SOLUTIONS TO FREQUENT QUESTIONS ON E-WAY BILL IN SIMPLE LANGUAGE
1) What is E-way Bill?
- E-Way Bill is the document, where you need to provide information regarding movement of goods.
2) Ok, But Movement of Goods happens in various type such as on Sale, Purchase, stock transfer etc and happens at different level of value, for which and all transactions E-way bill is to be generated?
a) E-Way Bill is to be generated when the value of the goods to be transported exceeds 50,000/-. And
b) E-Way bill is to be generated for the following transactions
i) In relation to Supply (in simple words, if movement of goods is related to sale, stock transfer etc)
ii) For reasons other than Supply (Such as for exhibition, testing, Job work etc)
iii) Due to inward supply from an unregistered person, (Here when you are receiving goods from unregistered person, you would be required to generate e-way bill.)
c) However, the taxpayer can generate e-way bill even if the value of the goods does not exceed 50,000/- on voluntary basis.
3) My Customer comes to my place of business, purchases goods takes it with him in his Car. In this case whether E-way comes into picture if yes, then who is required to update it?
a) If your Customer is Registered, he would be required to generate E-way bill.
b) If your Customer is unregistered, He may generate E-way bill at his own option as specified in Proviso to Sub Rule (3) of Rule 138 of CGST RULES.
4) I went through the Format of E-way bill to be generated, there is PART A & PART B in it, how do I understand those?
a) In general sense, PART A of EWB-1 (E-way bill-01) requires you to furnish details related to Invoice, consignment such as GSTIN of your customer, Place of delivery, Invoice Number etc, transporter name
b) PART B is for updating details regarding vehicle in which such goods are going to be transported.
5) How would a businessman, know about the details of the vehicle in case he gives it to the GTA.?
a) Practically. Vehicle number can be updated by businessmen, when the goods the moved in his own vehicle/personally hired vehicle such as PORTER.
b) However, when goods are handed over to the lorry or GTA, it is difficult for businessmen to know the vehicle number and hence in order to deal with this, Government has said that where the supplier is unable to fill PART B of EWB-01, such detail can be filled by transporter once the goods and E-way bill number is handed over to him.
6) How would Transporter be able to update the vehicle number in my E-way bill?
- While generating E-way bill, in PART “A” you would have mentioned transporter Name, ID with the help of which your e-way bill number would be appearing in transporter’s electronic portal.
7) I issued 3 invoices to my customer to whom I have transported goods on the same day. Now I am required to generate 1 E-way bill or 3 e-way bills?
a) For Every Invoice, you would have to generate separate E-Way Bill.
b) Since, you are sending it together, you can generate Consolidated E-way bill and submit to the transporter.
8) My Supplier is unregistered, I give him the order of purchase and he brings the goods from his place to my principal place of business, now who is required to Generate E-way bill?
- As mentioned in Question no 2 above, Registered person in this case it would be the purchaser who would be required to generate E-way bill as if he is the person who has initiated the movement.
9) Ok what if the unregistered supplier of mine, who manufactures goods at his place, brings it to the market, goes to every entity for sale? In this case, who would be liable to generate E-way bill?
- In this case, E-way bill is not required to be generated by unregistered person according to the Explanation provided in the rules, Which states that in case of movement of goods by unregistered person to recipient, E-way bill is to be generated by Recipient PROVIDED recipient is known at the time of commencement of movement of goods. According to the question recipient is not known and hence e-way bill is not mandatory.
10) What about HSN Code which is to be furnished in EWB-01 PART-01? If my turnover was below 1.5 crores in preceding year still am I required to mention?
a) According to the notification no 27/2017, it states that any taxpayer having turnover in preceding financial year upto 5 crores is required to mention 2 digits of HSN Code and for taxpayer with turnover in Preceding Financial year exceeding 5 crores is required to mention 4 digits.
b) In this notification, they have not given any relaxation to the taxpayers with turnover upto 1.5 crores which was given in Monthly returns and invoice rules.
c) They might consider this issue as difficulty would arise to the traders and small taxpayers.
11) We Heard in Newspapers, Media that E-way bill is not required for movement of Goods within 10kms?
a) Yes, however it is to be understood that only Transporter Conveyance Details are not required to be mentioned in following cases
i) If place of business or supplier to place of business of transporter is within 10 kms.
ii) If place of business of transporter to place of business of customer is within 10 kms.
i) Movement of goods should be within the state in both the above-mentioned criteria.
b) Conveyance details means details related to vessel, vehicle or aircraft.
12) If Supplier does not generate E-way bill can transporter generate e-way bill on his behalf?
- Yes, If Supplier has not generated the e-way bill, transporter may generate E-way bill.
13) What are the documents to be provided to the transporter?
a) Tax invoice or bill of supply or delivery challan AND
b) E-way bill copy or even E-way bill number would also be enough need not take a print out (Initially however it is recommended to provide a copy to the transporter during transition phase for easy carryout of operation).
14) I am required to update vehicle number in E-way bill, what if that vehicle during the transit is in bad condition, or due to some circumstance I had to change the vehicle for further movement?
- Rules relating to E-way bill states that in case you change the vehicle for further movement for any reason whatsoever you would be required to update the details of vehicle number in EWB-01.
15) What are the Issues that can be faced for which Consultation/Clarification is required according to the author of this article?
a) Difficulty for updating HSN Code for taxpayers below 1.5 crores.
b) Difficulty in case of change in vehicle for further movement of goods which needs to be updated in portal.
c) Transporter Document number would be provided by him when we provide goods to him before which it won’t be possible, what if the place of transporter is more than 10kms?
d) Transporter would have to generate E-way bill in case, registered person does not generate it.
- However, the rules are yet to be notified, hence government should have a look over the difficulties faced by the dealers.
16) After looking at difficulties, what are the areas where E-way bill would not be required to be generated?
a) Government has notified 154 Commodities along with HSN Code in case of movement of those goods, E-way bill need not be generated.
b) In Case the movement of goods is trough non-motorized conveyance such as: By walk, bullock cart etc.
c) Where Goods are transported from Custom Port to ICD or CFS.
d) Where the goods are moved within areas which are notified by the government of that particular state.
17) How do we fill in E-Way bill?
- Updating of E-way bill is the technical work, for which you may refer User manual as would be provided by respective states of yours.
18) Our business is diversified, a person who does purchases has loads of activities with respect to movement and there is separate division for sales etc. in such a case having single username password does not meet the requirement? What is to be done in such case?
- There is a facility to create sub user id where you can assign username and password as well as type of E-way bills which such sub user id can generate.
I Think most of your queries have been resolved in case of any further clarification required, you may always reach us through following
The Answers provided to the above questions are personal view of the author and it does not amount to professional consultancy.
CA YASH JAIN