• Blog|GST & Customs|
  • 4 Min Read
  • By Taxmann
  • |
  • Last Updated on 25 June, 2021
Changing times, staunch technology coupled with the launch of GST, has impacted the businesses in India in a way that apparently is one of its kind. The slogan- “One nation; One tax; One market” definitely finds its meaning in more than one sense with simplification of tax compliances and integration of Indian markets by virtue of seamless flow of goods cross-borders wherein incidence of tax is more or less same irrespective of state from where the supplies are made. GST certainly ensures ease of doing business in India. 
Having said that there is a seamless flow of goods across the state borders in India, the need to keep track of movement of goods in the country is not very unconventional. So, to keep track of the movement of goods under GST regime, a common electronic network for way bills (transport bills) called E-way Bill System was introduced. The E-way bill generated under this system holds validity in all states and union territory of India for a certain time limit. More than 10 crore e-way bills for intra-state supplies were generated within 80 days of its launch.

What is an E-way Bill?

E-way bill is an electronic bill that acts as a document that every person in charge of the conveyance carrying goods of more than Rs. 50,000/-* is required to carry mandatorily.    

Who can generate an e-way bill?

E-way bill is required to be generated for any kind of movement of goods in the country whether inter-state or intra-state (subject to the exemptions under notifications and other criteria as per e-way bill rule) before the commencement of movement of goods. 

1. Every Registered Person:

Every registered person who makes a supply of more than Rs. 50,000/-* has to generate E-way Bill on E-way Bill portal. If the registered person receives supplies of goods from the unregistered person, in that case also the registered person (i.e. recipient of supplies) is required to generate e-way bill. *For intra-state movement of goods in Delhi and Punjab, this threshold limit is Rs. 1,00,000/-

2. Unregistered Persons:

Where supplies are made by unregistered persons who cause movement of goods are also required to generate e-way bills by enrolling themselves on the common portal by providing their PAN and Aadhaar. However, if unregistered persons make supplies to registered person, compliance for e-way bill generation is on the part of recipient i.e. registered person.

3. Transporter:

If e-way is not generated either by the consigner or consignee of goods, the transporter has to generate E-way bill to ensure compliance of section 68 of CGST Act, 2017 read along with rule138 of CGST Rules, 2017. Transporters can enroll in the e-Way Bill System by providing their PAN and Aadhaar by making Application for Enrollment u/s 35(2) on the portal.

When is an E-way bill required to be generated?

1. In case the value of Goods is more than Rs. 50,000/- When the goods under movement are worth more than Rs. 50,000/-, an e-way bill is required to be generated. 2. In the following cases, an e-way bill is required to be generated irrespective of the threshold limit of Rs. 50,000/-     a. Job work: where goods are sent by the principal to job worker in another state for job work.     b. Handicraft Goods: where handicrafts are sent by a dealer exempt from GST registration to another state, e-way bill is mandatory for facilitating such movement of goods. 

When an e-way bill is not required to be generated?

E-way bill is not required to be generated in the following circumstances:
1. When the value of goods for movement is less than Rs. 50,000/- (other than the cases specified above i.e. job works and handicrafts)
2. When goods are transported by a non-motor vehicle.
3. When goods are transported for a distance less than 10 Kms within the state from place of business of consignee to the place of transporter (for further transportation) or vice-versa. 
4. Goods transported from Customs port, airport, and air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
5. When goods are transported under the Customs supervision.
6. When Transit cargo is transported to or from Nepal or Bhutan.
7. When movement of goods are caused by defence formation under Ministry of defence as a consignor or consignee.
8. When movement of goods is covered in Annexure to Rule138(10), as mentioned hereunder:
    a. Items of mass consumption i.e. Fruits, vegetables, meat, curd, butter, milk, fish, chicken, honey, coffee beans wheat, rice, rye, besan, bread, salt etc.
    b. Items like newspaper, stamps, printed books, national flag, raw silk, handlooms, sindoor, bangles, bindi etc.
    c. Currency 
    d. Passenger baggage
    e. Postal baggage transported by Department of Posts
    f. Specified puja samagri
    g. LPG for household supply and Non- domestic exempted category customers
    h. Kerosine sold under Public distribution system (PDS)
    i. Jewellery, goldsmiths’ and silversmiths’ wares and other articles
    j. Coral- worked or unworked
    k. Used personal and household effects
    l. Natural or cultured pearls and precious and semi-precious stones; precious metals and metal clads with precious metals
9. When transport is of empty cargo containers. 10. When consignor of transport of goods by rail is Central Government, State Governments or a local authority. 11. When transport of Goods are exempt as per laws in particular states/ union territories. So, for movement of goods (other than those explicitly specified) within the country, e-way bill is required. Movement of goods without e-way bill leads to contravention of law and attracts penal consequences and therefore, an e-way bill should be generated before commencement of movement of goods.
Author Bio: Radhika Daga is a CA Final student. Connect with her on Linkedin @www.linkedin.com/in/radhikadaga.

Also Read: E-way Bill for Intra-State Supplies 

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