e-way bill under GST

Guide to e-way bill rules & compliance under GST

e-Waybill compliance has been a nightmare for suppliers in the pre-GST era. Supply of goods cannot take place without obtaining these ‘waybills’ from VAT authorities. Waybill is nothing but a physical document that allows movement of goods. The compliance around waybills has caused restricted movement of goods across states. And this is one anomaly we hope GST will rectify.

The CBEC has released electronic way bill or e-way bill rules. The rule can be download here ewaybill-rules.

What is an e-way bill?

E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A ‘movement’ of goods of more than Rs 50,000 in value cannot be made by a registered person without an eway bill.

E-way bill will also be allowed to be generated or cancelled through SMS.

When an eway bill is generated a unique eway bill number (EBN) is allocated and is available to supplier, recipient, and the transporter.

When should an e-way bill be generated?

E-way bill will be generated when there is movement of goods –

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

What is a ‘supply’ in case of e-way bill?

A supply may be –

• Supplied for a consideration (means payment) in the course of business
• Supplies made for a consideration (payment) which may not be in the course of business
• Supplies without consideration ( without payment)

Basically supply means –

Sale – sale of goods and payment made

Transfer – say branch transfers

Barter/Exchange – Payment by goods instead of money.

Therefore, e-way bills must be generated on the common portal for all types of movements.

Who can generate e-way bill?

• E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. Registered person or the transporter may choose to generate and carry e-way bill even if value of goods is less than Rs 50,000.
• Unregistered persons or his transporter may also choose to generate e-way bill. Which means eway bill can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered person to a registered person, the receiver will have to do all the compliances as if he’s the supplier. 

An e-way bill can be generated by

Who	When	Part	Form
Every Registered person under GST	Before movement of goods	Fill Part A	Form GST INS-1
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods	Before movement of goods	Fill Part B	Form GST INS-1
Registered person is consignor or consignee  and goods are handed over to transporter of goods	Before movement of goods	Fill Part A & Part B	Form GST INS-1
Transporter of goods	Before movement of goods	Fill form GST INS-1 if consignor does not.
Unregistered person under GST and recipient is registered.	Compliance to be done by Recipient as if he is the Supplier.

A registered person may submit a tax invoice in Form GST INV-1 on the common portal. If a registered person has uploaded the invoice, information in Part A of Form GST INS-1 is auto populated from GST INV-1.

Information in Part A of Form GST INS-01 is used for preparing GSTR-1.

Validity of an e-way bill

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of eway bill-

Distance	Valid from	Valid for
Less than 100km	Date & time at which e-way bill is generated	1 day
100km to 300km	Date & time at which e-way bill is generated	3 days
300km to 500km	Date & time at which e-way bill is generated	5 days
500km to 1000km	Date & time at which e-way bill is generated	10 days
1000km or more	Date & time at which e-way bill is generated	15 days

The Commissioner may extend the validity period of e-way bill for certain categories of goods.