The E-WayBill system now requires businesses to include 6-digit HSN codes. Before we move further, let's familiarise ourselves with what E-waybill se.

E-wayBill is an electronic document for goods worth rs. 50,000+ that are being moved from one place to another. These documents are created by GST businesses, with an E-WayBill number, also called EBN, which is shared with the supplier, recipient, and transporter.

Update on E-WayBill-

As per a new update on 1st February 2024, now the e-waybill system requires businesses to share the 6-digit HSN code.

It is necessary to provide at least a 6-digit HSN code for all the B2B and Export transactions by the taxpayers whose Annual Aggregate Turnover is more than Rs. 5 Crores. And if you have AATO less than Rs. 5 Crores, then you must provide at least a 4-digit HSN code.

This validation has been implemented in the e-way bill system from 1st February 2024. Hence, you, the taxpayers are advised to make necessary changes in their systems and enter 4 / 6 digit HSN codes as per their AATO when they generate your e-way bills via web and API systems from 1st February 2024.

This new rule on e-waybills is being implemented so that the government, can easily track the movement of goods accurately and prevent tax evasion if any.

4 important things to know about E-WayBill

To understand more about this update on e-waybill, who can do it, how can you generate an e-waybill, which form to fill, which part of the form to fill,

Person(s) who can generate e-waybill

When can you generate an e-waybill

E-waybill Form Part

Form

GST Registered person

Before movement of goods

Part A

GST EWB-01

GST Registered person who is consignor or consignee (mode of transport may be owned or hired) OR is the reciever of goods

Before movement of goods

Part B

GST EWB-01

GST Registered person is consignor or consignee and goods are handed over to transporter of goods

Before movement of goods

Part B

Part B of FORM GST EWB-01 (The GST registered person shall present the information related to the transporter in Part B of FORM GST EWB-01)

Transporter of goods

Before movement of goods

Part A

Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01

An unregistered person under GST but the reciever of the goods is a GST registered person

To be done by Supplier if her is the recipient.

Part B

Part B of FORM GST EWB-01 (If the goods are transported for a distance of 50 kms or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.)




Part A of FORM GST EWB-01. (If supply is made by air, ship or railway mode, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the reciever.

When you do not need an e-wayBill?

There are several situations where an E-Way Bill is not required, even for GST-registered businesses:

Transportation by non-motorized vehicles: If you're transporting goods by hand, bicycle, bullock cart, etc., you don't need an E-Way Bill.

Specific goods: Certain goods are exempt from E-Way Bill requirements, such as liquefied petroleum gas for household use, kerosene oil under Public Distribution System (PDS), postal baggage, precious metals and stones, used personal effects, and unworked coral.

Short-distance movement: Within the same state, an E-Way Bill isn't required for goods transported up to 50 kilometers:

-Between the consignor (sender) and the transporter (carrier)
-Between the transporter and the consignee (receiver)
-Weighbridge movement: Up to 20 kilometers within the same state, an E-Way Bill isn't needed for transporting goods to a weighbridge and back, provided a delivery challan accompanies the movement.

Government and defense:  aren't required when the government or local authorities transport goods by rail, or when the Ministry of Defense is involved as the consignor or consignee.

Customs and bonded goods: E-Way Bills aren't needed for goods transported:
-From customs port/airport to an Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance
-From ICD/CFS to a customs port/airport under customs bond
-Under customs supervision or seal

Remember, these are just some general scenarios. It's always best to consult the official e way bill system or a tax professional for the latest and most accurate information specific to your situation.

Conclusion: Your Updated E-wayBill

The new ewaybill update mandating the reporting of four or six-digit HSN codes signifies the government's ongoing efforts to streamline the GST system and enhance transparency.
By adapting to these changes, businesses can ensure they operate within compliance and contribute to a more efficient tax administration.

Tap to know how ▶ GimBooks App can help you easily and more quickly in managing your business with e way bill login in mobile.

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Process digitisation is no longer restricted to private businesses. For theindustry, the government is also progressively automating its operations. TheE-way bill is one example of the government’s efforts to assist businesses withtransportation. You must be wondering how and what an E-waybill is…
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