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GST e-way Bill

Economy and Banking Awareness plays crucial role in the General Awareness Section of Bank, SSC, and UPSC exam. You all must be preparing very hard for upcoming exams and have recently given few. In recently held RBI Grade B Exam, we have seen that most of the questions, in fact more than 20 questions were from Banking Awareness. Check RBI Grade B Exam Analysis. So, to further update you all about banking awareness, today in this blog we’ll talk about GST e-way Bill, as you may find questions related to it in upcoming IBPS RRB PO, IBPS RRB OA, Indian Bank PO, IBPS PO, IBPS Clerk, RBI Grade B, etc.

GST e-way Bill

Before starting with GST e-way Bill, let us first understand what waybill, e-way Bill, and GST is.

Waybill

A waybill is a receipt or a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. The details include name of the consignor, consignee, the point of origin of the consignment, its destination, and route.

E-Way Bill

The Electronic Way Bill (E-Way Bill) is a compliance mechanism wherein the person causing the movement of goods uploads the relevant information before the commencement of movement of goods and generates e-way bill on the GST portal by way of a digital interface.

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GST

GST stands for Goods and Services Tax and is also known as Constitution (122 Amendment) Bill, 2014.

It is a single value-added tax levied at all points in the supply chain of goods and services. Credit is allowed for any tax paid on inputs. It would apply to both goods and services in a comprehensive manner. GST is best explained by this one line:

One Country , One Tax , One Market .  

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GST e-way Bill

It is an electronic documentation giving details of the movement of goods and must be carried by transporters for any consignment exceeding Rs 50,000 in value (According to Rule 138 of the CGST Rules, 2017). It can be generated from the GSTN set up for the e-way bill system by the transporter before the movement of goods begins. It has two Components –

Part A- It comprises details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and reasons for transportation.

Part B- It comprises the details of the transporter (Vehicle number).

  • GST e-way bill is to be generated by the consignor or consignee himself if the transportation is being done in own/hired conveyance or by railways, by air or by Vessel.
  • If the goods are handed over to a transporter for transportation by road, E-way bill is to be generated by the Transporter.
  • Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than Rs.50,000/- it shall be the responsibility of the transporter to generate it.

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Why is it important to generate the GST e-way Bill?

  • To ensure that goods being transported comply with the GST Law.
  • To track movement of goods and check tax evasion.

Who can generate GST e-way Bill?

The consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill.

The unregistered transporter can register on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.

What is the validity of GST e-way Bill?

The validity of e-way bill depends on the distance to be travelled by the goods. For less than 100 Km of distance, the e-way bill will be valid for a day from the relevant date. For every 100 Km thereafter, the validity will be additional one day from the relevant date. The “relevant date” means the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.

In general, e-way bill’s validity cannot be extended. However, the Commissioner may extend the validity period only by issuing notification for certain categories of goods.

GST e-way Bill

Cancellation of GST e-way Bill

If the GST e-way Bill has been generated under this rule, but the goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill.

However, an e-way bill cannot be cancelled if it has been verified in transit as per the provisions of rule 138B of the CGST Rules, 2017.

What are the consequences of non-conformance to GST e-way Bill rules?

If e-way bills are not issued according to the provisions contained in Rule 138 of the CGST Rules, 2017, it will be considered as contravention of rules. As per Section 122 of the CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded (wherever applicable) whichever is greater.

As per Section 129 of CGST Act, 2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.

Conclusion

GST e-way Bill, thus, ensure that relevant information is uploaded before the movement of a consignment, both intra-state as well as inter-state. In future, the government may use the e-way bill as an effective mechanism for reconciling the movement of goods with GST returns, which would further help in safeguarding its revenues. Also, the GST e-way Bill would effectively dissolve all non-tariff barriers, such as check posts and entry tax, so that movement of goods across states is free of all hindrances, thereby reducing transit time and enhancing supply chain efficiencies. 

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That is all from us in this blog. Hope you find the information useful.

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