We all know about GST (Goods & Service Tax), an indirect tax on the supply of goods and services in India. All the other taxes except a few were merged in it. It was implemented in the year 2017. Since then, there is only one tax across India.
According to GST rules, transporters have to generate an E-way bill while transporting something from one place to another. It is a type of bill that includes different information. Today, we’ll discuss what E-way bill is & how you can generate it.
What is an E-way bill?
E-Way Bill is a document that is generated electronically. It should be generated while transporting goods, within the state or interstate, of more than 50,000 rupees worth. The transporter must have its physical copy.
All the information about the transporter, sender, receiver and goods is included in this document. So, everyone must carry this document during inter-state or intra-state movements. E-way bill shows the legality of those goods, and they are brought under the government guidelines.
Who should generate E-way bill?
An E-way bill must be generated for smooth transportation of goods. But, there must be a question about who should generate an E-way bill? The people who can generate the E-way invoice are:
Consignor or Consignee: A registered person should generate an e-way bill when the movement of goods is happening in their own or hired mode of transportation.
Transporter: A transporter is that person who transports the goods through the road. The e-way bill can be generated by them as well.
Unregistered Person: When an unregistered person is handing over the goods to a registered recipient, then he/she can also generate e-way bill by following the compliance procedure.
So, each one of the above people is eligible to generate e-way bill.
Required Details for E-way Bill.
There are some details required for the generation of an E-way bill. Those details are divided into two section:
- GSTIN of Recipient
- Place of Delivery – PIN Code of Place
- Invoice/Challan Number, Date and Value of Goods
- HSN Code – At least two-digit of the HSN Code
- Reason for Transport – Supply, Export, Import, Job Work, etc.
- Transporter Doc. No – Document No provided by the transporter.
The number of vehicle in which goods are transported.
Validity of E-way Bill.
An e-way bill is valid for several days. The validity of the e-way bill depends on the distance that needs to be covered by the goods. When the distance is less than 100 kms, it is valid for one day. On the other hand, one day is added to the validity for every additional 100 kms.
How to generate E-way Bill?
Now, you must have known the things required to generate an e-way bill. But, there is a simple way to use those details and generate the bill. Before moving on to the steps, you must make sure that you have all the required information. Here are steps to generate an e-way bill:
Step 1: Login into E-way Bill Portal.
Step 2: After successfully logging in, you have to generate “Section-A” of E-way-bill by filling in the required details
Step 3: Now, you have to generate GST Compliant Invoice or Delivery Challan. Then, update the E-way bill number in the invoice.
Step 4: Once the invoice is updated, you have to generate “Section-B” of the E-way bill. The vehicle number has to be updated in this bill.
After all of the above steps are done, the transporter or supplier will update the vehicle number. Then, the goods will be all clear to be moved and carried to their destination.
Exception to Not Generate E-way Bill.
There are some exceptional situations when you don’t need to generate an e-way bill. So, you don’t need to generate an E-way bill when:
- The mode of transport is a non-motor vehicle.
- Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
- Transporting some specific goods.
- Value of the consignment is less than Rs 50,000.
Result of Not Generating E-way Bill.
Suppose anyone is found moving goods without generating an e-way bill under any case apart from the exceptional situation. Then, they can be charged a penalty by the officials. The amount of that penalty will be ₹ 10,0000. Apart from that, the vehicle and goods can also be detained & seized.