E-way Bill is an Electronic Way Bill for movement of goods which has to be generated on the eWay Bill Portal under the GST system. A business owner who has registered for GST when goods valuing anything more than Rs. 50,000 are shipped interstate or intrastate. E-way bill can also be generated via SMS, Android app, etc. When you generate an E-way bill, a unique bill number is allocated and made available to the suppliers, transporters, and recipients.
Here are the components of an E-way bill:
- An E-way bill has details of the goods, the recipient, and the transporter.
- It consists of two parts Part A and Part B.
Part A has an invoice number, date, GSTIN of the supplier and recipient, HSN and value of goods, place of delivery, the reason for transportation, and transport document number.
Reasons an E-way bill needs to be generated:
Before the goods have to be shipped, the E-way bill should be generated –
- In relation to the supply
- For reasons other than a supply like a return
- Because of an inward supply from an unregistered person
Supply here could be a sale of goods and payment made, branch transfers or barter/exchange where the payment is by goods instead of in money
Importance of an E-way bill:
Here are some reasons why an E-way bill is important –
- It helps make the transport process of goods smoother as time is saved at checkpoints.
- It helps the government check tax evasion properly.
- It helps reduce transit delays and other paperwork.
- Everything about the transport is on record and therefore any logistical speed breaks are not there.
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