E-Way Bill Compliance for International Goods Movement
This article clarifies the e-way bill requirements for both importing and exporting goods under GST. It details the various stages of import and export procedures, outlining when an e-way bill is mandatory and when exemptions apply. The guide also provides specific instructions for filling out e-way bill particulars for international transactions and discusses its applicability to high sea sales.
International trade, encompassing both imports and exports, significantly impacts a nation's economy by influencing foreign exchange earnings. When considering the movement of goods globally, understanding the e-way bill requirements for importation and exportation is essential. Generally, an e-way bill is mandatory for inter-state goods movements exceeding Rs 50,000 in value, with certain relaxations for intra-state transport.
Recent Updates on E-Way Bill Regulations
Important updates regarding e-way bills include:
- August 29, 2021: Taxpayers were temporarily exempt from e-way bill blocking for non-filing of GSTR-1 or GSTR-3B between May 1, 2021, and August 18, 2021, specifically for the March-May 2021 period for monthly filers and the relevant quarter for QRMP taxpayers.
- August 4, 2021: The blocking of e-way bills due to GSTR-3B non-filing resumed from August 15, 2021.
- June 1, 2021: The e-way bill portal confirmed that a suspended GSTIN cannot generate e-way bills, although it can be listed as a recipient or transporter on a generated e-way bill. Additionally, the 'Ship' transport mode was updated to 'Ship/Road cum Ship' to accommodate multimodal transport, allowing users to enter both vehicle and bill of lading details, which assists in ODC benefits and vehicle detail updates for road movements.
- May 18, 2021: The CBIC (Notification 15/2021-Central Tax) clarified that e-Way Bill generation blocking applies only to the defaulting supplier's GSTIN, not to the defaulting recipient's or transporter's GSTIN.
Defining Import and Export Under GST Legislation
The Goods and Services Tax (GST) Act defines import as bringing goods into India from abroad, while export involves sending goods from India to an overseas location. Under the Integrated Goods and Services Tax (IGST) Law, importing goods is classified as an inter-state supply, subject to IGST. Conversely, exporting goods is categorized as a zero-rated supply, meaning no tax is imposed on such transactions.
E-Way Bill Application for Import and Export Operations
Given that imports are treated as inter-state transactions, and e-way bills apply to such movements, it is essential to understand when an e-way bill must be generated for both import and export scenarios.
The typical import process involves several key stages:
- Stage 1: Arrival at Port/Airport: Goods are considered imported once they arrive at an Indian port or airport.
- Stage 2: Movement to ICD/CFS: Upon arrival, goods remain under customs control and are moved to an Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance. This specific movement is exempt from e-way bill generation as per Rule 138.
- Stage 3: Clearance for Home Consumption: From the ICD or CFS, the importer files the bill of entry, pays customs duties, and the goods are cleared for movement to their final destination, such as the importer's factory or warehouse. An e-way bill is mandatory for this leg of transportation.
- Stage 4: Bonded Warehouse Storage: Alternatively, goods may be stored in a bonded warehouse before final clearance. Movement from the ICD to a bonded warehouse is exempt from e-way bill requirements. However, an e-way bill becomes necessary when these goods are eventually moved from the bonded warehouse to the importer's factory.
The export process also has distinct stages:
- Stage 1: Movement to ICD/CFS: An e-way bill is required when goods are transported from the exporter's business premises or warehouse to an ICD or CFS.
- Stage 2: Movement to Port: The transportation of goods from an ICD/CFS to the port for export is exempt from e-way bill requirements. Additionally, certain goods like petrol, diesel, kerosene, and pearls are generally exempt from e-way bills, an exemption that also applies to import and export scenarios. Specific movements also qualify for e-way bill exemption, including:
- Transit cargo moving to or from Nepal or Bhutan.
- Goods transported between customs ports/stations or between ICD/CFS and ports, provided they are under customs bond, supervision, or seal.
- Movement between a customs area and an ICD, or vice versa, similar to the exemption described in the import process.
E-Way Bill Generation Procedures for Imports and Exports
While the e-way bill generation portal and basic steps are consistent for both import and export transactions, users must consider specific details relevant to these international movements:
| E-way Bill Field | For Imports | For Exports |
|---|---|---|
| Transaction Sub-type | Import | Export |
| Document Type and Number | Bill of Entry | Tax Invoice for Export of Goods |
| Bill From | Unregistered Person (URP) | Exporter's details (name, GSTIN, etc.) |
| Dispatch From | Pin code 999999; 'Other Countries' for State | Exporter's business or warehouse address |
| Bill To | Importer's details (name, GSTIN, etc.) | Unregistered person outside India (mention URP) |
| Ship To | Importer's business or warehouse address | Pin code 999999; 'Other Countries' for State |
| Transportation Details | Transporter details (vehicle info, transporter ID) | Transporter details (vehicle info, transporter ID) |
Determining the e-way bill's validity hinges on the distance goods will travel. For import and export scenarios, the starting point for this distance calculation is crucial:
- For Imports: The e-way bill is generated once goods are cleared for domestic use. The distance calculation for validity starts from the ICD and extends to the importer's final business location.
- For Exports: An e-way bill is created when goods are transported to the port for export. The validity distance is calculated from the exporter's warehouse or business premises to the port.
E-Way Bill Requirement for High Sea Sales
High sea sales, which occur outside India's territorial limits and are not covered by the aforementioned import/export stages, do not necessitate an e-way bill. This reflects the government's aim to ease compliance for businesses engaged in international trade. Streamlining the process further involves importers and exporters ensuring all necessary documents, such as shipping bills and bills of entry, are accurately prepared and any required e-way bills are valid.