An electronic invoice is a document introduced under the GST regime that originates before the transport or shipment of goods worth more than INR 50,000 within the state or between states. A physical copy of the electronic invoice must be present with the carrier or the person in charge of the convention and must include information such as merchandise, consignee, shipper, and carrier. The e-way bill was implemented throughout the country on April 1, 2018.
Why does the e-way bill stop?
The provisions of the GST electronic invoice were mainly directed to a single national electronic invoice, which can be used by suppliers and carriers throughout the country. Until the preparation of this national electronic bill, the states were authorized to continue with their separate electronic billing system. However, the GST Council received a series of representations from the business and transport communities, stating that this would be a non-accounted movement of goods, so it would be necessary. As a result, the GST Council reviewed the availability of hardware and software necessary for the nationwide implementation of the e-way bill and announced a renewed date after discussion with all states.
Documentation, inspection, and verification for e-way bill
The following documents have to be kept by the person in charge of the cargo or means of transport:
- Supply or delivery invoice or invoice, and
- A physical copy of the e-way bill or e-way bill number.
In place of verification, the officer can stop any vehicle to verify the e-way bill or e-way bill number in physical form for all interstate and interstate business movements. On misgiving of tax evasion, an officer may conduct out physical verification of the vehicle after receiving approval from the Commissioner or an authorized officer on his behalf. If physical verification of the vehicle is done at one place, within the state or in another state, no physical confirmation will be performed again during transit, unless specific tax avoidance information is later available.
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After each inspection, the officer must file the details of inspection of goods in Part A of Form GST EWB 03 within 24 hours of inquiry and the final report must be filed within 3 days of inspection in Part B of Form GST EWB 03. If the vehicle is stopped for more than 30 minutes, the carrier has the option to file a complaint by loading the details on Form GST EWB 04.
GST e-way invoice format
GST has 2 parts in e-way bill format: Part A and Part B.
Part A of the e-way bill on Form EWB 01 is intended to collect shipping details, usually, invoice details. Consequently, the following details have to be captured.
- Recipient GSTIN: Specify the recipient’s GSTIN number.
- Place of delivery: Here you have to mention the pin code of the place where the products are delivered.
- Challan or Challan Number: Specify the goods or challan number against which the goods are supplied.
- Price of goods: Specify the shipping price of the goods.
- HSN Code: Enter the HSN code of the goods being transported. If your sales volume is up to 5 million rupees, then you need to mention the first 2 digits of the HSN code. If it is more than Rs 5 million, then 4 digits of HSN code is required.
- Reason for Transport: The reason for transport is predetermined and you must select the most appropriate option from the list.
- Transport document number: refers to one of the merchandise entry numbers, railway entry number, airway receipt number or bill of numbers.
Frequently asked questions about the electronic invoice
What is the GST e-way bill?
An electronic invoice means an electronic invoice. This is a unique invoice number that is generally generated for specific shipments associated with the movement of goods. However, it should be noted that the implementation of the electronic bill was postponed when the GST entered into force on July 1, so that its total and final complaint would be the same. States like Gujarat continued with Form 402 in GST and clear rules were established to help companies complete GST Form 402 online until the GST bill came into effect.
When will the e-way bill come into effect?
It is applicable to the value of any shipment above INR 50,000. In the case of an internal supply of goods of unregistered persons, the electronic invoice is applied.
When should an electronic invoice be generated?
The electronic invoice must be generated before the movement of goods begins.
What is the validity of the electronic invoice?
Less than 100 KM: 1 day
Every 100 km or more: 1 additional day
The period of validity will be counted from the moment of the generation of the electronic invoice. The Commissioner may extend the period of validity of the electronic invoice to certain categories of goods, as specified in the notification issued in this regard.
Who must generate an electronic invoice?
When the goods are transported by a registered person, their vehicles, rental vehicles, railroads, airports, and other suppliers have intermediate costs.
When the goods are delivered to a carrier, the carrier must generate an electronic invoice. In this case, the registered person must declare the details of the products in a common portal.
In the case of an unregistered person’s internal supply, the recipient of the supply carrier must generate an electronic invoice.
What is the process to generate an electronic invoice?
The GST form EWB-01 is an electronic invoice form. It includes Part A, where the description of the products is provided, and Part B includes the vehicle number.
Can an electronic invoice be generated for a shipment of less than INR 50,000?
Yes, registered persons or carriers can generate electronic invoices, although this may not be mandatory.
What happens if several shipments are carried in a vehicle?
The carrier must generate a consolidated electronic invoice on the GST form EWB 02 and indicate the serial number of the electronic invoice separately for each shipment.
In the generation of the electronic invoice, will any reference number be generated?
In the generation of electronic invoices, in the common portal, a unique electronic invoice number called ‘BN EBN’ will be made available to the supplier, recipient, and carrier.
What happens if the goods are transferred from one vehicle to another during transit?
Before transferring the goods to another vehicle and for a greater movement of said goods, the carrier must update the details mentioned in the electronic invoice in the common portal in the Form GST EWB 01
Is there any possibility to generate or cancel the e-way bill through SMS?
Yes, it is possible to generate and cancel E-way bill facilities by using SMS.
What happens if there is an error or incorrect entry in the electronic invoice?
If there is incorrect information or an error in the electronic invoice, it cannot be corrected or edited. In case of errors in electronic invoices, the only option is to cancel the electronic invoice and generate a new electronic invoice with the correct details.