GST Software: Everything You Need To Know About E Way Bills

GST Software: Everything You Need To Know About E Way Bills

Before GST, state tax was levied on the inter-state sales of goods and services. And a part of it was shared with the central government. This old tax regime was complex and ambiguous, thus GST was implemented. Under this new tax system, businesses can avail goods and services outside of their states without paying additional taxes, all they need to have is an e-way bill to transport goods inter-state or within the state. 

In this blog, we will answer your questions like, what is the e-way bill, who can generate an e-way bill, and how to generate an e-way bill in detail. Also, you will know how GST software can help you generate gst e-way bills easily. So, let’s get started.

What is eWay Bill? 

What is eWay Bill? 

Under the GST tax regime, the process and procedure to get authority for the movement of goods are prescribed in the GST e-way bill rules. E Way Bill or Electronic Bill is a document with a unique bill number valid for a particular consignment. 

The implementation of the e-way bill was deferred initially to give more time to businesses, institutions, and the government to make necessary preparations for its implementation.

Latest Updates On eWay Bills 

Following are the latest updates on e-way bills online: 

29th August 2021 

From 1st May 2021 to 18th August 2021, e-way bills will not get blocked due to failure to file GSTR-1 or GSTR-3B for March 2021 to May 2021. 

4th August 2021

E-way bills will get blocked due to non-filing of GSTR-3B from 15th August 2021. 

1st June 2021 

  1. The e-way bill portal released a notification clarifying that suspended GSTIN cannot generate an e-way bill. However, they can get an e-way bill generated as a transporter or recipient. 
  1. A new mode of transport was updated namely ‘Ship/Road cum Ship’ to facilitate initial movement of goods via roadways to reach sea port for the due course of shipment. With this update, an option to add vehicle number gets activated. 

18th May 2021 

The Central Tax department notified that blocking of GSTIN e-way bill generation will now onwards be limited to supplier’s GSTIN if defaulted. It will not affect neither transporter’s nor recipient’s GSTIN. 

Prerequisites To Generate E Way Bills Online 

  1. Entity should be registered on e-way bill portal
  2. The generator should have invoice/delivery challan handy 
  3. Transporter ID or vehicle no., if the goods are being transported via roadway
  4. Transport ID, transport document number with date, if the goods are being transported via rail, air or ship  

When Do You Need eWay Bills 

When the invoice value of goods in transport is greater than Rs. 50,000 (either each invoice or the sum of all invoices in transport) in the following cases you need a valid e-way bill. 

  • Goods are in supply 
  • Goods are in other than supply (e.g return) 
  • Inward from unregistered entity 

For the above purpose, below are the cases of supply: 

  • Goods transported against the payment within the business course
  • Goods transported against the payment outside of business course
  • Goods transported without payment 

Thus, you need to generate e-way bills online for these cases. For the notified goods you require an e-way bill even if the invoice value is less than Rs. 50,000, which is: 

  • Inter-state transport of goods by Principal to registered/unregistered job worker 
  • Inter-state transport of handicraft goods by an entity exempted from GST

Cases Where eWay Bill Is Exempted 

Following are the cases where e-way bills are not required: 

  • Empty cargo containers are being transported 
  • Goods exempted from the e-way bill in a particular state or union territory 
  • Mode of transport is a non-motor vehicle 
  • Goods transported under the supervision of the Customs department or Customs seal 
  • Goods transported under the supervision of Customs Bond to ICD from one custom checkpoint to another 
  • Goods bought or sold by the Ministry of Defense 
  • Goods sent for weightage to a weighbridge within 20 km of the location of business accompanied by a delivery challan 
  • Goods transported via railway in the case where the consignor is the Central government, State government, or local authorities 
  • Cargo in transit to or from Nepal or Bhutan 
  • Goods are transported from an airport Customs port or air cargo complex or land customs station to Inland Container Depot or Container Freight Station to get clearance from Customs.  

Validity Of eWay Bill

Validity Of eWay Bill

The validity of an eWay bill depends on the distance to be traveled by goods. Following are the conditions for the validity of eWay bills. 

Type of conveyanceDistance to be traveledValidity
Other than Over oversized cargoLess than 200 kms1 day
For every additional 200 kms there ofAdditional 1 day
Oversized cargoLess Than 20 Kms1 day
For every additional 20 Kms thereofadditional 1 Day

One can extend the validity of e-way bills if need be. The generator of the e-way bill is provided with 8 hours of room before and after the expiry of the e-way bill within which it can be extended. 

Over To You

So this was all you needed to know about e-way bills. We hope after reading this article you are well-informed on the same. Now if you are looking for the easiest way to generate for your business then sign up with Munim – India’s best GST software. You can generate e-invoice and e-way bills in just a few clicks. Contact us to know how it works. 

FAQs 

Q. How to generate e-way bills?  

Ans. 

Step 1 – Login to the e-invoice portal

Step 2 – Go to ‘e-way bill’. Click on ‘Generate e-way bill’

Step 3 – Select any option from IRN, date, and Acknowledgement no., and add the data for the selected option. 

Step 4 – Then enter the Transporter ID, Transporter name, and approximate distance to be covered. 

Step 5 – In the next step, enter Vehicle no. and Transporter doc no., and click ‘Save’ 

Step 6 – Once the e-way bill gets generated with a unique 12-digit number, save it in a PDF or JSON file. 

Q. What is the minimum invoice amount for an e-way bill? 

Ans. 

Rs. 50,000 is the minimum amount for which an e-way bill is required 

Q. How much will be the penalty if I fail to produce an e-way bill? 

Ans. 

Rs.10,000 will be the minimum amount of penalty if you fail to present e-way bills. 

Q. What would be the validity of the e-way bill? 

Ans. 

The E-way bill will be valid for 24 hours up to 200 km. In case of oversized cargo, it will remain valid for 24 hours up to 20 km. 

Q. Can we extend the validity of e-way bills? 

Yes, transporters can extend the validity of e-way bills. 

Q. Who can generate an e-way bill? 

Ans. 

The consignee, consignor, or transporter can generate e-way bills. 

GST Software: Everything You Need To Know About E Way Bills

About the author

Mehul is a content writer with a heart of nomad. He is currently working with The Munim Inc. as a content writer and he is passionate about Quantum Mechanics, Christopher Nolan's movie and Traveling. His weekends are well spent with his Golden Retriever recharging him with cuddles and strolls.

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