The tax reforms of India were diversified and very complex, until 2017. On 1st July 2017, GST was introduced. The main objective of this was to implement a common and simple taxation policy and to eliminate different indirect taxes. Also a common rate of tax was implemented in the entire country. The introduction of GST brought many other factors with it. These factors were a necessity for the proper implementation and working of GST. One of those factors that is being used very commonly and eases the work of businessmen is the E-Way Bill.
The E-Way bill is no longer seen as a factor that complements GST. It has now become the soul component of many businesses that perform the movement of goods.
What is an Eway Bill?
E-Way bill also known as the Electronic-Way bill is a document that is now necessary for the movement of goods from one location to another. We can say that the concept of the E-Way bill has prevailed after the introduction of GST. The main objective of the E-Way bill under GST is to ensure fast movement of goods across different locations. It also ensures that the government gets all the information about the goods that are being moved.
The government still permits you to transport goods without an E-Way bill too. However, in that case, the value of goods should not be any more than 50,000 rupees. For those who are new to the business can rely on good cloud based accounting software for such information.
When to Generate?
Every business whether proprietorship, firm, or company, involved in the movement of goods should know this information. Most of us just assume that it's mandatory to generate an E-Way bill whenever there is a movement of goods.
However, there are other conditions too, such as
1. The value of the goods they are being moved should be more than 50,000 rupees.
2. The movement should take place with the use of a vehicle.
3. The purpose of movement can be to make "supply" or "return of supply"
4. In case of inter-state movement, even if the value of goods is below 50,000 rupees.
5. Interstate supply of goods which are considered as "handicrafts.”
Who Should Generate?
The liability of generating an E-Way Bill may fall upon different persons under different situations. The major generators of an E-Way bill can be:-
1. Registered Person
The registered person becomes liable for generating an E-Way bill if the goods are being moved by him. Still, there are some cases in which this liability falls upon the transporter.
2. Unregistered Person
Even the unregistered persons are liable for generating an E-Way bill in case of supply of goods. In cases where the supplier is unregistered and the receiver is registered, the liability falls upon the receiver.
The transporter may not be liable for generating an E-Way bill if it's already been generated by the supplier.
Cases When E-Way Bill is Not Required
As it's already been mentioned above there are some cases when the generation of an E-Way bill is not mandatory. The most common case is when the supply is in the same state and the value is below ₹50,000. The second case is when the goods are being moved without the use of a motor vehicle. The same would be applicable If the value of goods exceeds ₹50,000 but a vehicle is not being used.
There are some other cases too such as:-
1. When the movement takes place through custom ports or custom Airways.
2. Goods being transported under a custom seal.
3. For transportation of empty containers, etc.
Status of Implementation Across India
The law of GST is implemented all over the country. This was done to nullify the differences in tax rates in different parts of the country. It also helped to decrease the average transportation time for the supply of goods from one part of the state to another.
Along with GST the E-Way bill was also implemented in the entire country. A business has to undergo the rules of the E-Way bill if it wants to supply goods in different states. However, there are still some exemptions for the ease of citizens.
How to generate an E-way Bill
E-Way bill generation is not a big task. It can easily be done through the Common E-Way bill portal. The basic knowledge that you need to have is about your products, their quantity, and time of departure. After having all this information, you can proceed further and log in on the Common Portal. In some cases, only a single E-WAY bill is generated and in some cases, it's generated in two parts. An E-Way bill can also be generated on a mobile phone through SMS.
Being a new businessman a person may lack information and need guidance. In that case, you can use a reliable Accounting Software for Small Business. Doing so will help you in each step of the process.
Validity of E-way Bill
Case 1- When over dimensional cargo is not used.
- If the distance is less than 200 Kilometers then the validity is for 1 Day. The validity will increase to 1 day with an increase in every 200 Kilometers.
Case 2- When over dimensional cargo is used.
- If the distance is below 20 Kilometers then the validity is for 1 day. There will be an increase of 1-day validity for every next 20 Kilometers.
Some documents should be uploaded on the common portal for the successful generation of an E-Way bill. These documents are:-
1. Bill of Supply/ Invoice/Challan that is issued for supply.
2. Transporter ID and vehicle number in case of on-road transportation.
3. Transporter ID, and the documents of transport in case of transportation through railways, airways, and waterways
E-Way bill generation is not a big task, especially for those who have experience in the field. Also, an experienced individual can have much more knowledge about the laws and rules of the E-Way bill.
The E-Way bill plays a vital role in implementing the GST reforms. It's a factor that is very necessary for national development. It has reduced the rate of illegal supply of goods. Also, it has helped the businesses by reducing the transport time.