Understanding E-Way Bills in Jharkhand Under GST Regulations
This article details the electronic waybill (e-way bill) system as applied in Jharkhand under the Goods and Services Tax (GST) framework. It covers the historical context before e-way bills, the procedure for generating them for both intra-state and inter-state goods movement, and the roles of various stakeholders. The article also explains the methods of e-way bill generation, its validity, and the processes for rejection and cancellation, aiming to clarify compliance requirements for taxpayers in Jharkhand.
This article provides a comprehensive overview of the electronic waybill (e-way bill) system within Jharkhand under the Goods and Services Tax (GST) framework. Key updates regarding e-way bill regulations have been issued periodically. For instance, between May 1st and August 18th, 2021, taxpayers were temporarily exempt from e-way bill blocking due to delayed GSTR-1 or GSTR-3B filings for specific periods. However, e-way bill blocking for GSTR-3B non-filing recommenced from August 15th, 2021. Significant changes were also implemented, such as clarifying that a suspended GSTIN cannot generate an e-way bill but can receive one. The transport mode 'Ship' was enhanced to 'Ship/Road cum Ship' to accommodate multimodal logistics, including entering vehicle numbers and bill of lading details. Furthermore, the Central Board of Indirect Taxes and Customs (CBIC) clarified through Notification 15/2021-Central Tax that e-way bill generation blocking applies only to the defaulting supplier's GSTIN.
Prior to E-Way Bill Implementation
Jharkhand is a state with significant mining, manufacturing, and trading activities, contributing substantially to India's economy. Before the introduction of GST and the e-way bill system, Jharkhand utilized a permit system for tracking goods movement. This involved generating permits like Form Sugam G, Sugam P, or Sugam B for both intra-state and inter-state taxable goods transportation, as well as for returns, through the state's commercial tax department's website. With GST, the requirement shifted: any goods valued over INR 50,000 transported within or across state borders necessitate an electronic waybill. This is obtained by registering the consignment online. Suppliers and transporters must submit relevant information on the GST portal, which then provides a unique e-way bill number to all involved parties, including the supplier, recipient, and transporter, via the common portal.
Interstate Movement of Goods via E-Way Bill
A Central Government order issued on March 7th, 2018, integrated the inter-state movement of goods into the National E-way Bill system, effective from April 1st, 2018. Consequently, for any goods transported from Jharkhand to another state, dealers must generate an e-way bill on the portal. E-way bills for inter-state movement of goods became operational in Jharkhand from April 1st, 2018, as per Notification dated March 27th, 2018.
Key Participants in E-Way Bill Generation
The e-way bill system was designed to address the needs of various stakeholders effectively. The four primary parties involved in the e-way bill process are:
- Suppliers: They are responsible for generating e-way bills and can reject e-way bills incorrectly generated against their name by other parties.
- Recipients: Similar to suppliers, recipients can generate e-way bills and reject any bills generated by other parties in their name if the consignment is not theirs.
- Transporters: Transporters generate e-way bills, create consolidated e-way bills, and update vehicle numbers for e-way bills assigned to them by taxpayers for transportation.
- Department Officers: These officials are tasked with verifying e-way bills and the consignments being transported under those bills.
Methods for E-Way Bill Creation
E-way bills can be generated using several convenient methods:
- Through the dedicated online portal.
- Utilizing the SMS-based facility.
- Via an Android application.
Online Portal for E-Way Bill Generation
To generate e-way bills using the online portal, dealers must visit the NIC Portal. They are required to register on the portal using their GSTIN before they can begin generating e-way bills for goods movement.
SMS-Based E-Way Bill Generation
Users need a registered mobile number to activate SMS-based e-way bill generation on the portal. Detailed activation steps are provided here.
App-Based E-Way Bill Generation
The e-way bill system also supports generation via an Android application. To enable this, a user selects 'For Android' under the 'Registration' option, chooses the relevant user from a dropdown, and the system auto-populates their name and place. The user then activates the Android app for the selected individual by entering their IMEI Number and saving the details within the e-Way Bill system. Once these steps are completed, the designated user can generate e-way bills through the Android application.
E-Way Bill Validity Period
The validity duration of an e-way bill is determined by the distance goods are transported. For standard vehicles or transport methods, a validity of one day is granted for every 100 kilometers or any part thereof. For Over Dimensional Cargo (ODC) vehicles, one day of validity is provided for every 20 kilometers or any part thereof. The validity period concludes at midnight on the final day.
| Type of conveyance | Distance | Validity of EWB |
|---|---|---|
| Other than Over dimensional cargo | Less Than 100 Kms | 1 Day |
| For every additional 100 Kms or part thereof | additional 1 Day | |
| For Over dimensional cargo | Less Than 20 Kms | 1 Day |
| For every additional 20 Kms or part thereof | additional 1 Day |
Procedure for Rejecting E-Way Bills
E-way bill details are made accessible to the registered recipient on the common portal, who is then required to confirm acceptance or rejection of the consignment. The system allows registered persons to view all e-way bills generated against their name by other registered persons. If a consignment does not belong to them, users have the option to reject these e-way bills. For example, if a recipient does not receive the goods specified in an e-way bill, they can reject it using this function. To do so, the user needs the specific e-way bill number they wish to reject. If no acceptance or rejection is communicated within 72 hours of the e-way bill's generation or the goods' delivery, whichever is earlier, the details are automatically considered accepted.
How to Cancel an E-Way Bill
Once an e-way bill has been generated, it cannot be modified to correct errors. However, it can be canceled within 24 hours of its generation. For instance, if goods are not moved as planned or incorrect information was entered, the user can cancel the e-way bill. Before proceeding with cancellation, the user must have the 12-digit e-way bill number ready. When selecting the 'Cancel' sub-option under 'E-way bill', the user enters the number and clicks 'go'. The specific e-way bill will appear, and after providing a valid reason for cancellation, the user can confirm the process. It is illegal to use a canceled e-way bill.
It is important to note that an e-way bill, once generated, cannot be deleted but can be canceled by its generator within 24 hours. If an authorized officer has already verified the e-way bill, it cannot be canceled. Cancellation is permissible if goods are not transported at all or if their transportation deviates from the details provided in the e-way bill. While the e-way bill system aims to reduce tax evasion, streamline inter-state goods transportation, and minimize checkpoint delays, its success hinges on robust implementation. With effective execution, the e-way bill can serve as a powerful mechanism to ensure taxpayer accountability. Widespread and rapid adoption of the e-way bill system across all states will facilitate a uniform national process, greatly benefiting all inter-state suppliers.