E-Way Bill:: De-Mystifying the Filing requirements

Under the new GST regime, the new frontier for Transportation and Logistics “E-way bill” is set out to be rolled out effective 1st February 2018. The e-way bill is a key element of GST, aimed at creating a common market and consolidating an array of state taxation. One e-way bill is valid for end to end movement nationally, thereby doing away with multiple state permits /e-way bill that existed earlier.

An e-way bill is required for movement of goods worth more than Rs.50,000/- invoice value. This is compulsory effective 1st February 2018 for all inter-state truck movements. For intra state goods movement, it is required for transport beyond 10 km. Fifteen states have agreed to implement it for intra state goods (sales) movement as well. Nonetheless , intra state e-way bill will be compulsory from June 1st, 2018

With multiple stakeholders involved in the movement of goods – Consignor, Consignee, and Transporter who should be generating the E-way bill?

The E-way bill ‘Form EWB-01’ contains two parts. Part-A contains the details of the consignment and Part-B contains the vehicle number in which the goods are transported.

Who should furnish the details in Part-A and Part-B of Form EWB-01?

The responsibility to generate the E-way bill differs according to business scenarios. For eg, you may transport the goods on your own vehicle or you may hand over the goods to the transporter and so on. Please find below; the responsibility to generate E-way bill under different business scenarios:

Business Scenario Who Should Generate E-way Bill Furnishing of Details on EWB-01 – Part-A or Part-B
Goods are transported by consignor using his own vehicle Consignor Both Part-A and Part-2 needs to filed by Consignor
Goods are transported by consignor in a hired vehicle or railways or by Air * or Sea * Consignor Both Part-A and Part-B needs to filed by Consignor
Goods are transported by the consignee in his own vehicle Consignee Both Part-A and Part-B needs to filed by Consignee
Goods are transported by consignee in a hired vehicle or railways or by Air or Vessel Consignee Both Part-A and Part-B needs to filed by Consignee
Consignor (Registered) hands over the goods to a transporter (registered) Transporter The Consignor will furnish the details in PART-A and Transporter will furnish PART-B
Goods are transported by Consignor (unregistered) in his own vehicle or hired vehicle to the Consignee who is registered Consignee The Consignee will furnish the details in PART-A and Transporter will furnish PART-B. However, at his option, an unregistered consignor can also generate E-way bill.
Consignor (unregistered) hands over the goods to a transporter. This is to be supplied to a Consignee (Registered) Transporter The Consignor will furnish the details in PART-A and Transporter will furnish PART-B. However, at his option, an unregistered Consignor can also furnish the details in PART-A of EWB-01.
* GST Exemption for Transportation of goods from India to a place outside India (Exports) by air or sea until 30th September 2018

The e-way bill mechanism has been introduced in the GST regime to plug tax evasion loopholes. To ensure ease of doing, GSTN has linked e-way bill with filing.

Industry concerns:

  • Glitches in the portal
  • Delay due to vehicle breakdown or stoppage by state officials.

The GSTN department has clarified that consignor or transporter will be able to report delays of more than 30 minutes in an online form and file the same by reference to the invoice number.

Additionally Companies / consignors have been given the option of uploading their invoices when they get their e-way bills, which would directly be filed with GSTR1.

Since the advent of testing of the e-way bill from 16th January 18, ValueShipr (www.valueshipr.com) has been generating e-way bills and is ready for the change.

You can call 8655012255 for your transportation needs with support on e-way bill.