GST - Eway Bill

Mr. A: Good Day Sir, how are you?

CA: Hi Mr. A, I am doing fine, how about you?

Mr A: I am doing fine. Recently I am hearing much about the E-Way Bill needs to be issued for every dispatch, what is this and how this can be issued?

CA: Mr. A, Yes, under GST for movement of goods and E-Way Bill needs to be generated electronically. The conditions to generate E-Way Bill are:

i) If the movement of goods is in excess of 50,000 INR then an E-Way Bill needs to be generated from the GST portal.

ii) E-Way Bill needs to be generated even if removal of goods is not supplied like sending goods to job worker

iii) If goods are handed over to transporter and E-Way Bill is not generated then transporter can also generate E-Way Bill from GST portal. This facility of generation of E-Way Bill will also be made available through SMS.

On the generation of E-Way Bill, a unique number will be issued and it will be made available to supplier, recipient, and transporter. Further, the validity of E-Way Bill depends on the distance of movement of goods like for 0 to 100 KM distance, a generated E-Way Bill will be valid for 1 day etc.

The E-Way Bill form is GST INS 01.

Mr. A: Ok, getting it now. But what will happen if am purchasing goods from an unregistered person?

CA: Hi Mr. A, in such cases either registered recipient or transporter can generate an E-Way Bill.

Mr. A: Isn't it this process makes the transported a complex job?

CA: Mr. A, under GST, every supply will be tracked and hence such a system is developed. To ease this process further following steps are also mentioned:

i) The government can mandate certain class of transporter to use Radio Frequency Identification Device (RFID) on their vehicle. With this RFID the E-Way Bill can be mapped for faster detection and clearance of vehicle at check post.

ii) The officer should the upload the summary of every inspection on common portal within 24 hours.

iii) If a vehicle is detained for more than 30 minutes, then a transporter can update such incident on the common portal in form GST INS-04.

Mr A: Ok, there are cases where transporters load more delivery items of more than 1 person. In such cases how the E-Way Bill concept will work?

CA: Mr A, When transporter of goods indulges in the transport of multiple supplies then a transporter can create a Consolidated E-Way Bill through form GST INS – 02 by providing details of all individual E-Way Bills.

Mr A: Ok, Thank you :)

GST Eway bill implementation has been deferred for the time being by Government.