1st July 2017 has been marked as an unforgettable date in the history of Indian Economy. It’s the very date on which 17 years old dream of the former Prime Minister Atal Bihari Vajpayee came true. The dream was to bring the country under one nation-one tax system and GST was implemented.
With the implementation of GST, various tax reforms have taken place up till now. Among all the reforms, implementation of E-Way bill is the one.
GST Council in its 26th meeting decided to implement e-way bill in a staggered manner. It has decided to put the inter-state e-way bill into action from 1st April 2018 and intra-state from 15th April 2018 in a way that whole nation would be covered in strategic manner by 1st June 2018.
What is E-Way Bill Under GST Bill? A Brief
In the simple words, E-Way bill is an electronic bill which is generated for the consignment of goods in the movement. The e-way bill is always compact with a unique bill number. This number provides authentication to the consignment of goods.
Any registered taxpayer who wishes to send any goods from one place to another, or wishes to initiate the movement of goods, which is valued more than INR 50,000 is compelled to generate the e-way bill.
Now the question arises, is an e-way bill always required in the movement of goods? Are there any situations where e-way bill does not require?
To throw some lights on the same, we have brought to you this post in which we will discuss all the situations where e-way is required and where not. Lets’ proceed.
The Situations Where E-Way Bill is Required?
You know, as per the rules go, any consignment with the movement of goods of value more than 50000 Indian Rupee, will come under the provisions of E-Way Bill.
While some rules state that a registered taxpayer has to generate e-way bill irrespective of the value of consignment. It means, even if the consignment is less than INR 50000, one has to generate the e-way bill.
Following are the two conditions where the generation of the e-way bill is mandatory irrespective of the value of consignment of goods:
1. When Consignment of Goods Move from One to Another State by The Principal to Job Worker
A person who takes part in any kind of treatment in the process of manufacturing of goods by a registered taxable person who belongs to the goods is called job worker.
In simple words, a person who takes part in the manufacturing cycle of any product such as initial process, assembly, packing or any other process is referred to as the job worker.
The rule of CGST states that all the formalities related to the e-way bill must be completed before commencement of the movement of goods.
In this case, the e-way bill must be issued in all the cases whether the movement of goods is related to the supply of goods or movement of goods other than then supply.
The case other than supply is considered as the job work. Here are some major reasons where an e-way bill is required irrespective of consignment’s value:
- Movement of Goods from the principal of one state to the job worker of another state.
- Generation of the e-way bill prior starting to the movement of goods.
- A registered job works generate the e-way bill.
- When the goods are returned to the principle by the registered job worker, the e-way bill is generated by the job worker.
- Generation of the e-way bill by principal or transporter if job worker is unregistered.
2. Generation of E-Way Bill in Case of Inter-State Movement of Handicraft Goods by Unregistered Person
Any unregistered person or a person who is exempted from the requirement of obtaining registration when transport handicrafts goods from one state to another, the e-way bill is generated irrespective of the value of consignment.
Following are some of the handicraft goods for which generation of the e-way bill is required:
- Carpets, Rugs, and Durries,
- Textile Hand Painting
- Theatre Costumes
- Stones Inlay Works
- Carved Stones Products
- Metal Bidriware
- Musical Instruments
- Dolls and Toys
- Folk Paintings, Madhu Bani, Patachitra, Rajasthani Miniature and etc.
When is E-Way Bill Not Required?
Every business after the implementation of GST is being busy in rolling out the smooth functioning of the e-way bill. Everyone wants to know when an e-way bill is required and what conditions have to be fulfilled for the same.
But there are some situations where businesses do not require to generate an e-way bill. Proceeding ahead we are going to discuss all those cases where the generation of the e-way bill is not mandatory irrespective of the value of goods.
Following are the situations where an e-way bill is not required:
- When consignment transfer from air cargo, airport or customs port to Inland Container Depot and Container Freight Station for clearance by customs people.
- When a consignment is transferred through a non-motor vehicle.
- When consignment transfer from ICD and CFS to air cargo, airport or customs port.
- When consignment transfer from one to another customs station under custom supervision or seal of customs.
- When consignment transfer due to defence formation under Defence Ministry.
Following are the List of goods, movement of which does not require the generation of the e-way bill:
- Crude Petroleum,
- High-Speed Diesel,
- Natural Gas,
- Aviation Turb7ine Fuel,
- Jewellery, Goldsmiths and silversmith’s wares and other articles and many more.