What is eWay bill, How logistics company should gear up with eWay bill.

What is eWay bill?

eWay bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding Rs. 50,000. This is similar to the concept of Transit bill, Bill T used to transportation of goods except that it will eliminate state-wise documentation and ensure faster transit of goods by doing away with checkposts at state borders..

This has been mandated by the government in Goods and Services Tax (GST) Act.

How to Generate eWay bill?

An E-Way bill is generated through the GST Common Portal  – ewaybill.nic.in – by registered users or transporters who cause movement of goods of consignment. The bill came into effect on April 1, 2018.

Alternatively, eWay bill can also be generated or cancelled through SMS, Android App and by Site-to-Site Integration(through API). The steps to generate and cancel e Way bill via SMS Facility can be read in our blog on “Guide on how to generate eWay bill through SMS

List of details required to Generate eWay bill

The details which are required to generate eWay bill in single or bulk are:

  1. Document No. which can be the Invoice No, Challan No, Credit Note or Bill of entry
  2. Supplier information i.e. Supplier Name, GSTIN and Address {These are pre populated information}.
  3. Buyer information i.e. Party name, GSTIN and Address.
  4. Item Details i.e. Item name, description, HSN Code, Quantity, Taxable value
  5. Transportation details i.e. Transporter name, Transporter ID, Vehicle no, Document no.

After these details are furnished an eWay bill is generated, unique eway bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Key 09 points to understand eWay :

  1. eWay bill can be generated by the consignor or consignee, as a registered person or a transporter of the goods. The unregistered transporter can enrol on the common portal and generate the eWay bill for movement of goods for his clients.
  2. The prerequisite for generation of eWay bill is that the person who generates the bill should be a registered person on the GST portal and should register on the eWay bill portal.
  3. The documents such as tax invoice or bill of sale or delivery challan and the transporter’s ID must be available with the person who is generating it.
  4. The eWay bill is required to transport all the goods except exempted under the notifications or rules. The movement of handicraft goods or goods for job-work purposes also requires eWay bill even if the value of consignment is less than Rs. 50,000.
  5. The validity of the eWay bill is decided by Part B. Based upon the distance travelled by the goods. The validity of bill starts only after Part B is complete. Therefore one has to be careful when filling the vehicle No, Transporter id, Total distance in this section. {We recommend that it should be filled only when transporter info. are complete}. 
    1. Where the movement of goods in Other than over dimensional cargo- For every 100 km covered the validity of eWay bill is 1 day.
    2. Where the movement of goods in Over dimensional cargo- For every 20 km covered the validity of eWay bill is 1 day.
  6. Once generated, the bill cannot be edited or modified. Only Part-B can be updated.
  7. Any person can verify the authenticity or the correctness of the eWay bill by entering EWB No, EWB Date, Generator ID and Doc No in the search option on the EWB Portal.
  8. If multiple invoices are issued by the supplier to recipient, that is, for movement of goods of more than one invoice of same consignor and consignee, multiple EWBs have to be generated. i.e. for each invoice, one EWB has to be generated, irrespective of the fact whether same or different consignors or consignees are involved.
  9. If validity of the bill expires, the goods are not supposed to be moved. However, one can extend the validity of the eWay bill if the consignment is not reaching the destination within the validity period due to exceptional circumstances  such as natural calamity, law and order issues, trans-shipment delay, accident of conveyance, etc.
  10. Read our blog on “what if the validity of eWay bill expires during transit”.

Conclusion

Through this summary we have tried to explain the key steps involved in generating the bill, also this blog will help you in keeping the checklist ready that is required to generate the eWay bill.

If you have any query on eWay bill please mail us at Bhawana.joshi@gst-insights.com

Thanks

 

Ravi

 

 

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