E-way bill Rules - simplifying the compliance under GST
As we move ahead post the initial hiccups in the registration and fixing the invoicing system under GST regime. The next thing to focus on is the E-way bill generation for transportation of goods.
In order to simplify the process of waybills generation with respect to earlier VAT regimes, the government is trying to shift to a completely online transparent process. This will do away with the discretionary powers of the tax authorities that sometimes restricted the movement of goods between the states.
What is an E-way Bill??
E-way bill is the document required for the transportation of goods with the value in excess of Rs. 50000 by a registered dealer (Seller), to be generated online before the commencement of movement of the goods. It has to be generated where the movement of goods is due to:
1. supply of goods
2. for reason other than the supply of goods - movement for job work
3. due to inward supply from an unregistered dealer - the responsibility of the buyer and not the seller
Where supply may be:
for a consideration (payment)
in the course of business
not in the course of business
without consideration (without payment) - eg. Free of cost supply
Supply means a sale of goods, transfer of goods (branch transfers), Barter / Exchange
Therefore, E-way bill will be required mandatorily for all movement of goods with the value in excess of Rs. 50,000 and discretionarily (not mandatory but advised) for the goods valued less than Rs. 50,000.
How to get an E-way bill??
An E-way bill can be generated by filling in the required information with respect to the supply of goods in the way illustrated below:
A registered person may submit a tax invoice in Form GST INV-1 on the common portal. If a registered person has uploaded the invoice, information in Part A of Form GST INS-1 is auto-populated from GST INV-1
Part B need not be filled for movement of goods within 50 Kms.
GST Invoice --> GST INS - 1 (E-way Bill) --> GST 1 (GST Return)
1. Every e-way bill would have a unique E-way bill number (EBN).
2. Un-utilized E-way bills have to be cancelled within 24 hours of the time of issuance
3. The details of the E-way bill will be provided to the Registered Recipient for his Acceptance / Rejection. If he doesn't accept or reject the same within 72 hours the same shall be deemed to be accepted
4. The e-way bill generated under rule 1 of the CGST rules or GST rules of any other State shall be valid in the State
What is the Validity of E-way Bill??
Provided that the Commissioner may, by notification, extend the validity period of an e-way bill for certain categories of goods
Points to be noted by a Transporter :
1. Transfer of goods from one conveyance to another would require a new E-way Bill (Form GST INS-1)
2. Consolidated E-way Bill: Transportation of multiple consignments in one conveyance, shall require the indication of a serial number of e-way bills generated in respect of each such consignment electronically on the common portal in the consolidated e-way bill in FORM GST INS-02
3. If Seller / Consignor does not fill the value of goods transporter may file INS -1 on the basis of basis of invoice or bill of supply or delivery challan, as the case may be.
What are the documents to be carried by the person in charge of the conveyance??
1. Invoice or bill of supply or delivery challan, as the case, maybe; and
2. a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance
However, in the registered person (seller) may obtain an Invoice Reference Number from the GST portal by uploading a tax invoice issued by him, and produce the same for verification in place of the tax invoice.
Such number shall be valid for a period of thirty days from the date of uploading.
Trust the update was useful. Should you need any assistance in this regard, we will be glad to provide the same. Please visit the Website of CBEC for a copy of Draft rules.