IS GST E Way Bill Mandatory For Even 1 KM of Distance?
Eastern Eye Staff
What is an E-Way Bill?
E-Way bill or electronic way bill is introduced by the government for the transportation of any goods worth Rs. 50,000 or more. It’s mandatory to generate an E-Way bill when transporting goods and services in the country which is for more than Rs. 50,000. The bill has reduced the burden of carrying too many documents with them. This process has made the whole experience of transportation a seamless experience.
The E Way bill has facilitated the smooth functioning of the goods and supplies transportation. From 1st April 2018, the E-Way bill was made mandatory by the government all across the nation. The GST E-Way bill was introduced in 4 different phases. It was introduced to reduce technical glitches.
Here is more about the distance covered in the GST E-Way Bill:
Notification – 12/2018, date 07-03-2018, defines supply under GST preface 3 situations, according to GST E-Way 138:
Interstate Supply– If the cost of the goods sums up to Rs. 50,000 and above and is interstate, GST E-Way bill is mandatory.
Supply for Further Transportation – If the transportation and the transportation office is shorter than 50km and it is intrastate then the GST E Way Bill is mandatory but only Part A of the bill is to be filled.
Supply to Consignee– Even though the distance of the transportation is within 1 km and transported through a motorized vehicle, If transportation is intrastate and the cost of the goods and supplies exceeds Rs. 50,000, it is mandatory to generate GST E Way Bill.
In the Following Manner New Amendments of the Bill Came into Effect in January 2021:
According to the new changes, unlike earlier, the E-Way bill is now mandatory for the transport of goods and supplies and will be valid for 1 day for up to 200 km of travel. Earlier it was only 100 km of travel.
The one-day validity of the E-Way bill is applicable for up to 20 km of travel, in the case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship.
In case other than Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship the validity period is for up to 200 km in one day.
In the case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship, If the validity period is one day up to 20 km
The Bottom Line:
GST Eway bill is a document that needs to be shown when transporting goods and services worth Rs. 50,000 or more. The E-Way bill has made the whole experience of transportation much easier and simple. You don’t need too many documents to show and remove the number of checkpoints on the way of transportation. Earlier due to checkpoints there used to be delays in the transportation of goods and services. But due to the E- Way bills this problem has been brought down. This is the reason why the E-Way bill is beneficial to the transporter across the nation. For more check out Finserv MARKETS.