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Everything you need to know about e-way Bill under GST

Know what e-way Bill is and how it works.

Everything you need to know about e-way Bill under GST

New Delhi: The Goods and Services Tax (GST) Council has approved mandatory compliance of e-way Bill for inter-state movement of goods from February 1.

Some states might roll out both inter-state and intra-state e-Way Bill from February 1 on a voluntary basis. The system for e-Way Bill will be available from January 15.

E-way bill for intra-state will be compulsory from June 1, the source added. However, implementation of e-way Bill for intra-state movement will done in a staggered manner from February.

Here is all you need to know about the e-way Bill under GST

What is e-way Bill

E-way  bill  is  an  electronic  document  generated  on  the  GST  portal  evidencing  movement  of  goods.  It  has  two  components -Part A  and Part B.

Part A 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 comprises transporter details (Vehicle number).

As per  Rule 138 of the CGST  Rules, 2017, an e-way bill is required for movement of goods worth more than Rs 50,000. When goods are transported for less than 10 km within the state, the supplier or the transporter need not furnish details on the portal.

Aim of implementing e-way Bill

The e-way bill provisions aim to remove the ills of the erstwhile way bill system prevailing under VAT in different states, which was a major contributor to the bottlenecks at the check posts.  

Moreover different states prescribed different e-way bill rules which made compliance difficult.  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 an effective tool to track movement of goods and check tax evasion.

What is the validity of e-way Bill  

The validity of  e-way bill depends on the distance to be travelled by the goods.

For a distance of 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 additional one day from the relevant issue date.