The Goods and Services Tax (GST) implemented by the Indian Government and in action since the 1st of July, 2017 has changed the dynamics of taxation in India. What was previously taxed at every level is now unified, making it easier to track while also reducing the overall taxation costs. Filing returns have become far more straightforward for businesses, and GST has been hailed as one of the best economic decisions in recent years.
Previously, for the movement of goods from one state to another, they would have to check at every checkpoint at state borders. This was a hassle and would cause a significant loss of time due to queues. GST does away with this tedious procedure and aims at free movement of goods across the entire nation. For this reason, the E-Way Bill idea was introduced, which must be generated electronically whenever goods worth more than INR 50,000 are transferred from one place to another.
E-way bill Format
It consists of two different parts, A and B.
Part A: This comprises of the GSTIN of the recipient, destination or location of delivery (generally in the form of a pin code), the value of goods to be transported, the HSN (Harmonized System of Nomenclature) Code, and other related details.
Part B: This part is particular to the transporter details, such as Vehicle Number.
Who must all generate the E-way bill in GST?
According to Rule 138 of the CGST Rules, 2017, irrespective of if the goods are transported by Railways, by airplanes or ships, or by an owned or hired vehicle, E-way bill must be generated. In case both the buyer and seller aren’t registered to be able to apply E-way bill, then it is the duty of the transporter to generate one if the value of the goods being transported is greater than INR 50,000 of course.
Two parts exist to each E-way bill.
Part A: This is furnished by the person who is supplying the goods to a particular destination or recipient.
Part B: This part is furnished by the transporter, or the entity transporting the goods.
On the generation of the e-way bill on the online portal, a unique reference number known as e-way bill number of EBN is created and assigned to the particular e-way bill. This EBN must be made available to all the parties involved, irrespective of who applied for the bill itself. The supplier, recipient, and transporter must have this e-way bill number. The e-way bill must be made available to the recipient. This is important because if the recipient doesn’t accept or reject within 72 hours of the details, it is assumed that he has accepted.
Also, a facility has been provided to generate a different e-way bill in the case that goods cannot be transported in the validity period of the old e-way bill.
If goods aren’t transported or moved precisely according to the details present on the e-way bill, then the bill may be canceled online on the portal, but within 24 hours of generation of the bill. If it has been verified according to rule 13B of the CGST Rules, 2017, then it cannot be canceled under any circumstances.