e-Way Bill: Everything you need to know

With a vision to bring uniformity across the nation, Government of India rolled out the electronic Way bill or e-Way bill in February 1, 2018. Now, transporters will no longer need separate transit passes for moving goods from one state to another as the e-way bill issued to them will be valid throughout India. Adoption of e-way bill in the past two-yearsthe has been encouraging. According to economictimes.com, e-way bill generation used to be around 1.85 million on an average every day during the days before the Covid-19 outbreak. 

e-way bill

What is an e-Way bill?

e-Way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in the Goods and Services Tax Act. It is generated from the GST Common Portal by the registered persons or transporters who cause movement of goods on consignment before the commencement of such movement.

Need for an e-Way bill:

The e-Way bill provisions under GST aims to bring in a uniform e-Way bill rule which will be applicable throughout the country.   

The e-Way bill mechanism will ensure that goods being transported comply with the GST Law and is a useful tool to track the movement of goods and check tax evasion. The new system will help in:

  • Removing the loopholes of the historical way bill system prevailing under VAT in different states- a major contributor to the bottlenecks at the check posts.  
  • Overcoming the challenges of different e-way bill rules for each state which made compliance difficult.  

Who needs to generate & carry an e-Way bill

This system generated bill will have to be carried by every eligible transporter to move the goods from one place to another. Under the Goods and Services Tax rolled out in, inter-state movement of goods beyond 10 km, with a value of Rs. 50,000 and above, will mandatorily require an e-Way bill.

Every registered person, who causes movement of goods, needs to generate the e-Way bill. If the registered person is unable to generate the e-Way bill, the transporter who transports the goods can generate the e-Way bill on behalf of his/her client. If the movement is caused by an unregistered person, he may at his option generate the e-Way bill.

What is the validity of e-Way Bill:

The validity depends upon the distance to be travelled by the goods.

  • For less than 100 Km the e-Way bill will be valid for a day from the relevant issue date.
  • For every subsequent 100 Km thereafter, the validity will be added one day from the relevant issue date.

The Process

  • Part A includes details of GSTIN of recipient, place of delivery (PIN Code), value of goods, HSN code, transport document number (Goods Receipt Number  or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) invoice or challan  number and date, reasons for transportation and transporter id for the respective transporter.
  • Part B comprises transporter details (Vehicle number).

Part-A entry is made by the supplier to temporarily store the document details on the e-Way bill system. Once the goods are ready for movement from the business premises, the registered person shall first furnish the information relating to the transporter in Part B of Form on the government portal and then, the e-Way bill shall be generated by the transporter on the basis of the information furnished by the registered person in Part A of the Form.

This process is seamlessly executed on FarEye’s mobile/web solution which is helping the transporters and the suppliers avoid penalties of non-filing of e-Way Bill, which can go up to 200% of GST value of the invoice.

Need For Digital Logistics To Run Digital India

FarEye empowers businesses by quickly building and deploying the e-Way bill system without worrying about the integration with end hardware or existing/external software setups. It all happens at a speed of light with a simple drag & drop functionality. FarEye platform helps in logistics-process modelling and building applications to make logistics processes efficient and transparent. It’s the quickest way of building applications and is 'language' to create logistics processes.

Benefits of Digital Logistics

  • Operational excellence – Entire operations on mobile
  • Mobility & geo intelligence driven intelligent route-allocation, ETA and live track & trace
  • Automated processes including invoicing, generating bills, visibility and empowerment for the transporter, supplier and receiver.

More information on e-Way bill can be found here.

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