What is the meaning of E way bill ?
The full form of E-way bill means electronic way bill. E-way bill will be applicable to the movements of goods in both inter and intra State Transportation.
To put it simply like the name suggests it is an electronic document generated from the e-way bill portal ewaybillgst.gov.in evidencing movement of goods. It is basically a compliance mechanism under GST wherein by way of a digital interface the person causing the movement of goods (consignor/seller) uploads the relevant information prior to the commencement of movement of goods and generates e way bill on the GST portal.
It contains the following details-
- Name of consignor
- Consignee
- The point of origin of the consignment
- Destination details and
- Route
As per the gst rules, every person registered under GST, who causes the movement of goods of consignment value more than Rs.50000, is required to furnish the details of the said goods in a specified form (e-way bill), before the commencement of such movement of goods.
Under which section e-way bill is required?
The Statutory requirement of e-way bill is covered under Section 68 of the CGST Act & Rule 138 of the CGST Rules, 2017.
What is the date from which e-way bill has been made compulsory?
The system of e-way bill has been made effective from 01.04.2018 for inter state movement of goods. E way bill on Intra-state movement of goods shall be done in a phased manner.
What are the benefits of e way bill ?
The e way bill mechanism has numerous benefits. It will –
- Facilitate faster movement of goods.
- Improve the turnaround time of trucks since the checkpost have been abolished.Thus, will benefit the logistics industry by reducing the travel time and cost as well as increasing the distance travelled.
- User friendly e way bill generating system. This means, there is no need to visit e way bill department for generation of e way bill as this was the major hardship in existing system. The e-way bill can be directly generated online.
- The entire system is online, thus avoiding tax evasion.
How does the e-way bill mechanism works?
Every person who falls under the e-way bill compliance, is required to first register on the common portal. Post that they can generate the e-way bill. Upon generation of the e way bill on the common portal, a unique e way bill number shall be made available to all the three parties,on the common portal i.e.
- The supplier,
- The recipient and
- The Transporter
After filing of Part A of form GST EWB-01, there is a mechanism on the common portal for the other party to see the e-way bill generated against his/her GSTIN.
Now the other party is required to either give acceptance or rejection of such consignment specified in the e-way bill. Please note that, if the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill or the time of delivery of goods whichever is earlier, it will be deemed that he has accepted the details.
Important Note – Update Part B/ Vehicle number
Once the e way bill is generated you cannot edit the e way bill. However, Part B of e way bill in which the Vehicle number is mentioned, can be updated by the transporter. Updation is done in case he is sending goods with other vehicle or due to vehicle damage.