e way bill generation

What is E-Way Bill & Validity, Legal Implications  for Businesses

In this article we are explaining about what is eway bill rules under GST. which can help you get authentic information of GST law.

What is E-Way Bill?

e way bill

E-Way Bill is electronically generated document required for interstate movements of goods having consignment value above INR 50,000 in all states of India including Delhi.

It is mandatory to generate eway bill online from 1st April 2018 for transportation of goods from one state to other.

Process of E-Way Bill generation is completely online (digital) process and replaced the conventional eway bill GST under VAT Regime.

The first step in E-way bill generation process is to register an official portal.

If you are registered GST Tax Payer and having GSTIN number you can directly use E-Way Bill portal. If you are unregistered person or transporter you can still create an account on E-Way Bill portal with the help of PAN number and Aadhar Card.

Now you must know about e way bill applicability. to whom it is applicable ? the answer is Goods supplier, recipient and transporter, any of them can generate GST waybill.

After the successful account creation at official E-Way Bill portal you will get unique E-way bill number (EBN) which is valid for supplier, receiver and transporter.

This bill includes details of transportation right from its start point of journey to the destination, route, and details of supplier, recipient and transporter.

How to make e way bill in Tally | Watch video now

Validity of E-Way Bill

e way bill not required for 50 kms ? When e way bill is not required? is that your question also? Many businesses are get confused about validity of e way bill. Lets understand eway bill validity under GST.

The validity of GST way bill shall be counted from the time at which it has been generated based on distance to be traveled and type of Cargo i.e. Normal Cargo or Over Dimensional Cargo.

Type of Cargo

Transport Distance

Validity Period

Normal Cargo

Upto 100 kms

1 day

For every additional 100 kms or above that

1 day extra

Over Dimensional Cargo

Upto 20 Kms

1 day

For every additional 20 kms or above that

1 day extra

Example 1 – Suppose Mr. Ganesh generates the E-Way bill on 27 June 2018 at 4 PM for the transport of cargo which will cover the distance of 87 kms. This E-Way bill will valid till midnight of 28 June 2018.

Example 2 – Suppose Mr. Iyer generates the E-Way Bill on 27 June 2018 at 4 PM for the transport of cargo which will cover the distance of 187 kms. This E-Way bill will valid till midnight of 29 June 2018.

e way bill

Legal Implications

According to the GST law, E-Way bill is mandatory when you are transporting goods from one state to another. Government appointed field officers can obstruct the transport vehicles for verification of documents such as invoices and E-Way Bill’s.

Since all the fixed check posts on road are terminated Invoices and E-Way verification process will be done at any spot anywhere by government appointed officers.

If you don’t carry or generate E-Way bill and invoice documents during movement of goods, will be treated as non-compliance with GST law and regulation. This can cost both monetary and non-monetary losses to the taxpayer.

Monetary Legal Implications

Since E-Way bill is the compliance for GST law and regulations you need to carry both invoices and E-Way Bills during the transportation of goods.

  • There is no tax related penalties for non-generation of E-Way Bill if the tax is already covered and paid during invoice generation. However in such case penalty of INR 10,000 will be imposed by the appointed authority officer.
  • If you are not carrying E-Way Bill during the transportation appointed officers can allege that consignor intended to bypass the applicable tax and hence eligible for the fine of INR 10,000 or payable tax amount whichever is higher.

Non-Monetary Legal Implications

If one can found without waybill generated and Invoice while transportation of goods, checking officer can detained the detained or seized the goods and the vehicle. The detention will be waived off only when appropriate tax amount or penalty is paid.

Under this there could be two situations

  • If the consignor wish to pay fine/penalty, he must pay INR 10,000 (100% of the tax payable)
  • If not, the penalty will be 50% of the value of goods being carried during transportation.

Apart from the above monetary and non-monetary consequences vehicle or goods can be details which will affect the supply chain consignor.

Thus to avoid working capital blockage and hampering to supply chain, you must generate eway bill limit  for each and every trip of transporting goods above 50 kms from GSTHero’s ERP (Tally, SAP and other ERP’s) Tally Connector.

e way billing

Procedure to generate all your E-Way Bills with one single click

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