What Is An E-Way Bill?

An electronic way bill or E-way bill is a document which contains the details of the goods being transported. It functions as a permit allowing inter-state transport of goods. Goods worth more than Rs. 50,000 cannot be ‘moved’ without an e-way bill.

A registered person or transporter may choose to generate an e-way bill even if the value of goods is less than Rs. 50,000.

Who Should Generate An E-Way Bill?

  • Every registered person who may be a consignor, consignee, recipient or transporter.
  • An unregistered person who is supplying to a registered recipient. Here, the recipient will need to follow the compliance procedure since the supplier is not registered.

When is an E-Way Bill Generated?

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

  • Supply of goods (made with/without consideration)
  • Non-supply transactions (Examples: Return of goods, job work, and goods used for personal consumption) 
  • Purchases made from an unregistered person (Reverse charge mechanism will be applicable).

Which Form Is Applicable For Generating An E-Way Bill?

  • Form GST EWB-01: Containing details such as quantity, vehicle number, etc.
  • Form GST EWB-02: to be generated if multiple consignments are transported in one vehicle.

What Is The Validity Of An E-Way Bill?

An E-way bill is valid for periods based on the distance traveled by the goods. Validity is calculated from the date & time of generation of e-way bill –

 

Sr. No. Distance Validity Period
1 Up to 100 kilometer One day
2 For every 100 km or part thereof thereafter One additional day

 

  • In case goods are not transported within the validity period due to transhipment
    and exceptional circumstances, the validity period of EWB can be extended by the
    transporter.
  • Over dimensional cargo is granted extra validity period.
  • Validity of one day will expire at midnight of the day immediately following the date of
    generation of EWB

What Are The Documents A Person In Charge Of Transportation Of The Goods Should carry?

  • The invoice, bill of supply, or delivery challan.
  • A copy of the e-way bill or the e-way bill number (EBN). The transporter can either carry a physical paper copy of the EBN or map it to a Radio Frequency Identification Device (RFID).  

What Is EBN?

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is made available to the supplier, recipient, and the transporter.

Who All Can Update The Vehicle Number For The E-Way Bill?

The vehicle number can be updated by the person who generates the E-way Bill – either the supplier or the transporter assigned by the supplier.

Can E-Way Bill Be Edited If There Has Been A Mistake?

If there is a mistake in the E-way bill, it cannot be edited. The E-way bill has to be cancelled and a new one has to be generated. 

What Is A Consolidated E-Way Bill?

When multiple consignments of various consignors and consignees are being carried in one vehicle, a consolidated E-way Bill will be generated. A consolidated E-way bill is a document containing multiple e-way bills. 

Which Are The Modes The Taxpayer Can Use To Generate E-Way bills?

An E-way bill can be generated by the registered person/s by any of the following methods:

  • Web based system
  • SMS based facility
  • Android App
  • Site-to-Site integration
  • Suvidha Provider

What Happens After The E-Way Bill Is Generated?

After the E-way bill is generated, it should be accepted by the recipient/buyer who is registered on the common portal. If the recipient doesn’t communicate his acceptance or rejection within 24 hours, it will be assumed that the E-way bill and the goods have been accepted by the recipient. There are certain cases where acceptance is not required to be communicated.

Is It Possible To Delete An E-Way Bill?

In case any error is made while filing the transportation details, an E-way bill cannot be deleted. It is possible to cancel the bill within 24 hours of its generation. However, if it has been verified by an officer, it cannot be cancelled. The supplier can opt to cancel the e-way bill via SMS.

How Is The E-Way Bill Verified?

  • An authorized officer may halt the vehicle to check the e-way bill or see the e-way bill number on paper.
  • Verification of the e-way bill may be done through a Radio Frequency Identification Device (RFID), if the e-way bill has been mapped with RFID.
  • If the vehicle is detained for more than 30 minutes, information about the same can be uploaded in Form GST EWB-04.

Will The Goods Be Inspected? If Yes, How?

An authorized office can physically inspect and verify the goods if they receive information of tax evasion.

A summary of inspection of goods will be recorded online by the officer in Part A of GST EWB-03 within 24 hours of inspection. The final report will be submitted in Part B of GST EWB-03 within 3 days of inspection.

What Are The Different Types of Invoices to be Issued under GST?

These are the two types of invoices which have to be issued while trading.

 Tax Invoice – A tax invoice is issued when a registered taxable person
supplies taxable goods and/or services. It is generally issued to charge
the tax and pass on the tax credit.

 Bill of Supply – In GST, there are certain suppliers who are not allowed
to charge any tax. Since a Tax invoice cannot be issued, another
document called Billy of Supply is furnished.

How Many Copies Of The Invoices Have To Be Issued For The Supply Of Goods?

A supplier is required to furnish three copies of an invoice when goods are supplied 

  • Original Copy – It is issued to the buyer when he purchases any goods or services. It is generally marked as ‘Original for recipient’.
  • Duplicate Copy – The duplicate copy is provided to the transporter of goods as evidence, to be produced as and when required. It is generally marked as ‘Duplicate for transporter’.
  • Triplicate Copy – The supplier retains the Triplicate copy for his own records. 

The transporter doesn’t need to carry the duplicate copy if the supplier has obtained an Invoice Reference Number.

What Is An Invoice Reference Number?

An Invoice Reference Number (IRN) can be obtained from the GSTN. The supplier simply has to upload the tax invoice which he has issued. It will be valid for 30 days from the date of uploading.

How Many Copies Of The Invoices Have To Be Issued For The Supply Of Services?

The supplier should make two copies of the tax invoice for a supply of services:

  • The original invoice is issued to the recipient.
  • A duplicate copy is retained by the supplier for their own reference.

What Is The Minimum Bill Value For Which An Invoice Should Be Raised?

An invoice should be generated if the total value of taxable supplies is more than Rs. 200. If the taxable supply is less than the aforementioned amount and if the recipient is not registered, it is not required to raise an invoice. However, a consolidated invoice should be drafted to record all supplies where an individual invoice wasn’t created.

When Should A Tax Invoice For Supply Of Goods Be Issued?

An invoice must be issued at the time of transfer or before it if there is a single transfer of finished goods or commodities. If the goods are transferred/sold in instalments, a tax invoice can be issued when the final instalment is delivered.

What Is The Time Limit To Issue An Invoice For The Supply Of Services?

In case of supply of services, generally a tax invoice should be issued within 30 days from the date of supply. In case the supplier is a bank or an insurer, the invoice must be issued within 45 days from the date of supply.

Which Are The Fields That Should Be Present In An Invoice?

A GST tax Invoice must have these fields:

  • Customer name
  • GSTIN (customer & taxpayer)
  • Invoice number & date
  • Place of Supply
  • HSN/SAC code
  • Details of the item
  • Discounts if any
  • Taxable value
  • Rate & amount of taxes
  • Whether GST is payable on reverse charge basis
  • Signature of the supplier

Is It Compulsory to Maintain Invoice Number?

Yes. The invoice serial number has to be maintained and followed strictly. The format may be changed after communicating the same along with the reason to the GST department officer.

What Happens If The Client Is An Unregistered Dealer?

If the client is not registered under GST, the supplier cannot mention the client’s GST Identification Number. However, in such a case, the supplier will have to pay tax under the Reverse charge mechanism.

What is Reverse Charge Mechanism? How to Issue an Invoice under Reverse Charge?

A dealer who is not registered under GST is not liable to pay the taxes. Therefore when a registered person deals with an unregistered trader, he/she will be liable to pay taxes on purchases made from an unregistered dealer. This tax liability is termed as reverse charge. The registered dealer can claim credit on inputs only after paying reverse charge. Full credit of GST paid on goods on reverse charge can be claimed.

When GST is payable under Reverse charge basis, the supplier must mention on the invoice that the tax has been paid under reverse charge.

Who Has To File Returns?

Under GST, every registered business has to file returns in a timely manner. They have to furnish details of Purchases, Sales, GST paid on sales as well as GST paid on purchases. A nil return has to be filed in case there is no business activity for the month.

Some entities and organizations need to register under GST but aren’t required to file returns regularly. Foreign consulates and UN bodies will be issued a UID instead of GSTIN and will have to file returns only for the months during which they make purchases.

What Are The Key Points To Remember While Filing Returns?

  • The returns can be filed only online.
  • A common return is to be filed for CGST, IGST, SGST and any other additional taxes.
  • You can file the returns yourself or authorize someone else to file them on your behalf.
  • Returns cannot be revised once submitted. Any corrections have to be made in the return for the succeeding month.
  • GST compliant invoices are required to file the returns.

Which Are The Different Kinds Of Returns?

  • The returns required to be filed depend on your business model.
    Form Who has to file?
    GSTR-1 Registered Taxable Person
    GSTR-2 Registered Taxable Person
    GSTR-3 Registered Taxable Person
    GSTR-4 Composition Dealer
    GSTR-5 Non-Resident Taxable Person
    GSTR-6 Input Service Distributor
    GSTR-7 Authorities deducting Tax at Source
    GSTR-8 E-commerce Operator
    GSTR-9 Registered Taxable Person
    GSTR-10 Taxable Person whose registration has been cancelled or surrendered
    GSTR-11 Person having UIN

What Are The Due Dates To File Returns?

The following are the return filing dates as per the GST Act.

Form Due date Form Due date
GSTR-1 10th of next month GSTR-7 10th of next month
GSTR-2 15th of next month GSTR-8 10th of next month
GSTR-3 20th of next month GSTR-9 31st December of next FY
GSTR-4 18th of following quarter GSTR-10 Within three months of the date of cancellation or date of cancellation order, whichever is late
GSTR-5 20th of next month GSTR-11 28th of the month following the month for which statement is filed
GSTR-6 13th of next month

The following are the return filing dates as per revisions made in the 23rd GST Council Meet:

For turnover less than Rs. 1.5 cr:

Period (Quarterly) Due Dates
July-September 31st December 2017
October-December 15th February 2018
January-March 30th April 2018

For turnover more than Rs. 1.5 cr:

Period Due Dates
July-Oct 31st December 2017
November 10th January 2018
December 10th February 2018
January 10th March 2018
February 10th April 2018
March 10th May 2018

The timelines for filing GSTR-2 and GSTR-3 for the months from July to March 2018 will be decided by Committee of Officers. The return filing dates for following returns have also been extended.

Return Due Dates
GSTR-5 15th December 2017
GSTR-4 24th December 2017
GSTR-6 31st December 2017

What If I'm Unable To File The Returns On Time?

For late filing of returns, a penalty of Rs. 100 is applicable. It will be payable for every day that the taxpayer fails to file returns, subject to maximum of Rs. 5000.

What Are The Details To Be Provided In The Return Forms?

Form Particulars
GSTR-1 Sales Return –  Details of outward supply of taxable goods and/or services
GSTR-2 Purchase Return – Details of inward supply of taxable goods and/or services
GSTR-3 Consolidated monthly return which will be auto-populated through GSTR-1 & GSTR-2
GSTR-4 Details of outward supplies and tax payable
GSTR-5 Details of outward supplies, imports, tax paid, input tax availed, and remaining stock
GSTR-6 GSTR-6A will be auto generated after suppliers fill GSTR-1. After details are confirmed, GSTR-6 will be generated
GSTR-7 Details of tax deductions made during the month.
GSTR-8 Details of all supplies, tax collected at source
GSTR-9 Annual Return
GSTR-10 Taxable Person whose registration has been cancelled or surrendered
GSTR-11 Details of inward supplies

What Is GSTR-3B?

To ease compliance and to ensure smooth transition, GSTR-3B is the return form introduced for the month of July and August. Instead of the normal returns taxpayers and assesses have been notified to file their returns in form GSTR-3B.

What Are The Due Dates For Filing GSTR-3B?

To ease compliance and to ensure smooth transition, GSTR-3B is the return form introduced for the month of July and August. Instead of the normal returns taxpayers and assesses have been notified to file their returns in form GSTR-3B.

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