Introduction: Under GST it has been provided that assessee or in some cases transporter is required to generate e-way bill if transaction amount is exceeding prescribed limit and transaction involves movement of goods. It is important to know that what are the consequence where e-way bill is not generated? What is the time limit for which e-way bill will be valid? In this article we will cover all the provision relating to e-way bill.
What is e-way bill and when it is applicable?
With effect from 1st June, 2018 it is mandatory to generate e-way bill in case there is movement of goods from one place to another place (inter-state movement, i.e. between two states or between union territory and state or between two union territories.) and consignment value is more than Rs. 50,000. Therefore, any registered person cannot transfer goods in vehicle if value of such goods is exceeding Rs. 50,000/-.
E-way bill will be required even if supply is relating to taxable goods or non-taxable goods; it will also be applicable in respect of transfer from one branch to another or when goods are been given for job-work. Also, e-way bill will be required in case where purchase is from unregistered dealer.
Simply, e-way bill is required in case of movement of goods whether it is due to supply or due to reasons other than supply or in respect of inward supply from unregistered person.
Whether there is any exception to above transaction limit?
Yes, in case even if value of supply is not exceeding the above specified limit than also e-way bill is required when it is Inter-State movement of Goods by the Principal to the Job-worker or Inter-State Transport of Handicraft goods by a dealer.
Whether e-way bill can be generated for lower than monetary value specified above on voluntary basis?
Yes, if assessee wants he can generate e-way bill for lower monetary value (i.e. less than Rs. 50,000/-)on voluntary basis.
Who is required to generate e-way bill?
(a)Registered Person will be required to generate e-way bill in case where there is a movement of goods of more than Rs 50,000 in value.
(b) Unregistered Persons–Where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if he is supplier. Therefore, in such case registered person will be required to generate e-way bill.
(c) Transporter– Even transporters who are carrying goods by road, air, rail, etc. needs to generate e-Way bill if the supplier has not generated e-way bill. In such cases he will require authorisation from registered person and even if there is any lapse in while filling details than registered person will be liable for such lapse.
What if transporter is not registered?
In case if transporter is not registered under GST, he is required to obtain transporter ID from e-way bill portal for generating the e-way bills. Transporter ID is a unique identification number allotted to transporters not registered under GST. Supplier/consignor has to mention the transporter ID on the e-way bill which will enable the transporter to update the vehicle number later while moving the goods actually. Further such unregistered transporters have to mention transporter ID on the e-way bill instead of GSTIN number.
What if transporter fails to comply above e-way bill provision?
In case if transporter is required to generate e-way bill and he fails to comply above provision than in that case he may face penalty of Rs 10,000 or tax sought to be evaded (wherever applicable) whichever is greater, and further he will be liable for confiscation of goods and seizure of vehicle.
What will be validity of e-way bill?
|Type of conveyance
|Other than Over dimensional cargo
|Less Than 100 Kms
|For every additional 100 Kms or part thereof
|Additional 1 Day
|For Over dimensional cargo
|Less Than 20 Kms
|For every additional 20 Kms or part thereof
|Additional 1 Day
*Over Dimensional Cargo mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules 1989 made under the Motor Vehicles Act, 1988.
Whether e-way bill is required to be generated in case movement of empty cargo containers?
No, in such case exemption is provided therefore, e-way bill will not be required.
Whether there is any special exemption in case supplier is located in Special Economic Zone (SEZ)?
There is no exemption which is given to supplier located in Special Economic Zone (SEZ); Therefore, if registered person who causes movement of goods shall be responsible for the generation of e-Way bill as per the above rules.