What is the GST E-way Bill, and how does it work?
The term “e-way bill” stands for “Electronic Way Bill.” The Items and Service Tax introduced the GST E-way bill, which is a document that is used to monitor goods in transit. An E-way bill produced on the GST Portal is required for any taxable person registered under GST who transports goods worth more than Rs.50,000.
For businesses, LEDGERS has made E-way bill creation and management a breeze. GST invoices, bills of supply, purchasing invoices, and customer or supplier accounts are all synchronised with the Ledgers E-way bill tool.
At the touch of a button, an E-E-Way Bill may be created and shared with customers or suppliers.
Who should be in charge of generating an E-way bill?
In the following situations, an E-way bill should be generated by a person who has a GST registration and is causing goods movement.
When items worth more than Rs.50,000 are moved to or from a registered individual, an E-Way bill is generated. If the items’ value is less than Rs.50,000, the registered individual can even produce an E-way bill.
Unregistered individuals must also produce an E-way bill. When an unregistered person makes a supply to a registered person, the receiver is responsible for ensuring that all requirements are met.
If the supplier does not have an E-way bill, a transporter transporting products by road, air, rail, or other means must produce one.
Documents required to create an E-way Bill
To create an E-way bill, what papers are required?
- Relevant invoice/bill of supply/challan for the shipment of goods
- In the event of road transport, the Transporter ID or the vehicle number is required.
Transporter ID, Transport document number, and date for rail, air, or ship transport
What is the format of a GST E-way bill?
The E-way bill is divided into two parts: Part A and Part B. Part A of the E-way boll gathers information about the consignment, most commonly the invoice data. As a result, the following information must be provided.
- The recipient’s GSTIN must be provided.
- It is necessary to include the Pin code of the location where the products will be delivered.
- The invoice or challan number that the items were delivered against must be presented.
- It is necessary to specify the value of the consignment.
- HSN code of the goods which are transported should be entered. If the turnover is up to INR 5 crores, the HSN code’s first two digits should be mentioned. If the turnover is more than INR 5 crores, a four-digit HSN code is required.
- The reason for transportation should be predefined, and the most appropriate one needs to be selected.
- The transport document number should be indicated. It includes goods receipt number, railway receipt number, airway bill number.
What is an E-Way Bill?
An E-Way Bill (EWB) is an electronic way bill that may be created on the E-Way Bill Portal for the movement of goods. According to GST Council regulations, every supplier or transporter moving goods worth more than Rs.50,000 (single invoice/bill/delivery challan) in a single vehicle must use a GST e-way bill. To get a GST E-Way bill, the items’ supplier or transporter must first register with GST. From April 1, 2018, this bill will be in effect.
The portal produces a unique E-Way Bill Number (EBN) and assigns it to the registered supplier, receiver, and transport after producing the E-Way bill on the portal using needed credentials.
The E-way bill can be created in one of the following ways by the supplier or the transporter:
- LEDGERS PROGRAMMING SOFTWARE,
- E-Way is a bill gateway that allows you to pay your bills online.
- Through the Android App,
- Site-to-Site Connectivity (through API).
Steps to Create an E-Way Bill
Steps to Create an E-Way Bill on the GST E-Way Portal An e-way bill may be created using the GST E-Way Portal. You’ll need a GST registration and a transporter registration to utilise the platform.
Step 1: Go to https://ewaybill.nic.in/ and input your login information to gain access to the E-Way bill creation platform.
Step 2: Click on the “Generate New” option from the E-Way bill- Main menu page to create a new E-Way bill.
Step 3: for generating E-Way Bills: A new form for generating EWB bills arrives. Fill in the relevant information in the same way you would when producing a GST invoice.
If you’re a supplier, choose outward, and if you’re a recipient, choose inward. Enter the supplier’s and recipient’s information, as well as the GSTIN, if applicable.
When a registered GSTIN is placed in the form’s field, other information is pulled into the blank fields. Please double-check the details before moving on to the next stage
STEP 4: The second part of the page will include the following information that must be filled in:
- Similar to a tax invoice, the Product Name and Description must be filled out.
- The product’s HSN code must be input. To discover the HSN code, go here.
- The products’ quantity and unit.
- The cost of the goods, as well as the tax rate.
- Rates of IGST or CGST are applicable. Inter-state transportation would be subject to the IGST, while intra-state transportation would be subject to the SGST/CGST.
- The approximate distance travelled, as well as the name and ID of the transporter. The legality of the E-Way bill will be determined by this.
Step 5: Create an E-way bill
To create the EWB, click the “SUBMIT” button after filling in all of the required information. The E-Way bill with the E-Way Bill number and the QR Code that contains all the data in digital format will be shown on the Portal. The printed copy of the bill should be given to the transporter, who will be responsible for carrying it during the journey until it is delivered to the consignee.
Setp 6: Consolidate E-way Bill Generation
A consolidated EWB can also be created which contains all the details on the transaction and is also easy to create it by providing just the ‘E-Way bill number’ in the required field. Click on “SUBMIT” to generate the consolidated EWB.
Once an E-Way bill has been produced, it can be modified. Details on the transporter, consignment, consignor, and both parties’ GSTINs can be changed in an existing E-Way bill as long as the bill is not over its expiration date.
Operation of the SMS E-way Bill
since it would be smart to utilise alternative ways if the volume were greater.
Taxpayers can even utilise the SMS e-way bill generating service in an emergency, such as in the middle of the night or while travelling in a car.
Activating the SMS E-Way Billing Service
The taxpayer must first register his or her cellphone number on the GST e-way bill site before beginning to trade. Only mobile numbers registered on the site for a certain GSTIN are enabled and responded to by the system.
The following page appears once the user selects the option “for SMS” beneath the primary option “Registration.”
The cellphone number associated with the GSTIN is presented on the following screen. If necessary, the user can utilise this page to delink or change the cellphone number
The first step is to gain access to the portal.
The taxpayer or transporter must first access the e-way bill site and log in using their credentials.
Follow the steps below to enable the SMS e-way bill feature. Once the mobile phone has been validated and registered, you can produce an e-way bill through SMS.
Who doesn’t require a GST E-way bill at some point?
When transporting the following items, an E-way bill is not required.
- Household and non-domestic exempted category (NDEC) clients will get liquefied petroleum gas.
- Under the PDS, kerosene oil is sold;
- The Department of Posts transports postal luggage;
- Jewelry, goldsmiths’ and silversmiths’ wares, and other articles (Chapter 71); natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71); precious metals and metals clad with precious metal (Chapter 71); precious metals and metals clad with precious metal (Chapter 71); precious metals and metals clad with precious metal (Chapter)
- Personal and home items were used;
- Unworked coral (0508) and worked coral (0509) (9601)
E-way bills are not necessary for transporting goods from a customs port, airport, air cargo complex, or land customs station to an inland container depot or a container freight station for Customs clearance.
When products are transported by a non-motorized vehicle, no E-way bill is necessary.
The e-way bill is not required to be created when following items are being carried;
- Liquor intended for human consumption
- crude petroleum
- Diesel with a high rate of acceleration
- spirit of motion (commonly known as petrol)
- Aviation turbine fuel, natural gas
- An E-way bill is not necessary where there is no supply as defined in Schedule III of the Act.
- Unworked coral (0508) and worked coral (0509)
When goods are transported under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex, and land customs station, or one customs station or customs port to another customs station or customs port, or under customs supervision or customs seal, an e-way bill is not required to be generated.
No E-way bill is necessary when commodities are moved by defence formations under the Ministry of Defense as consignors or consignees.
When transporting empty freight containers, no E-way bill is necessary.
E-way bill production is not necessary if items are being carried for weighing purposes and the distance between the consignor’s business and the weighbridge or vice versa is less than 20 kilometres. The transportation of products, on the other hand, must be accompanied by a delivery challan.
When products other than de-oiled cake are carried as defined in the schedule annexed to notice number. 2/2017-Central Tax (Rate) dated 28.06.2017, an e-way Bill is required.