e-Way bill becomes mandatory from February 1, 2018: GST Council

Transportation of goods across or within the state valued at more than ₹50, 000 will now attract an e-Way bill. The GST Council in a meeting on 16 December 2017 has decided that with effect from February 1, 2018, all goods ferrying within or intra-state would require an e-Way bill. The meeting also the presence of Arun Jaitley, Finance Minister of India, through video conferencing.

The plan to implement e-Way bill was due on April 1, 2018. However, witnessing the urgency of tax evasion in the economy, the Council was forced to make a decision that preponed the implementation of the current reform.

Who will need an e-Way bill?

Businesses who are involved in ferrying of goods will require an e-Way bill. It should be noted that the need for e-Way bills will only arise when the value of goods is either equal to or greater than ₹50, 000. In case the value of ferrying goods is lower than ₹50, 000 then the parties need not obtain an e-Way bill.

How to generate an e-Way bill?

Businesses who need an e-Way bill are required to visit the online GST portal (temporary link: http://164.100.80.180/ewbnat5/) and then enter their GST details and details of ferrying goods. Then the system will generate an e-Way bill which should be retained by the purchaser of goods, seller of goods and the transporting company.

Until the e-Way bill is implemented nationwide, businesses can continue to work with their separate e-Way bill systems. Post April 1, 2018 businesses would be required to follow the complete channel. From January 16, 2018 onward transporters will have the option to start using this bill voluntarily.

On the other hand, the GST Council has offered the states with a liberty to select their own timings with respect to e-Way bill implementation. However, the same shall not be later than June 1, 2018.

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