GST - E-WAY BILL

The e-way bill for the inter-state movement has been advanced to February 1 from April 1, while the trial began from January 16. The e-way bill requires online pre-registration of goods before transportation under the new GST regime. Under the e-way mechanism, all goods worth over Rs 50,000 will have to be pre-registered online before they are moved for sale beyond 10 km. The e-way bill mechanism has been introduced in the GST regime to plug tax evasion loopholes. Tax evasion was one of the reasons cited by the government for the fall in revenue collection in October.

Modes of generation of the e-way bill:

1)Web online using browser on a laptop, desktop, phone etc.

2)Android-based mobile app on mobile phones

3)Via SMS through registered mobile number

4)Via API( Application Program Interface) i.e. integration of IT system of the user with e-way bill system for generation of the e-way bill.

5) Tool based bulk generation of e-way bills

6) Third party-based system of Suvidha providers

When an e-way is generated, a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. As per the schedule of implementation, the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018. Trade and transporters will be able to use it on a voluntary basis from January 16.

E-way bill is generated when there is a movement of goods:

1) In relation to the supply.

2) For reasons other than a supply (say a return).

3) Due to inward supply from an unregistered person.

In this case, a supply can either be:

1) Sale – sale of goods and payment made

2) Transfer – branch transfers for instance

3) Barter/Exchange – where the payment is by goods instead of in money

Benefits:

1) Taxpayers or transporters need not visit any tax officers or check posts for generation of e-way bill or movement of goods through states.

2) No waiting time at check-posts and faster movement of goods thereby optimum use of vehicles or resources, since there are no check posts in GST regime.

3) User-friendly e-way bill system.

4) Easy and quick generation of e-way bill.

5) Checks and balances for smooth tax administration and process simplification for easier verification of e-way bill by tax officers.