The E-WayBill system now requires businesses to include 6-digit HSN codes. Before we move further, let's familiarise ourselves with what E-waybill is.

E-wayBill is an electronic document for mentioning goods worth rs. 50,000 and more. The goods mentioned in e-way bill are being moved from one place to another.

These documents are made by GST businesses, with an E-WayBill number, which is shared with the supplier, recipient, and transporter.

Update on E-WayBill-

As per a new update on 1st February 2024, now the e-waybill system requires businesses to share the 6-digit HSN code for all the Business-to-Business and Export transactions by the taxpayers whose Annual Aggregate Turnover is Rs. 5 Crores+.

And if you have AATO less than Rs. 5 Crores, then you must provide at least a 4-digit HSN code.

This validation has been implemented in the e-way bill system from 1st February 2024. Hence, you, the taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes as per their AATO when they generate your e-way bills via web and API systems from 1st February 2024.

This new rule on e-waybills is being implemented so that the government, can easily track the movement of goods accurately and prevent tax evasion if any.

4 important things to know about E-WayBill

To understand more about this update on e-waybill, who can do it, how can you generate an e-waybill, which form to fill, which part of the form to fill,

Person(s) who can generate e-waybill

When can you generate an e-waybill

E-waybill Form Part

Form

GST Registered person

Before movement of goods

Part A

GST EWB-01

GST Registered person who is consignor or consignee (mode of transport may be owned or hired) OR is the reciever of goods

Before movement of goods

Part B

GST EWB-01

GST Registered person is consignor or consignee and goods are handed over to transporter of goods

Before movement of goods

Part B

Part B of FORM GST EWB-01 (The GST registered person shall present the information related to the transporter in Part B of FORM GST EWB-01)

Transporter of goods

Before movement of goods

Part A

Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01

An unregistered person under GST but the reciever of the goods is a GST registered person

To be done by Supplier if her is the recipient.

Part B

Part B of FORM GST EWB-01 (If the goods are transported for a distance of 50 kms or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.)




Part A of FORM GST EWB-01. (If supply is made by air, ship or railway mode, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the reciever.

When you do not need an e-wayBill?

In a few situations, for example, even if it is a GST registered business, E-Way Bill is not required.

Transportation by non-motorized vehicles: If you're transporting goods by hand, bicycle, bullock cart, etc., you don't need an E-Way Bill.

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Specific exempted goods: Specific goods that are exempted from E-Way Bill requirements are liquefied petroleum gas for domestic use, kerosene oil under PDS, postal baggage, precious metals and stones, used personal effects, unworked coral.

Short-distance movement: Within the same state, an E-Way Bill isn't required for goods transported up to 50 kilometers:

Intra-state movement: Goods moved up to 50 km within the same state are exempt from obtaining an E-Way Bill for movement in the following situations:

-Between the consignor and the transporter, also known as the consignor-transporter movement.
-Between the transporter and the consignee, also known as the transporter-consignee movement.
Weighbridge movement : Up to 20 km in the same state, in case of transporting the goods to a weighbridge and coming back, the movement is exempt from obtaining an E-Way Bill, if the movement is accompanied by a delivery challan.

Government and defense:  No, where government or local authority are shipping by rail, or the Ministry of Defence are consignor or consignee.

Customs and bonded goods: E-Way Bills are not needed for the transportation of:
- Goods from customs port/airport to an Inland Container Depot or Container Freight Station for clearance under customs.
-From ICD/CFS to a customs port/airport under customs bond under customs supervision or seal
For your record, greater accuracy and simplicity, always obtain this information from the official e-waybill system or tax consultant.

Conclusion: Your Updated E-wayBill

This is in fact the government's stride towards optimum rationalization and simplification of the system. Hence, by such changes, businesses are bound to run within compliance and contribute to a more efficient administration of tax.

Tap to know how ▶ GimBooks App can help you easily and quickly to manage your business with e way bill login in mobile.

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