Understanding the Concept of Eway Bill
India is vigorously taking various measures to establish itself among the developed economy of the world. One such measure is the newly implemented taxation act, GST – Goods and Services Tax. It is the biggest tax reform ever happened in the history of Indian Economy.
With GST came along a new bill for the goods in the movement which are going from one to another place. Here in the post, we will discuss everything about what is E-Way bill in India.
E-Way Bill in India – The Concept of E-Way Bill
E-Way Bill aka Electronic Way Bill is an electronic document containing the unique bill number for the consignment related to the goods in the movement. The bill can be generated on the common portal.
The E-Way bill is meant to be generated on the goods in movement with the value more than INR 50,000.
The E-Way bill also has the unique bill number. This number gives authentication to a particular consignment of goods. The EBN is carried by three parties – the supplier, the recipient and the transporter.
Who so ever be carrying the consignment, it is mandatory for the one to carry E-Way Bill during the transportation of goods or commodities.
The document has given uniformity to the enterprises to make deals with the uniform billing format. It has made the tracking of goods in movement quite simple. There are many other features of E-Way Bill that we will discuss further in this post.
Major Features of E-Way Bill
Following are listed the most prominent objectives of E-Way Bill:
- E-Way bill offers the facility to have proper control over the tax evasion.
- You need not have to carry or manage different e-ways bill now. There is a single format of the e-way bill which is being followed throughout the country.
- Through E-way, the movement of goods now becomes much easy and smooth. Goods can be moved hassle-free throughout the country.
- The verification of the e-way bill now becomes easier.
- With e-way bill launched, there is no need of carrying transit pass during the movement of goods in the various state within the country.
With all these amazing features, the e-way bill gets widely accepted throughout the country. It is an easy process. It also helps in managing the moving goods without any transit problem and helps in saving money, time and process.
But have you ever wondered on what to require to generate the e-way bill?
Here are the major prerequisites to generate E-Way Bill:
- The first and the foremost step is to register yourself on the portal of E-Way Bill.
- If you are dealing with the movement of goods via roadways, then it is mandatory for you to register your vehicle number or transporter ID.
- In case if you deal in the movement of goods via ship, airways or railways, in that case, a transporting document number is needed with its date.
Benefits of E-Way Bill
- The E-Way Bill offers complete transparency in the process of the transaction.
- The transparency leads to the elimination of corruption. The E-Way has lessened the chances of corruption at check-post and in the offices.
- One of the benefits of E-Way bill is that it is eco-friendly. All the process of E-Way bill is done through online basis thus its save tons of papers and trees.
- E-way helps Government to generate more revenues.
- All the traders who previously used to visit tax office for compliance procedures are not required to visit the offices anymore.
- The time for vehicles at the check-post is highly reduced. Now the vehicles do not have to wait in a long queue at the check-post for the clearance. E-Way makes every process easy and fast.
- For the officials, E-Way bill comes as a productive tool which does not let them to spent time in the repetitive tasks rather they can work on the analytical work more and get more productive.
- One of the most important benefits of E-Way Bill is that the system, as well as the portal of E-Way Bill, is user-friendly. It is easy to use and also facilitates dealers to self-download the e-way bill.
Who Should Generate EWB
Till now we have discussed the basics of E-Way Bill, it’s prerequisites, features, and its benefits. Now we are going to throw some light on the eligibility of generating the e-way bill.
We have already discussed that the generation of the e-way bill becomes a necessity if the amount of consignment/goods in the transaction have the value more than INR 50,000/-.
So now the question arises who can generate e-way bill? and the answer to this question lies in the points stated below:
- Registered Person generates e-way bill during the movement of goods of value more than 50,000/-.
- An Unregistered Person also has to generate an e-way while sending goods to the registered person. In this case, the receiver of the consignment must make sure if the supplier met with all the compliances like a supplier.
- E-Way bill can also be generated by the transporter who is carrying the consignment of goods via either of the following modes of transportation: Road, Air, Rail, and Etc. The supplier does not generate the e-way bill in this case.
E-way Bill and It’s Validity Period
The Validity period of the e-way bill is based on the date and the time of the generation of the e-way bill. Another base of the validity of e-way is the distance covered by the consignment. The type of conveyance also holds a prominent place in e-way bill validity.
For better understanding, follow the chart:
Convenience Type Distance Covered Validity Period
For Regular Vehicles
For every 100 km or its partFor additional 100 km
1 DayAdditional 1 Day
For Over Dimensional Vehicles
For distance less than 20 kmsAdditional 20 km
1 DayAdditional 1 Day
The Concluding Words
E-way bill is listed among many major economic changes happened in the recent times. The long-term vision of Government to make the economic condition of India more stable and strong, Implementation of E-way bill is a commendable step taken by Government of India. The long-term vision of implementing e-way bill helps India in becoming a stable and strong economy in the word.
The teething problems are inevitable, we have to wait and watch for the favourable long terms effects e-way bill under GST.