Understanding E-Way Bill
E-way bill is an abbreviated form of Electronic Way Bill. Now in case you are unaware of it, E-Way Bill is a unique document/bill which is generated electronically for movement of good from one place to another (either inter-state or intra-state). It has become compulsory for any inter-state or intra-state transportation of goods in India where the consignment of goods exceeds Rs. 50,000.
E-way Bill can also be generated or cancelled through services like SMS and Android App. A Unique Bill Number (EBN) is generated and is available to the supplier, the recipient and the transporter.
Let us now understand some more details regarding the E-Way Bill Payment to have a better understanding of the same.
Who has to generate the E-way Bill
- Registered Person- Whenever there is a transport of goods of more than Rs. 50000 from a registered person or to a registered person, an E-Way Bill must be generated.
- Unregistered Person- Just like registered ones, Unregistered Persons are also required to generate E-way Bills in case of transport of goods of more than Rs. 50000.
- Transporter- In case the supplier has failed to generate an E-way Bill, the transport carrying the goods through medium of rail, road or air, must generate an E-way Bill if the goods being transported by him are of more than Rs. 50000.
When should the E-way Bill be generated
An E-Way Bill must be generated when-
- The transportation of goods (value of more than Rs. 50000) is in relation to a supply, a return or an inward supply. The supply may be made for a consideration which may or may not be in the normal course of a business.
- The transportation of goods is in relation to a Sale (sale of goods in return for a consideration), Transfer (transfer of goods from one branch office to another, Barter (where goods are transported as a form of consideration).
An E-Way Bill must be generated compulsorily even if the value of the Goods being less than Rs. 50000, when-
- The transportation of goods is by the Principal to the Job worker by Principal/ Registered Job Worker.
- The transportation of Handicraft goods by a dealer who is exempted from GST registration.
When should the E-Way bill not be generated
An E-Way Bill is not required when-
- The transportation of goods is under Custom’s supervision
- The transportation of goods is through a non-motor vehicle.
- The transportation of transit Cargo is under process to or from Bhutan and Nepal.
- The transportation of empty Cargo Containers is being made.
- The transportation of such goods which are specifically exempted from E-Way Bill requirements in the respective State GST rules.
Documents required to generate E-way Bill
Following are the documents that are necessarily required in order to generate an E-Way Bill-
- Invoice or Bill of Supply related to the consignment of goods.
- In case of:
- Road Transport- Vehicle No. or Transporter ID
- Rail/ Air/ Ship Transport- Transporter ID, Transport Document No. and the Date on the Document.
We sincerely hope that the insights on the E-Way Bill Generation given in this article would certainly help you in your business. Leave your Comments in the Comment section below to share your opinions on the Implementation of E-Way Bill Generation System.
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