GST Registration & Return

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GST Registration in India

The Goods and Services Tax (GST) in India is structured around three primary components:

  • Central Goods and Services Tax (CGST): This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state.
  • State Goods and Services Tax (SGST): SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state.
  • Integrated Goods and Services Tax (IGST): This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.

GST registration is essential for the following persons:

  • Business Entities: Any enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states under GST, the threshold is Rs. 20 lakhs.
  • Service Providers: Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.
  • Exemptions: It's important to note that entities dealing exclusively in GST-exempted goods or services are not bound by these thresholds.
  • Previously Registered Entities: Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.
  • Inter-State Suppliers: Any entity or individual involved in the supply of goods across state boundaries.
  • Casual Taxable Entities: Those who undertake taxable supply occasionally.
  • Entities under Reverse Charge Mechanism: Businesses obligated to pay tax under the reverse charge.
  • Input Service Distributors & Agents: Distributors of input services, including their representatives.
  • E-Commerce Platforms: Operators or aggregators of e-commerce platforms
  • Non-Resident Taxable Entities: Individuals or entities that are non-resident but engage in taxable supply within India.
  • Supplier's Agents: Representatives who supply on behalf of a principal supplier.
  • E-Commerce Suppliers: Individuals or entities that offer goods or services through an e-commerce aggregator.
  • Online Service Providers: Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.

GST registration can be obtained voluntarily by any person or entity, irrespective of turnover. GST registration becomes mandatory if a person or entity sells goods or services beyond a certain turnover. For businesses that need to register, GST apply online allows for a quick and convenient process.

Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

  • Should not be providing any services.
  • The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.
  • Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States: Under GST, the following are listed as special category states - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies)*(Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.

Registering for GST offers a range of benefits to businesses:

  • Legal Compliance: Ensures that businesses remain compliant with tax regulations, thus avoiding any potential penalties.
  • Input Tax Credit: Businesses can claim credits for the GST they've paid on purchases, which can then be set off against the GST charged on sales, leading to a reduction in tax liability.
  • Inter-State Trade Ease: Encourages businesses to transact across state boundaries without facing tax-related challenges.
  • Elimination of Cascading Effect: By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced.
  • Competitive Edge: Being GST compliant can instil trust in potential customers, opening up more business opportunities.
  • Access to Larger Markets: Major corporations often prefer collaborating with GST-registered vendors.
  • Optimized Cash Flow: Efficient management and lower tax liability can enhance the cash flow within a business.
  • Enhanced Credit Rating: Maintaining a consistent and positive GST compliance record can boost a business's credit profile.
  • Legal Safeguard: A GST registration protects businesses and ensures their rights are upheld.
  • Simplified Compliance: The GST process is streamlined, enabling businesses to file returns and make payments online easily.
  • Transparent Operations: Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism.

The GST Certificate stands as an authoritative document provided by the Indian government to entities that are registered under the Goods and Services Tax (GST) framework. This certificate confirms a business’s legitimate Registration under GST and prominently displays key details such as the GST identification number, the business name, and official address.

Possessing an authentic GST Certificate is pivotal for enterprises because:

  • Tax Collection Authority: It empowers businesses to impose and gather GST from their clientele.
  • Tax Credit Claims: With this certificate, businesses can rightfully claim credits on the GST they’ve disbursed on their procurements and operational costs.
  • Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains:
  • Loan Applications: When seeking financial aid or loans, businesses might be asked to present their GST certificates to validate their authenticity.
  • Government Tenders: To be eligible and participate in official government tenders, the GST Certificate must often be produced as evidence of tax compliance.
  • Market Reputation: The certificate enhances a business’s stature in the market, reflecting its commitment to national tax regulations.

GSTIN, which stands for Goods and Services Tax Identification Number, is a distinctive 15-digit alphanumeric code allocated to every taxpayer who is registered under the GST framework in India. This number acts as the primary identifier for both businesses and individuals in the context of GST-related transactions and compliance. You will receive GSTIN after successfully submitting the application through the GST Apply online portal.

Businesses generating a turnover of less than Rs.20 lakhs can do the GST apply online voluntarily.. By doing so, they can benefit from advantages such as availing input tax credits, unrestricted inter-state sales, eligibility to list on e-commerce sites, and establishing a competitive stance against businesses that aren’t GST-registered. While this Registration isn’t a mandate, it paves the way for enhanced growth prospects and the potential for increased profitability.

Below, we have given the GST registration documents to use it as a checklist.

Sole proprietor / Individual
  • PAN card of the owner
  • Aadhar card of the owner
  • Photograph of the owner (in JPEG format, maximum size  100 KB)
  • Bank account details*
  • Address proof**
LLP and Partnership Firms
  • PAN card of all partners (including managing partner and authorized signatory)
  • Copy of partnership deed
  • Photograph of all partners and authorised signatories (in JPEG format, maximum size 100 KB)
  • Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)
  • Aadhar card of authorised signatory
  • Proof of appointment of authorized signatory
  • In the case of LLP, registration certificate / Board resolution of LLP
  • Bank account details*
  • Address proof of principal place of business
HUF
  • PAN card of HUF
  • PAN card and Aadhar card of Karta
  • Photograph of the owner (in JPEG format, maximum size 100 KB)
  • Bank account details
  • Address proof of principal place of business
Company (Public and Private) (Indian and foreign)
  • PAN card of the Company
  • Certificate of incorporation given by Ministry of Corporate Affairs
  • Memorandum of Association / Articles of Association
  • PAN card and Aadhar card of authorized signatory. The authorised signatory must be an Indian, even in case of foreign companies/branch registration
  • PAN card and address proof of all directors of the Company
  • Photograph of all directors and authorised signatory (in JPEG format, maximum size 100 KB)
  • Board resolution appointing authorised signatory / Any other proof of appointment of authorised signatory (in JPEG format / PDF format, maximum size 100 KB)
  • Bank account details
  • Address proof of principal place of business

~ GST RETURN ~

A GST Return is a detailed statement that captures all the financial transactions of a person registered under GST, reflecting revenues and expenditures. It is a mandatory submission for every holder of GSTIN to the tax authorities, allowing them to determine the net tax liability with precision.

The GST return filing encompasses several critical elements:

  • Purchases: It records in detail the purchases the taxpayer has made.
  • Sales: It provides a comprehensive log of the taxpayer’s sales activities.
  • Output GST (On Sales): It notes the GST charged on the taxpayer’s sales.
  • Input Tax Credit (GST Paid on Purchases): It lists the GST paid on purchases, which is eligible to be deducted from the GST owed on sales.

For those seeking guidance on GST return filing or support with managing their GST compliance, IndiaFilings offers GST software designed to streamline the process.

GST returns must be filed by any business or individual registered under the GST regime. This obligation applies to entities whose annual aggregate turnover surpasses the specified threshold, which is set by the tax authorities and may differ for various classifications of taxpayers, such as standard taxpayers and those opting for the composition scheme.

Within the Goods and Services Tax (GST) system, 13 returns cater to different facets of a taxpayer’s financial dealings. It’s important to recognize that not all taxpayers must file every type of return; the specific returns that need to be filed depend on the taxpayer’s category and the particulars of their GST registration.

Below is a snapshot of the 13 GST returns:

  • GSTR-1: Filed for disclosing details of outward supplies, essentially the sales.
  • GSTR-3B: A summarised return that outlines both sales and purchases, inclusive of tax payments.
  • GSTR-4: Applicable to those under the Composition Scheme, summarizing turnover and corresponding tax.
  • GSTR-5: For non-resident taxpayers conducting taxable transactions in India.
  • GSTR-5A: For providers of online information and database access or retrieval services.
  • GSTR-6: Used by Input Service Distributors for detailing input tax credit distribution.
  • GSTR-7: For entities required to deduct TDS under GST.
  • GSTR-8: To be filed by e-commerce operators reporting transactions on their platform.
  • GSTR-9: An annual comprehensive return summarizing all periodical filings over the fiscal year.
  • GSTR-10: The final return upon cancellation or surrender of GST registration.
  • GSTR-11: For those with a Unique Identity Number, claiming refunds on their purchases.
  • CMP-08: A quarterly statement for Composition Scheme taxpayers detailing tax liability.
  • ITC-04: For manufacturers to declare details about goods dispatched to and received from a job worker.

Additionally, there are return-related statements for input tax credits:

  • GSTR-2A (dynamic): Offers a real-time perspective of inward supplies as suppliers report.
  • GSTR-2B (static): Provides a fixed snapshot of inward supplies based on the suppliers’ filings.

For small taxpayers enrolled in the Quarterly Return Monthly Payment (QRMP) scheme, the Invoice Furnishing Facility (IFF) permits the declaration of B2B sales during the first two months of a quarter. Nonetheless, these taxpayers are obligated to remit taxes monthly using Form PMT-06.

GSTR-1 is the mandatory return for businesses to detail their outward supplies of goods and services. This encompasses all sales-related invoices and adjustment notes for the given tax period. Every regular taxpayer under GST, including those classified as casual taxable persons, is obligated to file GSTR-1.

Submission Deadlines

  • Monthly: Due on the 11th of the subsequent month for businesses whose yearly turnover exceeds Rs. 5 crore or for those not enrolled in the QRMP scheme.
  • Quarterly: Due on the 13th of the month after the quarter’s end for businesses participating in the QRMP scheme.

GSTR-2A is a dynamic, read-only return for the recipients or purchasers of goods and services, capturing details of all incoming supplies from registered GST vendors within a tax period. The information in GSTR-2A is filled automatically from the GSTR-1 returns of suppliers and the Invoice Furnishing Facility (IFF) data for those in the QRMP scheme.

Introduced in August 2020, GSTR-2B is a static read-only return that provides consistent ITC information sourced from the previous month’s GSTR-1 filings. It supports purchasers in matching their ITC claims for each tax period, advising on necessary actions for each listed invoice, including any need for reversals, ineligibility, or application of the reverse charge.

GSTR-2, an editable return, is presently deferred and was meant for registered purchasers to declare their inward supply of goods and services for a tax period. Initially planned to be auto-filled from GSTR-2A, its filing has been on hold since September 2017.

GSTR-3, a suspended monthly summary return for regular taxpayers, compiled concise figures of both outward and inward supplies, input tax credits, tax liabilities, and tax payments. It was automatically generated from GSTR-1 and GSTR-2 filings but has been deferred since September 2017.

GSTR-3B, a monthly summary declaration for normal taxpayers, summarizes outward supplies, input tax credits, and tax dues. Before submitting GSTR-3B, it is critical to reconcile sales and ITC details with GSTR-1 and GSTR-2B records.

  • Monthly: Due by the 20th of the month following the reporting month for taxpayers with an annual turnover above Rs. 5 crore.
  • Quarterly: Due by the 22nd of the month following the quarter for ‘X’ category states and by the 24th for ‘Y’ category states for taxpayers with a turnover of up to Rs. 5 crore in the QRMP scheme.

GSTR-4 is the yearly return for those under the Composition Scheme, due by April 30th of the subsequent financial year. GSTR-4 has replaced the prior quarterly submissions, with taxpayers now submitting a simplified challan via Form CMP-08 by the 18th following each quarter’s end

Under the Composition Scheme, businesses with goods turnover up to Rs. 1.5 crores may pay tax at a predetermined rate on their turnover. Service providers with a turnover of up to Rs. 50 lakh can opt for a similar benefit

GSTR-5, required by non-resident foreign taxpayers engaged in business in India, details their outward and inward transactions, adjustments, tax liabilities, and payments, with submissions due by the 20th of each month

GSTR-5A is the monthly summary for providers of Online Information and Database Access or Retrieval Services, due by the 20th of every month.

Input Service Distributors must file GSTR-6 monthly, reporting the ITC received and allocated, including detailed documentation related to the distribution of credits, by the 13th of each month.

Entities must deduct TDS under GST file GSTR-7 monthly, documenting TDS deducted, due and paid amounts, and any TDS refunds, with filings due by the 10th of the subsequent month.

E-commerce operators under GST must submit GSTR-8 monthly, recording the supplies made and tax collected at source, due by the 10th of the following month.

All GST-registered taxpayers must file GSTR-9 annually, summarizing their outward and inward supply details, taxes due, and paid. The due date is December 31st of the year after the

GST ReturnType of TaxpayerDue Date
GSTR-1Regular TaxpayerMonthly: 11th of the following month

Quarterly: 13th of the month following the quarter
GSTR-2A (Auto-generated)All TaxpayersAuto-generated, utilized for reconciliation purposes
GSTR-3BRegular TaxpayerMonthly: 20th of the following month
GSTR-4Composition Scheme DealerAnnually: 30th of April following the end of the financial year
GSTR-5Non-Resident Foreign Taxpayer20th of the following month
GSTR-6Input Service Distributor13th of the following month
GSTR-7Tax Deducted at Source (TDS)10th of the following month
GSTR-8E-commerce Operator10th of the following month
GSTR-9Regular Taxpayer (Annual)31st December of the following financial year
GSTR-9CRegular Taxpayer (Annual)Filed along with GSTR-9, by 31st December of the following financial year

If you submit GST returns late, you could face penalties and interest charges. Businesses should submit on time to avoid these costs. Here’s what you need to know about late GST returns:

  • Filing Returns is Required: Every registered taxpayer has to file GST returns regularly, even if there’s no business activity.
  • Delays Lead to More Delays: If you miss a filing deadline, you can’t file for the next period until you’ve filed for the previous one. This can lead to a pile-up of late returns.
  • Penalties for Late Filing: If you file GSTR-1 late, for example, you’ll get a penalty that shows up when you file GSTR-3B.
  • Interest on Late Tax Payments: If you owe taxes and pay late, you’ll be charged 18% interest per year on the amount you owe, starting from the day after the due date until you pay
  • Late Filing Fees: The law sets the late filing fee at Rs. 100 per day for each CGST and SGST, with a maximum of Rs. 5,000.
  • Annual Return Late Fees: For yearly returns like GSTR-9 and GSTR-9C, the late fee is capped at 0.25% of your turnover in your state or UT unless the government provides relief or changes the fees.

~ GST LUT FILING ~

LUT full form is Letter of Undertaking holds significant relevance within the context of the Goods and Services Tax (GST) framework. This document serves as a powerful tool for exporters, allowing them to engage in the export of goods or services without the obligation of immediate tax payment.

For all registered taxpayers engaged in the export of goods or services, it is mandatory to provide a Letter of Undertaking (LUT) using the Form GST RFD-11 form on the GST portal. This obligation is essential to facilitate exports without paying Integrated Goods and Services Tax (IGST).

The Eligibility criteria to obtain a LUT certificate include the following:

The Letter of Undertaking (LUT) is open for utilization by any registered taxpayer engaged in exporting goods and services. However, individuals facing prosecution for tax evasion exceeding Rs. 250 lakh or more are ineligible to benefit from this option.

  • Intent to Supply: The applicant should intend to supply goods or services within India, to foreign countries, or to Special Economic Zones (SEZs).
  • GST Registration: The entity seeking to avail the benefits of an LUT should be registered under the GST framework.
  • Tax-Free Supply: The desire to supply goods without the imposition of integrated tax is an essential requirement for LUT application.

LUT in GST holds a validity of one year, necessitating the submission of a fresh LUT for each subsequent financial year. Should the terms outlined in the LUT fail to be met within the designated timeframe; the privileges associated with it will be withdrawn, prompting the need for the exporter to provide bonds.

For other assessments, bonds are required when conducting exports without Integrated Goods and Services Tax (IGST) payment. LUTs and bonds are applicable in the following cases:

  • Zero-rated supply to SEZ: Exporting to Special Economic Zones (SEZs) without IGST payment.
  • Goods Export: Exporting goods to a country beyond India without IGST payment.
  • Service Export: Providing services to clients in foreign countries without IGST payment.

To apply for a Letter of Undertaking (LUT) under GST, you’ll need the following documents:

  • LUT Cover Letter: A request letter signed by an authorized person.
  • Eligibility: Ensure you meet eligibility criteria (no serious tax evasion cases).
  • Copy of GST Registration: Proof of your GST registration.
  • PAN Card of Entity: Identification using PAN card.
  • KYC of Authorized Person: ID and address proof of authorized person.
  • GST RFD 11 Form: Application form for LUT.
  • Copy of IEC Code: If involved in exports.
  • Canceled Cheque: From your associated bank account.
  • Authorized Letter: Granting power to the authorized signatory.

Choosing to file a Letter of Undertaking (LUT) brings a host of benefits to exporters, streamlining their export activities and optimizing their financial operations:

  • Tax-Free Export: Opting for the LUT certificate enables exporters to carry out their export transactions without the burden of immediate tax payment. This contrasts the alternative, where taxes are paid and later claimed as refunds for zero-rated exports.
  • Simplified Process: By utilizing the LUT certificate, exporters avoid the complexities of claiming tax refunds or engaging in follow-ups with the tax authorities. This translates to substantial time savings and operational ease.
  • Unblocked Working Capital: Funds that would have otherwise been locked as tax payments remain accessible for exporters. This is especially vital for small and medium-sized enterprises (SMEs) grappling with financing and working capital constraints.
  • Liberated Resources: Regular exporters find a consistent advantage with the LUT certificate. Once filed, the LUT remains valid for the entire financial year. This longevity minimizes the need for repetitive filings, allowing exporters to focus on their core activities.

By leveraging the benefits of the LUT certificate, exporters can navigate the realm of international trade with greater efficiency and flexibility.

~ GST E-WAY BILL ~

An E-way bill, short for electronic way bill, is essential for the movement of goods in both inter-state and intra-state transportation under the GST regime.

An E-way bill is an electronic document generated on the e-way bill portal (ewaybillgst.gov.in), which serves as proof of the movement of goods. It acts as a digital compliance tool under the GST framework, where the consignor or seller inputs relevant information about the goods before they are transported and generates an e-way bill on the GST portal.

The E-way bill includes important details such as:

  • Name of the consignor
  • Name of the consignee
  • Origin of the consignment
  • Destination
  • Proposed route

According to GST regulations, any person registered under GST who initiates the transportation of goods with a consignment value exceeding Rs. 50,000 must provide details of these goods in an E-way bill before the goods begin their journey.

The requirement for an e-way bill is mandated under Section 68 of the CGST Act and further detailed in Rule 138 of the CGST Rules, 2017.

The requirement to use an e-way bill for interstate supplies came into effect on April 1, 2018. It was extended to intrastate supplies in certain states (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Puducherry) starting April 25, 2018.

The e-way bill, crucial for the movement of goods in India, consists of Part A and Part B.

Part A of the e-way bill

Part A of the e-way bill involves gathering vital information about the consignment, primarily related to the invoice. The details required in Part A include:

  • GSTIN of the recipient, i.e., the person to whom the goods are supplied.
  • Pin code of the delivery location.
  • Invoice or challan number linked to the goods’ supply.
  • Value of the consignment, indicating the monetary worth of the transported goods.
  • HSN code of the goods. Businesses with a turnover of Rs. 5 crores should mention the first two digits of the HSN code, while those with a turnover above Rs. 5 crores need to provide a four-digit HSN code.
  • Reason for transportation, chosen from a list of predefined options.
  • Transport document number, which could be the goods receipt number, airway bill number, railway receipt number, etc.

Part B of the e-way bill

Part B of the e-way bill captures the transportation specifics. This includes the vehicle number for road transport or other conveyance details via rail, air, or ship. Part A and B are required to constitute a complete e-way bill, which is obligatory for transporting goods exceeding Rs. 50,000 in value, within or across state lines, under the GST framework.

An e-way bill is required to be generated before the dispatch of goods. It must encompass key details about the goods, including information about the consignor, recipient, and transporter.

The scenarios necessitating an e-way bill include:

  • For Supply of Goods: Whenever goods are supplied, an e-way bill is essential.
  • For Non-Supply Transactions: This category includes various situations such as:
  • Export/import of goods.
  • Returning goods.
  • Sending goods for job work.
  • Line sales.
  • Sales on an approval basis.
  • Supply of semi or completely knocked-down items.
  • Goods supplied for exhibitions or fairs.
  • Goods used for personal consumption.
  • In all these cases, generating an e-way bill ensures compliance with the necessary transport and tax regulations.

The generation of an eWay Bill is required in the following scenarios for individuals or entities registered under GST:

  • When goods over Rs. 50,000 are moved to or from a GST-registered person, the supplier and recipient must generate the eWay Bill. This applies if the goods in transit exceed Rs. 50,000.
  • Even for goods valued at less than Rs. 50,000, a registered person can generate an eWay Bill voluntarily.
  • When an unregistered person supplies goods to someone who is registered, it is the responsibility of the unregistered supplier to generate the eWay Bill. Here, the registered recipient must ensure all necessary compliance, including the generation of the eWay Bill.
  • If the supplier, a registered person, has yet to generate an eWay Bill for the goods in transit, the onus falls on the transporter. The transporter must generate the eWay Bill regardless of the goods’ value.

Note that the consignor can delegate the responsibility of filling out PART-A of the e-way bill to the transporter, courier agency, or e-commerce operator.

Additionally, it’s important to generate an e-way bill regardless of the consignment’s value, even if it is less than Rs.50,000, in the following two scenarios:

  • When a principal sends goods to a job worker in an inter-state transaction.
  • For an inter-state transfer of handicraft goods by a supplier exempt from GST registration.

The requirement for an e-way bill is waived in certain instances, especially when transporting specific goods or under particular conditions:

Goods Exempt from E-Way Bill:

  • Liquefied petroleum gas (LPG) for household and non-domestic exempted category customers.
  • Postal baggage by the Department of Posts.
  • Kerosene oil is distributed under the Public Distribution System.
  • Precious items like natural or cultured pearls, precious metals and stones, and articles from these (Chapter 71).
  • Currency.
  • Used personal and household effects.
  • Coral, both unworked (0508) and worked (9601).

Customs-Related Exemptions:

  • Goods are moved from a customs port, airport, air cargo complex, or land customs station to an inland container depot or freight station for clearance.
  • Transportation using non-motorized conveyances.

Specific Goods Exempt from E-Way Bill:

  • Alcoholic liquor for human consumption.
  • Petroleum crude.
  • High-speed diesel.
  • Motor spirit (petrol).
  • Natural gas.
  • Aviation turbine fuel.

Optional E-Way Bill Generation:

  • In cases where there is no supply as per Schedule III of the Act.
  • Additional Specific Exemptions:
  • Transit cargo to and from Nepal or Bhutan.
  • Goods are exempt from tax under various notifications.
  • Transportation by rail by Central, State Government, or local authority.
  • Transport by defense formations under the Ministry of Defense.
  • Transport of empty cargo containers.
  • Transportation of goods weighing within 20 km from the consignor’s business to the weighbridge, accompanied by a delivery challan.

There is a specific validity period for an e-way bill, which is determined based on the distance the goods are transported. The e-way bill is valid for one day for every 100 kilometers or part thereof for regular vehicles or standard transportation modes.

In the case of Over Dimensional Cargo (ODC) vehicles, the validity is one day for every 20 kilometers or part thereof. It’s important to note that this validity period expires at midnight on the last day.

The e-way bill mechanism functions as follows:

Registration on the Common Portal

  • To comply with e-way bill regulations, individuals must first register on the common GST portal.
  • Generation of the E-Way Bill

After registration, they can generate an e-way bill on this portal.

Allocation of a Unique E-Way Bill Number

  • Upon generating the e-way bill, a unique e-way bill number (EBN) is provided and made available to three key parties via the common portal: the supplier, the recipient, and the transporter.

Filing Part A of Form GST EWB-01

  • Once Part A of the form GST EWB-01 is filled, there’s a feature on the portal that allows the other party (either the supplier, recipient, or transporter, depending on who generates the bill) to view the e-way bill generated against their GSTIN.

Requirement for Acceptance or Rejection

The party at the other end must accept or reject the consignment details specified in the e-way bill.

Deemed Acceptance

Suppose there is no communication of acceptance or rejection within 72 hours from the generation of the e-way bill or the time of delivery of the goods (whichever is earlier). In that case, the details are considered accepted by default.

To generate an e-way bill, the following documents are required, depending on the mode of transport:

For Transport by Road:

  • Invoice/Bill of Supply/Challan related to the goods being transported.
  • Transporter ID or the Vehicle Number of the vehicle used for transportation.

For Transport by Rail, Air, or Ship:

  • Invoice, Challan relevant to the consignment of goods Bill of Supply,.
  • Transporter ID
  • Transport document number and date, which are specific to the mode of transport used (rail, air, or ship).

Various modes are available on the common portal to register for an e-way bill under the e-way bill system. These include:

  • SMS: Registration can be done via SMS.
  • Android Application: An Android app is available for e-way bill registration.
  • Web-Based Mode: This is the primary mode for registration.
  • API-Based: For integration with business systems.
  • GST Suvidha Providers: Utilizing services offered by GST Suvidha Providers.

Users must initially register through the web-based system regardless of the chosen mode.

Generating E-Way Bills is a straightforward process through the Eway Bill (EWB) portal. It offers various functionalities like generating single and consolidated E-Way Bills, updating vehicle numbers on existing Ones, and canceling them.

Issuing via GSTN

The e-way bill can be created on the GSTN portal. This involves entering details about the goods, the consignor, the recipient, and the transporter.

Receipt of E-Way Bill Number (EBN)

Once generated, an e-way bill number (EBN) is provided to the supplier, recipient, and the transporter involved in the movement of goods.

SMS Option for Generating and Canceling E-Way Bills

For suppliers without internet access, e-way bills can also be generated or canceled via SMS. To use this service, the supplier must first register for the SMS facility on the GSTN portal by selecting the ‘For SMS’ option under the ‘Registration’ tab.

The details of the generated e-way bill are accessible on the common GST portal for the recipient.

Note:

The recipient must either accept or reject the e-way bill on the portal. If no action is taken within 72 hours, the e-way bill is automatically considered as ‘accepted’.

The individual responsible is penalized if a consignment is transported without an e-way bill. This penalty is either Rs. 10,000 or an amount equal to the tax evaded on the consignment, whichever is higher.