What is it?
- Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.
- E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track the movement of goods and check tax evasion.
- An e-way bill is required for inter-State movement of goods worth over ₹50,000. For intra-State movement, the limits vary from State to State.
- Since imports and exports have been considered as inter-state supplies under the GST act, the e-way bill is required to be issued for these transactions as well. For imports, the e-way bill will be generated by the importer. The exporter is liable to generate the e-way bill for export supplies.
- Exceptions to e-way bill requirement
- goods being transported by a non-motorised conveyance;
- goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
- Contraceptives, judicial and non-judicial stamp paper, newspapers, khadi, raw silk, Indian flag, human hair, kajal, earthen pots, cheques, municipal waste, puja samagri, LPG, kerosene, etc. are also outside the ambit of the e-way bill.
Why in News?
- According to the latest Goods and Services Tax Network (GSTN) data, more than 4.87 crore e-way bills, valued at over ₹13.85 lakh crore, were generated by businesses and transporters in August, reflecting a pick up in economic activity.
- Goods and Services Tax Network is a nonprofit non-government company, which provides IT infrastructure and services to the Central and State Governments, taxpayers and other stakeholders for implementation of the Goods and Services Tax (GST) in India.
- It acts as the interface between the government and the taxpayers and helps taxpayers in India to prepare, file returns, make payments of indirect tax liabilities and do other compliances.
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