E-Way Bills Demystified: Everything You Need to Know
E-Way Bills have become integral portions of the GST framework of India. They are used for transporting goods and ensuring tax compliance. Following is a comprehensive guide on what an E-Way Bill exactly is.
What is E-Way Bill?
E-Way Bill is a document raised for the conveyance of consignment valued more than a certain amount (at present Rs. 50,000) from one place to another. It contains information like goods information, consigner information, consignee information, and vehicle details.
When is an E-Way Bill Generated?
E-Way Bills are generated in the following cases:
Inter-State Shipment: When the consignment is moved from one state to the other.
Intra-State Movement: E-Way Bill is compulsorily required for some states for intra-state movement.
Use of More than One Mode of Transportation: When two or more modes of transportation are used for moving goods.
E-Way Bills Essential Features
Validity: The validity period of an E-Way Bill depends on the distance travelled:
Less than 100 km within one day
For every successive 100 km: on one more day
Cancellation: An E-Way Bill can be cancelled within 24 hours of its generation if the goods haven’t moved yet.
Auto-Generation: E-Way Bills can be auto-generated once certain conditions are met and the process is quite simplified.
How to Get an E-Way Bill
Registration on the E-Way Bill Portal: To create an account, the registered user needs to log onto the official E-Way Bill portal: ewb.gst.gov.in.
Enter Details: Fill in the following details such as GSTIN of supplier and recipient, value of goods, HSN code, and vehicle number
Generate Bill: The form submitted will generate the E-Way Bill. An E-Way Bill Number or EBN will be generated.
Consequences of Non-compliance
Failure to Generate an E-Way Bill when Due will lead to:
Fines : Penalty may be levied under the GST laws.
Detention of Goods: Goods may be detained or seized while in motion.
Common Errors to Avoid
Incorrect Information: Ensure to check on all aspects before making any submission to avoid problems.
State Specific Rules: Every state has special rules concerned with E-Way Bill that is mandatory to observe.
The requirement of the E-Way Bill is actually something very fundamental for any business; to ensure that everything goes in proportion, whether in easing or hastening the process, without risking a penalty. Being properly generated and on time, an E-Way Bill lets businesses move goods easily and never lets tax regulations hinder their production.
