Get a complete Guide of E-waybill.


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You must be aware of the declaration of Union Government in the 24th GST council meeting, about the enforcement of E-waybill mechanism for all shipments having value more than ₹50,000/- from 1st February 2018. It is important that you must know the fundamentals of this electronic system of tracking movements of goods. So, here is a comprehensive E-guide on all that you must know about E-waybill.


Presentation Transcript

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Comprehensive Guide on E-Waybill

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Concept of E-waybill ✓ E-waybill refers to Electronic Waybill. ✓ It is an electronically document generated on GST portal permitting movement of goods. • It shall contain information regarding the shipment of a consignment and other details including name of consignor sender of goods consignee receiver the place of origin and destination of the consignment and the route accessed. • The authorized body for issuing E-waybill is department of Goods and Service Tax GST. Why E-waybill E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion. When to generate the E-waybill Before the movement of goods

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Who will generate E-waybill Situation Should be generated by If the transportation is being done in own/hired conveyance or by railways by air or by Vessel Consignor or consignee himself If the goods are handed over to a transporter Transporter Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than Rs.50000/- Transporter Where goods are sent by a principal located in one State to a job worker located in any other State Principal irrespective of the value of the consignment Is it mandatory to generate E-waybill E-waybill will be mandatory for all interstate and intra state movement of goods having value exceeding ₹50000/-. As per Rule 138 of the CGST Rules 2017 provides for the e-way bill mechanism and in this context it is important to note that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for purposes other than supply”. Type of goods included in E-waybill Broadly all type of goods that are transported for commercial purpose whose value is more than ₹50000/- are to be recorded in the E-waybill.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited For how much duration is the E-Waybill valid The tenure of validity of the E-waybill purely depends upon the distance to be covered for consignment the goods. The table show below how the validity period of the E-waybill may vary with the distance to be covered: Distance Validity Period Less than 100 km 1 day 100 km to 300 km 3 days 300 km to 500 km 5 days 500 km to 1000 km 10 days 1000 km or more 15 days -----This space intentionally left blank-----

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Structure of the E-Waybill Part A • Details of GSTIN of recipient • Place of delivery PIN Code • Invoice or challan number and • Date of Issue of the Invoice or challan • Total value of consignment • HSN code • Transport document number Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number • Purpose for transportation Part B • Name of the sender • Vehicle Number and • GR Goods Return number in case of sales or purchases return. Specimen of an E-waybill Details of the consignee or the receiver of the goods. Details of the consigner/sender.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Type of supplies covered under E-waybill -----This space intentionally left blank----- • Goods to be purchased and sold. • Returns Inwards Sales Return • Returns Outwards purchases return • Goods returned due to cancellation of order. • Goods sent for repairs servicing and maintenance. • Stocks Work-in-Progress goods transported during the course of manufacturing or assembling before final sale.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited How does E-Waybill simplify the system Previously in the VAT regime the government used to follow the conventional system of paper generated waybills. It was indeed a tedious process to preserve these individual bills that were different for different states. Moreover the cost of generation of these waybills actually impacted in the rise in the cost of the goods till they reach their final destination. This is exactly what happens in the case of transportation of petrol and diesel. On the whole the E-waybill mechanism results in simplification and authentication of the tracking system. The chart shown below illustrates in detail how the E-waybill simplifies the system- E-waybill Vs. Old waybill Feature E-waybill under the GST regime Old waybill under VAT regime Reduction in custody period Detention period is decreased in case of E- waybill system as there is electronic tracing. Furthermore transporter can lodge complaint in case an inspector detains vehicle for more than half-an-hour. Long Detention period due to slow tracing mechanism. No facility of complaint in case of delay. Avoidance of double checking Once verified the E-waybill doesn’t need to be substantiated by another tax inspector as the details get uploaded on the E- waybill portal. No provision for prevention of double-checking which caused time lag. Facilitation of GST-R 1 filing Relevant details of GST-R 1 form get auto- populated on the basis of details entered during the generation of the e-waybill. No facilitation for VAT return filing was there. Authenticity of tracking This is ensured by issuing of the unique HSN code that will be mentioned on e- waybill and the invoice. Absence of uniform tracking system resulted in delay and increased possibility of illegal movement. GST Registration of the transporter It is mandatory. This will rule out possibility of illegal trade. Optional. Need for acceptance of the receiver. Consignee’s acceptance of e-waybill is necessary within 3 days of its generation. Absence of such deadline caused further delay.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Consolidated E-Waybill A consolidated E-waybill is generated when the transporter is carrying multiple consignments in a single vehicle. Consolidated E-Way is an economic way that allows the transporter to carry a single document instead of separate bills for each consignment in a conveyance. E-Waybill Portal: Smart way to track E-Waybill. With a view to enhance the level of accessibility and simplicity and to rule out the scopes of delay the union has taken a step further by launching the E-Waybill Portal with the help of user can track status of his E-Waybill from anywhere. Salient features of the E-Waybill Portal: • User can easily track the E-Waybill status and monitor E-Waybill generated on his login ID. • Multiple modes of E-Waybill generation for ease of access. • Regular e-mail and SMS alerts will be sent to user on his registered mail-Id and phone number. • Vehicle number can be entered either by sender or receiver whosoever is registered and has generated the E-Waybill. • Ease of tracking via reading QR Code that will be printed on the E-Waybill. • A consolidated E-waybill can also be generated in case of multiple consignments. • Multiple sub-users can be created for generation of the E-Waybill.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited How E-Waybill can prevent tax evasion The main idea of the government behind introducing the E-Waybill concept is the plug the tax leakages that had impacted in plummeting of the government revenues. Globally the businesses rely on electronic invoice system which ensures uniformity in tracking of consignments. According to the renowned experts the manual issuance of waybills encouraged tax harassment and boosted corruption. Moreover the delay in the tracking mechanism encouraged the tax violators to evade tax payment too. Let us understand how conventional E-waybill system curbs tax evasion through this illustration: A dealer RN trader wants to dispatch goods to SV trader through SPI transporter RN trader enters the details of stock in part A of form GST INS 01 and details of transporter in part B to generate E-waybill

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited On the basis of details of stock in Part A SPI transporters can now obtain E-waybill. After generation of E-waybill government was intimated about the movement of goods which facilitated government to track the sales that might have been unreported by seller and helped him evade tax in the absence of such system. Now if RN trader wants to move goods for any purpose including sales then SPI transporter must carry unique E-waybill number to transport the goods to SV trader. Hence E-waybill system facilitates uniform E-waybill number to track the consignments while transit prevents tax evasion. Cons -----This space intentionally left blank-----

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited What if movement of goods without E-waybill The penalty of non-filing of E-waybill is 200 of the goods value of the consignment. Apart from the aforesaid penalty there are certain other stringent measures that the central government has imposed for non-issuance of E-waybill as per powers conferred to it under Section 122 of the CGST Act 2017. These are as follows: • Penalty of ₹10000/- or the tax amount wherever imposed that was intended to be evaded whichever is greater. • In case of transportation or storage of any goods while they are in transit in violation of the provisions of this GST rules made there under there will be detention or seizure of all such goods as well as the conveyance hired during the course of transportation of those said goods along with the documents relating to such goods and conveyance including invoices driving license and RC. Radio Frequency Identification Device Commissioner may by notification require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Cancellation of E-Way Bill The e-way bill may be cancelled electronically on the common portal either directly or through a Facilitation Centre notified by the Commissioner within 24 hours of generation of the e-way bill if goods not transported However an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B of the CGST Rules 2017. The facility of generation and cancellation of e-way bill will also be made available through SMS. Quick-Bites The foremost criteria for generating an E-waybill is GST Registration as only registered user can generate E-waybill. Click here to know more about GST online Registration.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited How to install E-Waybill App on your mobile E-Waybill Portal: smart way to track your goods If you have registered yourself at the website Then you can use the smoother new system to generate and manage your E-Way bill. • Visit • Log in with your user ID and Password. • After login at the home page go to “Registration tab” just below the reports tab • Go for Registration than Android • You will receive an OTP • Verify the OTP • Give details of the android phone IMEI Number and a link will be sent to your submitted phone • Now go to phone and click the link • App will be downloaded from Google Play Store • It’s done Some exceptions where E-Waybill is not required There are certain cases where generation of the E-Waybill is not mandatory. According to the CGST laws these are few exceptions where E-Waybill is not required: • Plainly for movement of the goods that have value less than ₹50000/- does not require generation of E- Waybill. • No e-way bill is required to be generated in case of transportation of the supplies that are mentioned in Annexure to Rule 138 of the CGST Rules 2017. • Consignments that are being conveyed via a non- motorized vehicle such as a rickshaw or bullock cart. • Shipment that has been done from the airport air cargo complex port and land customs station to an inland stock warehouse or a container freight station for approval by Customs department. • Shipment of certain goods within a state that are specified under rule 13814-D of the SGST Rules 2017.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited 24th GST Council Meeting held on 16th December 2017 Highlights on Major Updates ✓ E way bill rolled out on trial basis from 16 Jan 2018 ✓ E way bill rules implemented w.e.f 1 Feb 2018 ✓ State may adopt the system before 1 June 2018 ✓ Form 1st June 2018 Uniform E way bill system implemented across the country. To know more about 24 th GST Council Meeting click here.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Before making it fully functional at national level the Union Government had initiated the E-waybill mechanism on trial basis in five states namely Uttarakhand Kerala Karnataka Madhya Pradesh and Rajasthan. It turned out to be a huge success as nearly 1.4 lakh E-waybills were generated on daily basis. -as reported by the officials of the Goods and Services Tax Department India.

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited Why Choose Us E-Startup India is a dedicated team of highly professional CA CS and Advocates driving towards integration of technology with traditional practices to cater small businesses start-ups and MSMEs throughout their business journey in today’s fast moving and cost-effective world. As Indian economy is moving towards a digital era with an electrifying pace where digital devices become a core tool for every business. E-Startup India make it simple for every businessman to sort out their legal tax and financial compliances online while sitting at their place and get it done within a time bound and cost-effective manner. E-Startup India aims to serve you just like a traditional chartered accountant does in your entire business journey with a great personalization and at half of their price. How ✓ We will serve you with the same personalization just like a traditional CA/CS/Advocate does ✓ We will always be there for you from starting a business throughout the business and in your entire business journey ✓ Remind you about all compliance due dates in advance over the email ✓ Clear all your small doubts directly from experts over the phone ✓ Assist you in doing all types of legal financial and operational compliances – Follow us on Social Media – Post All Your Business Related Queries Here Our Experts Will Answer It within 24 Hours

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E-waybill guide © 2018 by E-Startup India a unit of DutchUncle Tech Solutions Private Limited To know more visit us at Disclaimer: This document is for general guidance and informational purposes only and does not constitute professional advice. You should not act upon the information contained in this communication without obtaining specific professional advice. No representation or warranty express or implied is given as to the accuracy or completeness of the information contained in this communication and to the extent permitted by law E-Startup India its members employees and agents accept no liability and disclaim all responsibility for the consequences of you or anyone else acting or refraining to act in reliance on the information contained in this document or for any decision based on it. Without prior permission of E-Startup India this communication may not be quoted in whole or in part or otherwise referred to in any document.

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