E-way bill system

Why in news?

• 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

What is an e-way bill?

• The E-way bill is a document to be generated online under the GST system, when goods of the value of more than ?50,000 and distance of more than 10km are shipped inter-State.
• For intra-State movement, the limits vary from State to State
• The E-way bill must be raised before the goods are shipped.
• It should include details of the goods, their consignor, recipient and transporter.
• Once generated E-way Bill can be cancelled only if there are Errors or mistakes in furnished details due to human intervention; and/or on  Non-movement of the consignment.
• The information technology platform for the e-way bill system is being developed by the NIC along with GST-Network.

Cases when e-way bill is not required

• The mode of transport is non-motor vehicle.
• Goods being transported by rail where the consignor of goods is the Government.
• Empty cargo containers are being transported.

Who should generate an e-way bill?

• A GST Registered Person:
  • E way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person.
• Unregistered Persons:
  • Unregistered persons are also required to generate e-Way Bill.
  • However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
• Transporter :
  • Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

PRELIMS QUESTION

Consider the following statements about the recently introduced E-Way Bill:
1.It is mandatory for all inter-State movement of goods.
2.The implementation of the nationwide e-Way Bill mechanism is being done by GSTN. 
3.The bill once generated cannot be cancelled at any point of time.
Which of the above statements is/are correct?
(a)1 and 2 only
(b)2 only
(c)3 only
(d)1,2 and 3

Answer to prelims question