GST E-Way Bill

The E-Way Bill (Electronic Way Bill) is a document generated online on the GST portal or via SMS, required for the movement of goods worth more than ₹50,000 under the Goods and Services Tax (GST) regime. It serves as evidence of the transportation of goods and helps in reducing tax evasion by tracking their movement.

Key Features of the E-Way Bill System

1. Unified Platform: Provides a single platform for tracking goods across the country.
2. Inter-State and Intra-State Use: Mandatory for both inter-state and intra-state transportation of goods above the specified value.
3. Validity: Determined based on the distance to be traveled by the goods.
4. Digital Verification: E-Way Bills can be verified by GST officers using QR codes or the E-Way Bill number.

When is an E-Way Bill Required ?

An E-Way Bill is mandatory for the movement of goods:

• If the value of the consignment exceeds ₹50,000.
• For both inter-state and intra-state movements (certain states have exemptions for intra-state transactions).
• When goods are transported through:
  • Road (by a registered person or transporter).
  • Rail, air, or ship.

Exceptions:

1. Transport of goods valued below ₹50,000.
2. Transport of exempt goods like agricultural produce.
3. Transport of goods by non-motorized vehicles.
4. Transportation within certain specified areas (as per state laws).

Validity of E-Way Bill

The validity of an E-Way Bill depends on the distance the goods are transported:

• Up to 200 km: 1 day.
• For every additional 200 km: 1 additional day.

Extension of Validity:

An extension can be requested in specific circumstances, such as vehicle breakdowns or delays.

Benefits of the E-Way Bill

1. Simplified Tax Compliance: Reduces paperwork and manual effort.
2. Enhanced Transparency: Tracks the movement of goods, reducing tax evasion.
3. Efficient Logistics: Eliminates the need for physical checks, speeding up transportation.
4. Reduced Costs: Minimizes transit delays and associated costs.

Penalties for Non-Compliance

Non-compliance with E-Way Bill regulations can lead to:

1. Monetary Penalty: Up to ₹10,000 or the amount of tax evaded (whichever is higher).
2. Seizure of Goods and Vehicle: Until the penalty is paid or resolved.