The e-Way bill system is for GST-registered persons / enrolled transporter for generating the waybill (a document to be carried by the person in charge of conveyance) electronically on commencement of movement of goods exceeding the value of Rs. 50,000 in relation to the supply or for reasons other than supply or due to inward supply from an unregistered person.
The e-way bill has been made mandatory for inter-state supplies from April 1, 2018, and for intra-state supplies from April 25, 2018, in certain states (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Pondicherry). An e-way bill must be generated before the goods are shipped and it should include details of the goods, their consignor, recipient, and transporter. An e-way bill is generated for: Supply of goods Non-supply transactions like export/import, return of goods, job work, line sales, sale on an approval basis, semi or completely-knocked-down supply, supply of goods for exhibition or fair, and goods used for personal consumption.
RESPONSIBILITY TO GENERATE E WAY BILL
Every registered person who may be a consignor, consignee, recipient, or transporter should generate an e-way bill if the transportation is being done through their own or hired means of transport (air/rail/road). 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. The transporter should generate an e-way bill, if both the consignor and the consignee fail to generate an e-way bill despite having handed over the goods to the transporter, for conveyance by road. Note: The consignor can authorize the transporter/courier agency/e-commerce operator to fill PART-A of the e-way bill on their behalf.
DOCUMENT REQUIRED DURING TRANSPORTATION OF GOODS
The invoice, bill of supply, or delivery challan. For transportation by road, the transporter should carry their transporter ID. For transportation by rail/air/ship, the transporter should carry their transporter ID, and transport document number along with the date of transportation. 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).
EXEMPTIONS ARE ISSUED ON E-WAY BILLS
An e-way bill is not required in the following cases: If the value of the consignment is less than Rs. 50,000. When the goods being shipped are exempt from GST. Note: If the consignment contains both – exempt and taxable goods, the value of exempt goods is excluded from the value of the consignment. If goods are transported by non-motorized conveyances (for example railways). Though an e-way bill is not required, an invoice or a challan should be carried during the transportation of goods. If goods are transported from a port, airport, air cargo complex, or land customs station to an inland container depot or a container freight station for clearance by the Customs Department. Transport of goods as specified in Annexure to Rule 138(14) of the CGST Rules, 2017.
“BILL TO SHIP TO” TRANSACTION
The Goods and Services Tax (GST) is an indirect tax based on the consumption destination. Hence it is very important for the taxpayers to correctly determine the place of supply, especially in transactions where the billing address and the actual shipping address are different. Bill-to-ship-to transactions are a common practice in daily business. These transactions involve supplies where the goods are delivered to the recipient on the instruction of a third party. These types of transactions involve three parties, Place of supply for “Bill to Ship to” transactions is defined under GST under Section 10 (b) of IGST; (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during the movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person;
WHO WILL ISSUE E WAY BILL IN THE “BILL TO SHIP TO” CASE
The department in its “press issue* released on 23rd April 2018 addressed the issues regarding the “Bill To Ship To” for e-Way Bill and clarified that as per the CGST Rules, 2017 either of the party can generate the e-Way Bill and that only one e-Way Bill is required to be generated. The person generating the e-way bill will mention the details of his tax invoice