With the inception of the GST or Goods and Service Tax, the business segment has gone through a considerable change. GST, which has constituted various indirect taxes, has brought a wonderful change in the way taxes are being gathered. Together with this, the logistics had a complicated procedure earlier, which has now been made easier with the set-up of the Eway bill system.
The business rules and regulations are being checked by the government to support and furnish internal business and trade relations in the country. These provisions are being formed by the government in pursuance of increasing the country’s GDP, which will assist us in supporting our stand in the international economic outlook. In this condition, businesses are getting new chances for growth.
Now, let us figure out this billing system in detail.
What is the Eway Bill System?
The Eway bill is an electronic way bill that must be generated when shipping goods of over Rs. 50,000 via vehicle. The bill is specifically generated if the taxpayer is listed on the portal of the e-way bill. After producing this bill, the unique EBN or E-way Bill Number is assigned to the supplier, transporter, and recipient.
What is an Eway Bill?
The e-way bill is a new type of document brought in by the government to check tax bypassing under the VAT or Value Added Tax laws. The e-way bill brings together all standard documentation processes specified under the GST (Goods and Service Tax) rule. Every listed person who is involved in the sending of goods is needed to produce the e-way bill in spite of it being an interstate or an intrastate movement. The e-way bill is needed to be produced if there is a shift of goods in a vehicle or conveyance of value over Rs. 50,000 (either every invoice or the total of all invoices of all those movables in the conveyance or vehicle).
Benefits of Eway Bill
The government foresees the latest e-way bill system to offer many benefits. The old process of posting inspectors physically interface with those sending goods is offering a way to a new system of online interfacing that will result in the removal of state boundary checkpoints. Finally, the digital interface system will ease the quicker movement of goods, increase the turnaround time of trucks, and assist the logistics industry by allowing an increase in the average distances travelled. All of these advantages will decrease travel time in addition to travel costs. Maybe the most significant advantage of the latest e-way bill system is its use as a powerful tracking tool for the government to verify tax artifice.
Who Can Generate an Eway Bill?
As per the regulations imposed by the Goods and Service Tax Act, there are 3 parties who are needed to set up an e-way bill. These are as follows:
(1) Unregistered Individual
An e-way bill needed to be produced by an unregistered individual, too. When a shipment is being delivered by an unregistered individual (supplier) to a registered individual, it is the liability of the registered individual (recipient) to make sure all the conformities are being fulfilled by the unregistered individual while the shipment is being transported.
(2) Registered Individual
If the value of a shipment that is being sent or obtained is over Rs. 50,000, an e-way bill needs to be produced essentially. An e-way bill can be produced by the registered individual or the transporter whether the value of the goods being sent is below Rs. 50,000.
(3) Transporters
There is a procurement for transporters to set up e-way bills for carrying goods via rail, road, air, etc. The transporter requires generating an e-way bill if the supplier has not produced the e-way bill.
Methods to Generate an Eway Bill?
A supplier or recipient can produce an Eway bill on the official portal. Now let us find out the complexities coming in the way of generating the bill:
- All details with regard to the sent goods are required to be supplied by the registered individual in Part A, which is the section of Form GST-INS-01.
- To auto-populate Part A of the form, the tax statement can be uploaded by the registered individual, which is distributed in Form GST-INV-01 for auto-populating Part A of the Form.
- Once this is completed, the consignor or consignee will be required to provide the information in Part B of Form GST-INS-01 and then produce the e-way bill relying on the details provided in Part A.
- Once the e-way bill is produced, a specific e-way bill number will be issued and made available to the three parties – the transporter, the supplier, or the recipient.
- The recipient is needed to interact about the approval or denial of the shipment, and if not, the shipment will be considered accepted within the time of 72 hours.
What is the Validity of the E-way Bill?
An e-way bill’s validity is determined by the date and time of producing the e-way bill. The validity of the bill can be increased by the generator either 4 hours before / 4 hours after the end of the validity of the e-way bill.
Documents Needed for Producing an Eway Bill
- The Invoice, Bill of Supply, and Challan associated with the shipment of the goods.
- Transporter ID or Vehicle Number (For sending goods via road).
- Transport document number, Transporter ID, and date on the document (For sending goods via air, rail, or ship).
Final Words
The business world in India is going through a change in major regions with the number of provisions that are being made by the Indian government for simple business operations. The set-up of the Eway bill system has assisted in streamlining businesses to a higher extent. Now, the e-way billing system is modifying the way logistics have been working. And, with easy procedures, interstate with intrastate trade relations will enhance, which will assist in developing new business possibilities.
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