBIC), being a registered transporter of the goods, the consignor or consignee can generate the E-Way Bill from the not unusual portal by the usage of the GSTIN (Goods and Services Tax Identification Number). Thus, according to the CBIC, a consignor who is not registered can visit the website in order to generate the E-Way Bill that will allow him/her to transport the required goods for his/her customers. Also, it is stated that any individual who transports goods for their use can apply for and generate the E-Way Bill online.
The E-Way Bill can be quickly generated online simply by visiting the official website. The procedure for achieving this task is given below:
Step 1: From your web browser, go to the website https://ewaybillgst.gov.in and go to the login page.
Step 2: On the login page, you are required to provide the necessary details, such as a username and password, then verify the Captcha code to proceed.
Step 3: Upon successful verification of the details you provided during sign up, you will automatically be redirected to the E-Way Bill portal.
Step 4: On the E-Way Bill portal, you are required to click the E-Way Bill option.
Step 5: When you have selected the E-Way Bill option on the portal, you will be presented with the E-Way Bill Entry Form EWB-01 on your screen.
Step 6: Now, in the Supply section, choose:
(i) Outward – Choose this option if you are a supplier
(ii) Inward – Choose this option if you are a recipient
Note: When you are supplying merchandise to your customers, then you are required to choose the Outward type of supply option. On the other hand, if you are receiving the merchandise from the supplier, in that case, you are required to choose the Inward option from the Supply type.
Step 7: After that choose the form of your transaction in the Sub Type option.
- For Outward type, you can choose from the applicable options such as Export, Supply, SKD/CKD (Semi Knocked Down/Completely Knocked Down), Job work, Recipient unknown, Own use, Line Sales, Exhibition of Fairs, Others.
- For Inward type, you can choose from the applicable options such as Import, Supply, SKD/CKD, Job work returns, Sales return, Own Use, Exhibition of Fairs, Others.
- Choose Supply option, if the merchandise is moved in the event of advancement of the business.
- Choose Export option, if the merchandise is to be exported internationally.
- Choose Job work option, if the merchandise is to be sent for further process.
- Choose SKD/CKD option, if the merchandise is to be sent in a disassembled form.
- Choose Recipient not known option, if the recipient is not known for the approval of the merchandise in the event of sale.
- Choose For own use option, if the merchandise that is to be sent is for his/her personal use.
- Choose Exhibition of Fairs option, if the merchandise is to be sent for the purpose of an exhibition or fair.
- Choose Line Sale option, if there are goods of the same business brand which are to be transported to different retailers in bulk to be sold separately (for example, cold drinks).
- Choose other options, if none of the above fits your needs.
Step 8: Next, you are required to choose the type of document:
At this point, you must choose the type of document you will use for the purpose of generating E-Way Bill, such as:
- Bill of Supply – As per the GST regulation, the composition dealer must issue the Bill of Supply, which is an invoice, barring the dealer from charging taxes.
- Delivery Challan/Slip – Since, it is not required to issue a tax invoice in the category of Sales return, Job work, Own use or Exhibition of Fairs, thus a delivery challan/slip will suffice this.
Step 9: You will need to provide the “document number” along with the document date of the respective documents that you selected in the document type above. Then, in the Transaction Type option, you are required to choose from the following:
- Regular – Choose this option, if there is only a single seller and buyer.
- Bill to ship to – Choose this option, if you are going to bill to one party and dispatch goods to another party on behalf of the party whom you have billed for the goods dispatched.
- Bill from and ship from – Choose this option, if you are going to bill from a registered source/place while dispatching the merchandise from a different source/place.
Step 10: In this step, you are required to provide the details of the location where the merchandise has been dispatched from and where it is to be delivered. The details here include:
- Pin code
Note: The details of the seller will be populated automatically on the document.
In case you are to transport merchandise to an unregistered dealer, then you are required to enter “URP” under GSTN details, followed by the name of the unregistered dealer, which is necessary (if you are transporting merchandise to an unregistered dealer).
Step 11: Next, you are required to enter information about the merchandise. These include:
- Product Name
- Product Description
- HSN Code
- Product Quantity
- Tax Charged
- Rate of Tax
Note: There are options available that allow you to add more that one product.
Step 12: In this step, you will be required to enter the information of the person who is transporting the merchandise. This information includes:
- Name of the transporter
- Transporter’s ID
- Distance covered (approximate value)
Note: It is necessary to provide the details of the distance covered by the person who is transporting the merchandise.
Step 13: Also, you are required to provide details of the person transporting the merchandise. This information needs to be filled in Part B of the EWB-01 Form. This can be done by following the steps given below:
1. Select the medium of transportation, such as road, air, rail or ship.
2. Choose the type of vehicle used for transportation. Choose Regular and over-dimensional cargo.
Note: An over-dimensional cargo is a single indivisible cargo and exceeds dimensional limits as regulated in the Motor Vehicle Act, 1988.
3. Enter the vehicle’s registration number.
4. Enter the document number and date (optional) of the person who is transporting merchandise.
Step 14: Finally, before submitting the details, do not forget to review all the information that you have provided. Once done, simply click the Submit button and your E-Way Bill will be generated for you within minutes.
You may also print a copy of the E-Way Bill and present it to the authorities whenever necessary.
It is possible to generate or, if you wish, you may even extend or cancel the E-Way Bill, either from the official government portal, through direct text message, API or from the app on your Android device. The steps are pretty much the same and you should be able to generate E-Way Bill in no time.