E-Way Bill for Transit Sale or Delivery to Third Party As a carrier, you need to issue a waybill to transport goods from one residence to another. It is a document that delivers details of the consignor, the origin point, the transporter, the consignee, and the destination. The Central Board of Indirect Taxes & Customs necessitates that you upload these details to the Goods and Services Tax (GST) portal and produce an electronic waybill or e-way bill . So, in this blog, we will get all the information about the e-way bill system and its GST rule compliance, which are available below.
What is an e-way bill? An e-way bill is a legally compulsory document to move the consignment to its destination. It is a compliance instrument wherein you upload all relevant information about the shipment to the certified GST portal before shipping it. Per Rule 138 of the CGST Rules, 2017, if you are a registered hauler and are shipping goods of value more than Rs.50,000, you are required to generate an e-way bill. The e-way bill ensures that the goods transported are GST-compliant. It allows applicable authorities to track tax evasion. E-way bill format The generated e-way bill comes with an e-way bill number (EBN), the bill generation date, and your GST number, which is made available to the consignor, the transporter, and the consignee. The next part of the e-way bill consists of two parts:
Part A of form GST EWB-01. This part of the bill contains the GST details of the recipient:
1. GST details of the consignee
2. Invoice or challan number and date
3. Pin code of the delivery place
4. Reason for conveyance
5. Value of the goods
6. Harmonized system of nomenclature (HSN) code
7. Transport document number (goods receipt quantity/railway receipt number/airway bill number/bill of lading number)
Part B of form GST EWB-01 This part of the e-way bill encompasses the vehicle number.
Where can you generate the e-way bill? You need to generate the e-way bill on the GST electronic portal. However, note that this portal is different since the GST common portal is used to file GST returns. All transporters registered under GST are required to register separately on the GST electronic portal for e-way bill generation.
You must offer your business's GST Identification Number (GSTIN) on the e-way GST portal. You will receive a one-time password on your mobile number that is recorded with the GST common portal. After the e-way GST portal validates the OTP, you can create a username and password for the e-way bill portal.
Transporters who do not have a GSTIN must enroll themselves on the e-way bill portal. They receive a 15-digit Single Transporter ID.
Suggested Read: What are the different Transaction Types in e-way bills?
Who generates the e-way bill? The entity that sends or accepts the shipment via their own vehicle, hired transport, railway, air, or water is required to produce the e-way bill.
If you outsource a transportation corporation to transport the goods, the transportation company generates the e-way bill. However, the lorry can only update Part B of the e-way bill. The registered individual must furnish the relevant details for Part A. The transport can update Part A of the e-way bill upon preceding authorization from the consignee or consignor.
The transporter may not provide the conveyance details in Part B if the distance between the consignor and the transporter is at most 50 kilometers. Likewise, both the consignee and transporter need to be in the same public and union territory.
Numerous producers outsource a portion of the manufacturing to a third-party vendor. In terms of the e-way bill, the primary producer is referred to as the principal, and the third party is a job worker. If the principal sends goods to a job worker positioned in another state, either can generate the e-way bill, providing the job worker is also registered.
If an entity carries handicraft goods from one state to another, it must produce the e-way bill regardless of the consignment value. Even if the entity is exempted from registration, they have to produce the e-way bill.
Other important e-way bill GST rules The carrier obligation generates an e-way bill when the consignment's value beats Rs.50,000. Other e-way bill generation rules are as follows:
For multiple consignments of varying values You may have to ship multiple batches at once. Not all of them will have values prodigious Rs.50,000. For the ones that do, you need to produce an e-way bill. Moreover, you can voluntarily generate e-way bills for individual deliveries whose value is less than Rs.50,000. The transporter resounding multiple consignments in one vehicle needs to consolidate the e-way bills by indicating each e-way bill's serial number. The transporter needs to do the same before transportation.
For multiple vehicles transporting the same consignment Often, the batch gets transported via multiple vehicles before reaching its destination. In such cases, the transporters are obligated to update the details of the new vehicle on the e-way bill done on the GST portal.
Non-compliance with e-way bill rules If you fail to generate e-way bills or they are not in harmony with Rule 138 of the CGST Rules, 2017, anywhere necessary, you are accountable for the following:
Penalty Per Section 122 of the CGST Act, 2017, you are answerable to pay whichever is greater between the two:
1. Rs.10,000 in penalties for conveyance of your goods without the e-way bill
2. The eventual tax amount is evaded as a result of not complying with GST rules.
Consignment detention/seizure Per Section 129 of the CGST Act, 2017, the establishments can detain or seize the consignment in shipment for not being GST compliant.
E-way bill exemption You need not generate an e-way bill for the following:
1. Consignment value less than Rs.50,000
2. Conveyance of specific goods stated in Annexure to Rule 138(14) of CGST Rules, 2017
3. Goods elated via non-motorized conveyance
4. Goods are transported from the airport, air cargo compound, port, and land customs station to a container freight station or an inland ampule depot for clearance from the Customs subdivision.
5. Movement of goods within specific parts stated under Rule 138(14)(d) of the SGST Rules, 2017
Suggested Read: Can You Generate an E-Way Bill Without a GST Number?
ConclusionAn e-way bill (EWB) isn't mandatory for every single delivery challan. It depends on the value of the goods actuality transported: EWB Required: If the consignment value (on a single invoice/bill/challan) exceeds Rs.50,000 (in a state) or Rs.1 lakh (interstate), an EWB is required.
An e-way bill (EWB) is compulsory if the consignment price (within a state) or more than £ 1 lakh (medium state). It ensures compliance with GST rules and even transport of goods. Generating the e-way bill can be time-consuming, but the webpage generators of the swipe make it quickly and easily. Can reduce logistics without any problems. Whether you are a small company or a large enterprise, swipe invoicing ensures the compliance and efficiency of the swipe.
FAQs 1. What is the meaning of in transit in an e-way bill? If the transporter wants to range the e-way bill, he needs to state whether the goods are in transit or in movement. In shipment, the goods can be on the road or in the warehouse. When selecting "In Transit," address particulars of the transit place are required.
2. Can we generate an E-way bill after delivery? The e-way bill is compulsory only at the time of delivery of goods. So, if the invoice is high but the goods have not yet been delivered, then Part A can be made on the e-way bill, and Part B details can be entered later on upon delivery. The cogency of the e-way bill begins when Part B is entered.
3. What is the difference between waybill and delivery? Proof of delivery without pricing data.Transport instructions and documents to track goods, not a title file.
People Also Ask 1. Can an e-way bill be generated with a delivery challan? Yes, an e-way bill can be generated against a delivery challan if goods are being transported for reasons other than sale, like job work, return, or repair .
2. How to generate an e-way bill for sales? Enter invoice details, GSTIN of supplier and recipient, transport details, and vehicle number on the e-way bill portal to generate it for sales.
3. Can bill to and ship to be different? Yes, the ‘bill to’ and ‘ship to’ can be different; the e-way bill should reflect the actual recipient transporting the goods .
4. Is delivery challan not for sale?
Yes, a delivery challan is used when goods are transported without a sale , such as for job work, sample transfer, or return of goods .
5. In which situation is an e-way bill not required? An e-way bill is not required for goods transported:
Within the same city below ₹50,000 value , By non-taxable persons , For personal use , or For exempted goods as per GST rules .
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