How GST E-way Bill Compliance Changes with Interstate & Intrastate GST Supply Transactions
The introduction of the Electronic-way bill, or GST E-way bill, in the Indian taxation system, has significantly streamlined the movement of goods within the country. It is a digital document required for the transportation of goods worth over a certain threshold value, aimed at increasing transparency and tax compliance. However, it’s important to note that GST E-way bills apply differently to interstate e-way bill and intrastate e-way bill transactions.
Understanding GST E-way billing
Before getting into the differences, let’s first define GST E-way Billing. A GST E-way billing is a digital document generated on the GST (Goods and Services Tax) portal that must be carried by the goods transporter while transporting the goods from one location to another. It contains the consignor’s and consignee’s company names and addresses, the product description, the value of the goods, and the vehicle details.
The system of GST E-way Bill for interstate is formulated to ensure that goods are transported with proper documentation and tax compliance, reduce tax evasion, and facilitate hassle-free goods movement.
Applicable to interstate movement of goods if the value of the goods exceeds Rs. 50,000 and if the person is registered under GST, they must generate interstate E-way bill to transfer the goods. He cannot transfer the goods without a GST E-way billing.
Features of GST E-way bill
- The user can create records for their suppliers, customers, and products, making it easy to create GST E-way bills.
- Users can monitor GST E-way Bills generated under their account or on their behalf.
- Users can create sub-accounts and roles on the portal to generate GST E-way Bills.
- Notifications will be sent via using their registered email address and mobile number.
- The vehicle number can be provided by either the transporter or the supplier/recipient of goods. Each GST E-way bill will consist of a QR code to access information.
- A consolidated GST E-way bill can be produced for vehicles transporting multiple shipments.
Who needs to generate a GST E-way billing?
Who | Form/Part |
All registered persons under the GST Act | Form GST EWB-01 (Part A) |
Registered person is consignee or consignor and is the recipient of goods | Form GST EWB-01 (Part B) |
The registered person is the consignee or consignor, and the recipient is a transporter of goods | Form GST EWB-01 (Part B) |
Transporter of goods | E-way to be generated based on information provided by the registered person in form GST EWB-01 (Part A) |
The consignor is unregistered, and the recipient is registered | When goods are moved within the same State or Union territory, covering a distance of 50 kilometers (about 31.07 mi) or less from the consignor’s place of business to the transporter’s location for onward transport, it is not mandatory for the supplier or transporter to provide conveyance details in Part B of FORM GST EWB-01. However, if the supply is conducted via air, sea, or rail transport, the consignor or recipient is responsible for completing Part A of FORM GST EWB-01 with the necessary information. |
Understanding the Difference
Point of difference | E-way Bill For Interstate: | E-way Bill For Intrastate: |
Documentation: | GST e-way bill for interstate transactions typically require more extensive documentation, including invoices, transporters’ details, and tax invoices. | For intrastate transactions, the documentation process may be less complex, often involving fewer details compared to interstate transactions. |
Threshold Limits and Exemptions: | Different states may have varying e-way bill limit for inter-state supply and exemptions, making it essential to be aware of the specific rules for each state involved in the transaction. | Intrastate e-way bill transactions usually follow the threshold and exemption limits set by the respective state government, which can differ from state to state. |
Applicability of State-specific Rules | Interstate e-way bill transactions are subject to both the Central and State GST E-way bill rules, which can add complexity due to the dual Compliance requirements. | GST e-way bill for intrastate transactions is primarily governed by the rules and regulations of the respective state. |
Validity of GST E-way bill
Cargo Type | Distance | Validity |
Over Dimensional Cargo | Less than 20 km | 1 day |
Over Dimensional Cargo | For an extra 20 km | +1 day |
Other than Over Dimensional Cargo | Less than 200 km | 1 day |
Other than Over Dimensional Cargo | For an extra 200 km | +1 day |
GST E-way Bill For Intrastate Threshold Limits
Every supplier must understand that each state has a different starting point for complying with GST E-way bill rules. All this data is difficult to gather and keep track of. If your business frequently supplies within or outside of your state, you’ll need software that integrates all of your data, like GSTrobo’s Excel mapping feature. It can help you sort through a sea of transactions and understand the E-way compliance side of things. The states and e-way bill limits for inter-state supply threshold limits are detailed below:
State | GST E-way bill threshold limit |
Andhra Pradesh | INR 50,000 for all taxable goods |
Arunachal Pradesh | INR 50,000 for all taxable goods |
Assam | INR 50,000 for all taxable goods |
Bihar | INR 1,00,000 for all taxable goods |
Chhattisgarh | INR 50,000 for specified goods |
Delhi | INR 1,00,000 for all taxable goods |
Goa | INR 50,000 for specified goods |
Gujarat | No e-way is required for goods except of specified class amounting to any value |
Haryana | INR 50,000 for all taxable goods |
Himachal Pradesh | INR 50,000 for all taxable goods |
Jammu Kashmir | No GST E-way bill is required |
Jharkhand | Above INR 1,00,000 for non-specified goods |
Karnataka | INR 50,000 for all taxable goods |
Kerala | INR 50,000 for all taxable goods |
Madhya Pradesh | INR 50,000 for specified goods |
Maharashtra | INR 1,00,000 for all taxable goods |
Manipur | INR 50,000 for all taxable goods |
Meghalaya | INR 50,000 for all taxable goods |
Mizoram | INR 50,000 for all taxable goods |
Nagaland | INR 50,000 for all taxable goods |
Odisha | INR 50,000 for all taxable goods |
Puducherry | INR 50,000 for all taxable goods |
Punjab | INR 1,00,000 for all taxable goods |
Rajasthan | INR 1,00,000 for goods falling under Chapter 24 Heading 2106 |
Sikkim | INR 50,000 for all taxable goods |
Tamil Nadu | INR 1,00,000 for all taxable goods |
Telangana | INR 50,000 for all taxable goods |
Tripura | INR 50,000 for all taxable goods |
Uttar Pradesh | INR 50,000 for all taxable goods |
Uttarakhand | INR 50,000 for all taxable goods |
West Bengal | INR 1,00,000 for all taxable goods |
When is E-way bill under GST not required?
- When non-motor vehicles are used as a mode of transportation.
- When goods are transferred for customs clearance from Customs ports, airports, air cargo complexes, or land customs stations to Inland Container Depots (ICDs) or Container Freight Stations (CFSs).
- When goods are shipped either with or without customs seals.
- When goods are transported from one ICD to another or from one customs station to another within the context of a Customs Bond.
- When goods are on their way to or from Nepal or Bhutan.
- When a defense formation under the Ministry of Defense transports goods as part of military operations, acting as either the sender or the recipient.
- When moving empty cargo containers.
- When the consignor transports goods between their place of business and a weighbridge for weighment within a 20-kilometer distance, accompanied by a delivery challan.
- When goods are transported by rail, and the consignor is the Central Government, State Governments, or a local authority.
- When specific goods are exempt from E-way bill under GST requirements as per the respective State or Union Territory GST Rules.
- When transporting certain specified goods, including items listed as exempt supplies, those in the Annexure to Rule 138(14), goods considered as not subject to tax as per Schedule III, and certain goods mentioned in Central tax rate notifications (PDF of List of Goods).
Note: In GST PART B, E way – If the distance between the consignor or consignee and the transporter is less than 50 kilometers and the transport takes place within the same state, no bill is required.