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E Way Bill

E-Way Bill - How it Works and its Impact in Lay Man Terms

• The E-way Bill is Being Seen as a Solution to prevent GST Evasion. Logistics Junction explains How?

Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.

• It isrequired for the movement of goods in case the value of goods are above 50 thousand rupees.
• The bill can be generated from the GSTN portal.
• The GST council has mandated the implementation of e way bill from 1st February 2018 in all the states.
• Goods of VAT 47 A will be included in the e-way bill. It includes nearly 38 items such as electrical items, sanitary napkins, dry fruits and plastic goods.
• 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).
• Features of 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 provision 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 are an effective tool to track movement of goods and check tax evasion. Some features of the E-Way Bill are as follows-

1. In order to generate e-way bill easily, the user is able to make masters of suppliers, products, and customers.
2. Multiple forms of e-way bill generation for convenience in use.
3. Notifications and alert messages will be forwarded to registered e-mail and mobile number of the users.
4. A unified e-way bill will be generated to vehicle taking various consignments.
5. Now it is easy to regulate e-way bills generated from users account or on behalf.
6. The user can further make sub-users and roles on concerning e-way bill portal for creating the e-way bill.
7. Vehicle number can be added by the recipient or supplier of goods generating EWB or who is the transporter.
8. QR code will be mentioned on an e-way bill in order to make easy accessibility of information.

• Benefits of the 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. Some benefits of the E-Way Bill-

1. Users can prepare master data of their customers, suppliers and products in order to facilitate the generation of the e-way bill.
2. Users can vigilante the e-way bill generated in their account
3. There are multiple ways of easy generation of e-way bill
4. User can make sub-user and roles on portal for easy generation of e-way bill
5. Users will get alerts on their registered mail/mobile number
6. Vehicle number will be recorded by either transport company or supplier of goods who is generating the e-way bill
7. QR code will be present on every e-way bill so that it is easy to see the summary
8. A detailed e-way bill can be generated for those who are carrying multiple consignments

• Impact of the E-Way Bills on the Logistics Industry

Road transport in India is a crucial part of the country’s transport and logistics industry. With a 10% annual growth every year, the sector has reaped the benefits of rapid expansion in the automobile industry, changes in taxation, and the boom of the e-com sector which relies on logistics for pan-India service. Now, the introduction of GST is expected to increase the need for integrated logistics solutions as companies decrease the number of warehouses they maintain in different states. The changes brought about by GST are also expected to solve one of the major problems this sector faces – the inter-state transport of goods without the hassle of documentation and long waiting queues at check posts.