Everything about GST E-Way Bill

Everything you need to know about GST E-way Bill

About E-Way bill :-

  • With an aim to introduce uniformity across the states for seamless inter-state movement of goods, the electronic way bill or e-way bill system will be implemented by the government from February 1.
  • The e-way bill requires online pre-registration of goods before transportation under the new GST regime.
  • Under the e-way mechanism, all goods worth over Rs 50,000 will have to be pre-registered online before they are moved for sale beyond 10 km.
  • The e-way bill mechanism has been introduced in the GST regime to plug tax evasion loopholes. Tax evasion was one of the reasons cited by the government for the fall in revenue collection in October.

When the E-Way Bill needs to be generated ?

  • The e-way bill  needs to be generated before the commencement of movement of goods.

When the E-way Bill is applicable ?

  • It is applicable for any consignment value exceeding Rs.50,000. Even in case of inward supply of goods from unregistered person, e-way bill is applicable.

Who should generate E-Way Bill ?

  • When goods are transported by a registered person, either acting as a consignee or consignor in his own vehicle, hired vehicle,railways,by air or by vessel, the supplier or recipient of the goods should generate the e-way Bill.
  • When the goods are handed over to a transporter, the e-way bill should be generated by the transporter. In this case, the registered person should declare the details of the goods in a common portal.
  • In case of inward supplies from an unregistered person, either the recipient of supply or the transporter should generate the e-way bill.

Objectives :  

  • Single e-way bill for hassle-free movement of goods throughout the country.
  • No need for separate transit pass in each state for movement of goods.
  • Shift from departmental-policing model to self-declaration model for the movement of goods.

Earlier Challenges :- 

  • Govt could not keep checks whether taxes are paid or not.
  • Transporters have to carry no. of documents for transportation of goods like Road Permits & Bills etc.
  • Corrupt officers.

Benefits:

  • Taxpayers or transporters need not visit any tax officers or checkposts for generation of e-way bill or movement of goods through states.
  • No waiting time at check-posts and faster movement of goods thereby optimum use of vehicles or resources, since there are no checkposts in GST regime.
  • User-friendly e-way bill system.
  • Checks and balances for smooth tax administration and process simplification for easier verification of e-way bill by tax officers.

When an e-way is generated, a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. As per the schedule of implementation, the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018, the Finance Ministry statement said. Trade and transporters will be able to use it on a voluntary basis from January 16.

E-way bill is generated when there is a movement of goods:

  • In relation to the supply.
  • For reasons other than a supply (say a return).
  • Due to inward supply from an unregistered person.

In this case, a supply can either be :

  • Sale – sale of goods and payment made
  • Transfer – branch transfers for instance
  • Barter/Exchange – where the payment is by goods instead of in money

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