The concept of the ‘Electronic Way Bill’, shortly and popularly known as an e-way bill, was for the first time introduced and implemented under GST. Basically, an e-way bill under GST is to be generated by the registered person under GST for the movement of inter-state supply of goods of value above INR 50,000.
Talking about import and export, as we know, import and export is the main aspect of a country’s economy as it determines the foreign exchange earnings. In simple terms, import means to bring in goods into India from a place outside India. Whereas, export means to send goods from India to a place outside India.
As being the main aspect, it is important to understand the e-way bill requirement vis-à-vis export and import under GST. The same is taken up and briefly explained in the present article.
Export and import under GST | e-way bill Applicability?
In order to understand the e-way bill applicability on export and import under GST, it is important to understand the different stages of imports as well as different stages of exports. Accordingly, different stages of imports vis-à-vis its e-way bill requirement are explained in the table below –
Stage | Description | Requirement |
|---|---|---|
Stage 1 – Sea port or airport | This is the first stage of import. However, a consignment is said to be successfully imported into India when it reaches the sea port or airport. | There is no e-way bill requirement when the goods reach the sea port or airport. |
Stage 2 – Inland Container Depot (ICD) or Customs Freight Station (CFS) | Now, the goods are moved to ICD or CFS for the purpose of clearance. | Such movement of goods to ICD or CFS also doesn’t require an e-way bill. |
Stage 3 – Home consumption or bonded warehouse | The goods from ICD or CFS are either cleared for home consumption or it is kept in a bonded warehouse and then cleared for home consumption. | In case the goods from ICD or CFS are moved to bonded warehouse, such a movement of goods doesn’t require any e-way bill. However, as and when the goods are cleared for home consumption, the same requires the generation of an e-way bill. |
Now, let us go through the different stages of exports vis-à-vis its e-way bill requirement which is explained in the table below –
Stage | Description | Requirement |
|---|---|---|
Stage 1 – Place of business or exporter’s warehouse | This is the first stage of export. Here, goods are moved from the place of business to the exporter’s warehouse. | Such movement of goods from the place of business to the exporter’s warehouse requires the e-way bill generation. |
Stage 2 – Inland Container Depot (ICD) or Customs Freight Station (CFS) | Now, the goods are moved from the exporter’s warehouse to ICD or CFS. Notably, it may happen that instead to the exporter’s warehouse, the goods are moved to ICD or CFS from the place of business. | The movement of goods from the exporter’s warehouse to ICD or CFS doesn’t require the generation of an e-way bill. However, if the goods are moved directly to ICD or CFS (without movement of goods to the exporter’s warehouse) from the place of business. Then, such movement will require the generation of an e-way bill. |
Stage 3 – Sea port or airport | Finally, the goods are moved from ICD or CFS to sea port or airport. | Such movement of goods from ICD or CFS to a sea port or airport doesn’t require an e-way bill. |
Is there any exemption available for the generation of an e-way bill for export and import under GST ?
Yes, there is no requirement for the generation of an e-way bill under the following circumstances –
- Import and/ or export of petrol, diesel and kerosene;
- Goods are being transported to or transported from either Nepal or Bhutan;
- Movement of goods between customs port, inland container depot (ICD) or Customs Freight Station (CFS).
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How to generate an e-way bill for export and import under GST?
The manner of generation of e-way bill in the case of imports and exports is the same as that in any other case. However, differentiating particulars which need to be noted in case of the generation of e-way bill for imports and exports are highlighted hereunder –
Particulars | Details to be mentioned in case of imports | Details to be mentioned in case of exports |
|---|---|---|
Selection of transaction subtype | Import | Export |
Document number as well as document type | Bill of Entry | Tax invoice meant for export of goods |
Bill From | URP – Unregistered Person | Details of the exporter (i.e. name of exporter, GSTIN, etc.) |
Dispatch From |
| Address of place of business of exporter or warehouse of exporter |
Bill to | Details of importer (i.e. name of importer, GSTIN, etc.) | An unregistered person residing outside India (URP needs to be mentioned) |
Ship to | Address of place of business of importer or warehouse of an importer |
|
Transport details | Details of the transporter (i.e. transporter ID, vehicle details, etc.) | Details of the transporter (i.e. transporter ID, vehicle details, etc.) |
How to calculate the validity of an e-way bill for export and import under GST?
Validity of an e-way bill is based on the distance of transportation of goods. Accordingly, the validity of the e-way bill in the case of imports and exports should be calculated in the following manner
- imports under GST –
Validity of an e-way bill in the case of imports should be determined based on the distance from the ICD or CFS to the place of business. - exports under GST –
Validity of an e-way bill in the case of exports should be determined based on the distance from the place of business to the exporter’s warehouse or ICD/ CFS.
What is the importance of an e-way bill in imports and exports?
Under GST, imports and exports are considered as inter-state supplies of goods. Accordingly, the generation of e-way bill is mandatory in the case of imports and exports. Just like any other inter-state supplies, an e-way bill needs to be accompanied with the conveyance either carrying goods for importation or exportation.
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