What is E way Bill?
E way Bill is a document which has to be mandatorily generated online on https://ewaybill2.nic.in/ewaybill_nat1/ to authorize movement of goods from one place to another by a Registered Dealer. The process of it’s generation was introduced in 2017 when the GST Reform took over the VAT, Service Tax and other miscellaneous Indirect taxes.
When is E way Bill Mandatory?
Chapter XVI Rule 138 states that
Information has to be furnished prior to commencement of movement of goods through generation of e-way bill by
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person, shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.
[Provided that where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment:
Provided further that where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
Consequences of not generating /carrying E way Bill
If the movement of goods is not supported by a Tax Invoice and Eway Bill the penalty leviable is Rs 10,000 or the tax sought to be evaded whichever is greater. Thus the minimum penalty of not carrying an E way Bill is Rs 10,000.
- Detention /Seizure of the Vehicle
In case E way Bill is missing the Vehicle carrying the goods can be detained or seized. In such cases the Vehicle is released only on payment of applicable tax or penalty as follows.
- If the owner comes forward- Penalty is pay 200% of applicable tax
- If the owner doesn’t comes forward – Penalty is pay 200% of applicable tax or 50% of value of goods whichever is higher
FAQ’s on E way Bill
Q1 What does the Tax Invoice value of Rs 50,000 include for the purpose of ascertaining applicability of E way Bill
Answer The Gross Invoice value has to be considered for the purpose of calculating the applicability of exempt limit. For instance
Value of Goods --> Rs 43,000
CGST & SGST --> Rs 7,740
Total --> Rs 50,740
Is Eway Bill required to be generated – The answer is Yes . Though the value of goods is less than Rs 50,000 but the gross value with taxes is more than Rs 50,000 so Eway bill is compulsory.
Q2 In what conditions E way Bill is mandatory?
Answer Section 68 of the Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. The prescribed amount is Rs 50,000. Rule 138 of CGST Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods in certain prescribed cases. Hence e-way bill generated from the common portal is required. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees.
Q3 Are there any goods exempted from the requirement of E way Bill even if the consignment value exceeds Rs 50,000?
Answer Yes. For complete list of exempted goods for the purpose of E way Bill requirement See Annexure to Rule 138(14)
Q4 Is there a requirement of E way Bill when a registered dealer purchases from a Unregistered person?
Answer Yes. E way Bill is required to be generated in such cases if the consignment value exceeds Rs 50,000.