The Goods and Services Tax (GST) regime in India brought about a significant change in the way goods are taxed and accounted for during transportation. One critical aspect of this system is the Electronic Way Bill, commonly known as the E-Way Bill. Let’s delve into the intricacies of what an E-Way Bill is, its format, and the rules and regulations surrounding its generation.

What is an E-Way Bill?

An E-Way Bill is a mandatory document for the movement of goods from one place to another, ensuring tax compliance under GST. As per Rule 138 of the CGST Rules, 2017, registered carriers transporting goods exceeding ₹50,000 in value must generate an E-Way Bill. This mechanism aids in tracking transactions, curbing tax evasion, and streamlining the transportation of goods.

E-Way Bill Format

The E-Way Bill is generated with a unique E-Way Bill Number (EBN), the bill generation date, and the GST number of the consignor, transporter, and consignee. The bill consists of two parts:

Part A of Form GST EWB-01:

GST details of the consignee.

Invoice or challan number and date.

Pin code of the delivery place.

Reason for transportation.

Value of the goods.

Harmonised system of nomenclature (HSN) code.

Transport document number (goods receipt number/railway receipt number/airway bill number/bill of lading number).

Part B of Form GST EWB-01:

This part comprises the vehicle number.

Generating E-Way Bill: The Process

Carriers need to generate the E-Way Bill on the GST electronic portal, which is separate from the common portal used for GST returns. Here’s a step-by-step guide:

Registration on E-Way GST Portal: Carriers registered under GST must register separately on the E-Way GST portal for bill generation. The business’s GST Identification Number (GSTIN) is required for registration.

Authentication: After providing the GSTIN, a one-time password (OTP) is sent to the registered mobile number. Once authenticated, a username and password for the E-Way Bill portal are created.

Transporter Registration: Transporters without a GSTIN must enroll on the E-Way Bill portal and receive a 15-digit Unique Transporter ID.

Who Generates the E-Way Bill?

The entity sending or receiving the shipment is responsible for generating the E-Way Bill. If transportation is outsourced, the transporting company generates the E-Way Bill. However, the transporter can only update Part B, while the registered person must provide details for Part A. If the consignor and transporter are within 50 kilometers in the same state, and the consignee is also in the same state, conveyance details in Part B are not mandatory.

Important E-Way Bill Rules

Value Threshold: An E-Way Bill is mandatory for consignments exceeding ₹50,000 in value.

Multiple Consignments: If shipping multiple consignments at once, E-Way Bills are required for those exceeding ₹50,000. Carriers need to consolidate E-Way Bills for multiple consignments.

Multiple Vehicles: For consignments transported via multiple vehicles, transporters must update vehicle details on the E-Way Bill through the GST portal.

Non-Compliance Consequences

Failure to generate E-Way Bills or non-compliance with Rule 138 of the CGST Rules, 2017, can result in penalties and consignment detention/seizure:

Penalty: Per Section 122 of the CGST Act, 2017, a penalty of ₹10,000 or the eventual tax amount evaded, whichever is greater.

Consignment Detention/Seizure: Per Section 129 of the CGST Act, 2017, authorities can detain or seize non-compliant consignments in transit.

E-Way Bill Exemptions

E-Way Bills are not required for consignments:

Valued less than ₹50,000.

Transporting specific goods listed in Annexure to Rule 138(14) of CGST Rules, 2017.

Moved via non-motorised conveyance.

Transported from specific areas mentioned under Rule 138(14)(d) of the SGST Rules, 2017.

Understanding the nuances of E-Way Bills is crucial for businesses and carriers to ensure compliance with GST regulations, avoid penalties, and facilitate smooth transportation of goods across state borders.