Requirement of e-way bill for movement of goods from one state to another state

Dear Readers,

Earlier issuance of the e-way bill was started on a trial basis in two-three states. Now we understand that it will be mandatory from 1^st of Feb 2018 on all goods under interstate movement except 154 items as notified in Rule 138 (14).  Important information is given below:-

1. E-way bill will be required for movement of goods through all motorized modes.
2. At present e-way bill required for movement of goods from one state to another w. e. f. 01/02/2018
3. E-way bill is required for movement of goods within the state from 01/06/2018. 
4. E-way bill will be required for the consignment having value more than Rs 50,000/-
5. It is optional for issuance of e-way bill for the consignment less than Rs 50,000/-
6. As the system for preparation of e-way bill will be applicable in all the states and hence all supplier or transporter can issue e-way bill as per requirement of law.
7. Every supplier or transporter can prepare their user ID and also they can further generate sub-user ID according to their requirement/work structure. For example, we have generated one user ID at "ABC Works" related to our GSTIN no. and further, we have provided sub-user ID to our Stores, to our Purchase Department, Marketing Department, Taxation Department and it will further be extended according to requirement.
8. E-way will be generated and control under website  http://ewaybill.nic.in
9. Transporter register under GSTIN will be required to generate their USER-ID based on their GSTIN no.
10. Transporters who is not registered under GSTIN who may generate their USER-ID based on their PAN No.
11. If we purchase any material from an unregistered person in that case recipient of the material will generate the e-way bill based on the scan copy of bill received from the dealer along with required information related to transportation of goods.
12. E-way bill will also be required for the material sent for repair /job work under interstate movement irrespective of any amount.
13. Any transporter transferring goods from one conveyance to another during transit, before such transfer or further movement of goods update the detail of new conveyance in the e-way bill on the common portal form GST EWB-01.
14. After e-way bill has been generated in accordance with the provisions of sub-rule(1) of rule 138, where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him in the said common portal prior to movement of goods.
15. Where the consigner or the consignee has not generated FORM GSTEWB-01(e-way bill)  in accordance with the provision of sub-rule(1) and the value of goods carried in the conveyance is more than Rs 50,000/- , the transporter shall generate FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.
16. The details of e-way bill generated under sub-rule(1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.
17. Where the recipient referred sub-rule (11) does not communicate his acceptance or rejection within 72 hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said detail.
18. Allocation of time for delivery of the material – one day has been allotted for a distance of 100 Kms and it will be multiple for 100 kilometers for additional time.
19. Document to be carried by person-in-charge of a conveyance.      -Invoice or bill of supply or delivery challan, -Copy of e-way bill or e-way bill number.
20. If any consignor or consignee is carrying the goods through their own truck in that the case also e-way bill be required.
21. Important information/documents required for the process of an e-way bill:

• Relevant information is available in the tax invoice is required for issuance of e- waybill
• Every transporter is required to generate their ID on the portal and share their ID for  issuance of e-way bill along with the following information 
• Transporter document no. i.e. LR/bilty no.
• LR/Bilty  Date
• Vehicle registration no.
• Distance in kilometer starting from the place of supply to the place of delivery.
• On the basis of distance, system will automatically calculate the time by which material will be delivered by the transporter
• It has been provided that due to any reason if transporter will not able to deliver the material within the time period mentioned in the e-way bill, the transporter can generate another e-way bill after updating the details in part B of form GSTEWAYBILL 01.
• Pin code of the address of the supplier as well as pin code of recipient will be required to be updated in the tax invoice.
• e-way bill is not valid for movement of goods without vehicle number
• e-way bill is not editable for any kind of updation of wrong information in the e-way bill.
• If we find any mistake it can be canceled within 24 hrs from the time of its issuance. e-way bill will not be able to cancel if it has been verified in transit by the officer assigned by the commissioner.
• Facility to generate the e-way bill from different registered business places by creating multiple sub-users and assigned to these places and generate the e-way bills accordingly.
• In the case at the time of issuance of e-way bill truck number is not available, a supplier can use ID of the transporter and issue e-way bill. Transporter can update vehicle number in the same e-way bill after loading of the material but before starting the movement of the material. 

22. Procedure to generate an e-way bill.

STEP 1:- at present  the portal of e-way bill  -Login to http://ewaybill.nic.in but  from 01/02/2018 it may changewww.ewaybillgst.gov.in

SL PART-A	Detail required	Steps	Source of information
1	Transaction detail -Inward -Outward	Subtype -supply -export -job work -skd/ckd -own use -Exhibition or fairs -line sales -Others	Tax invoice	mandatory
2	Document Type *	Invoice Bill Bill of entry Challan Credit note Others	Tax Invoice	mandatory
3	Document no*	Tax invoice number	Tax Invoice	mandatory
4	Document Date *	Date of tax invoice	Tax Invoice	mandatory
5	Suppliers Detail (From)	Name of supplier GSTIN No* of supplier Address of supplier Place Pin Code* State	Tax Invoice	mandatory
6	Recipient ( To)	Name of Recipient GSTIN No* of recipient Address of recipient Place Pin Code* State	Tax Invoice	mandatory
7	Item Detail	Product Name Description HSN * Quantity Unit Value/Taxable Value* Tax Rate (C+S+I+Cess)*	Tax Invoice	mandatory
		System automatic calculate Taxable value CGST Amount SGST Amount IGST Amount Cess Amount
PART –B	Transporter Detail *	Mode* Road Rail Air Ship	Tax invoice	mandatory
2	Approximate Distance*	(in KMS)	Freight master Distance can be printed on DI	mandatory
3	Transporter Name	To be filled by the supplier if transporter name is available.	Tax invoice/ bilty/ DI	optional
4	Transporter ID *	Every transporter need to enroll on the e-way bill portal and generate the 15 digit Unique Transporter ID based on their GSTN No (for registered transporter/pan number (for unregistered transporter)	In case of registered transporter their GSTIN will be updated . and in case of unregistered transporter they will share their Registration no  (15 digit) in their LR/Bilty and same will be updated.
5	Transporter Document no. and date	Road – LR/ BILTY Rail  -  RR No.		Optional
6	Vehicle No.	Road – Rail – not required	Tax invoice	mandatory

23.  Notwithstanding anything contained in this rule, no e-way bill is required to be generated –

• Where the goods being transported are specified in Annexure;
• Where the goods are being transported by a non-motorized conveyance;
• Where the goods are 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;
• in respect of the movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Service Tax Rules of the concerned State.

24. Further state wise user ID can be generated for preparation of an e-way bill for the transaction effected from various depot/ plants. 

Above explanation is based on rule 138 of GST rule as well as the system for preparation of e-way bill in the Government portal. 

Supply Chain & P2P

Supply Chain - starts from Supplier end and ends at Customer end. It's an entire network of entities directly or indirectly involves in serving the end customer or consumers. Supply chain activities involve the procurement of raw materials, converting that raw material into the product and providing that product to the end customer.

There are various types of activities  / functions like Procurement / Operation/ Marketing / Logistics / Accounts plays it's role as per chain requirements. Commercial activities of whole Supply chain is being divided into two types of Cycle - 

P2P Cycle - Procurement to Pay Cycle: It involves all the activities of identifying the requirement of goods/services, procurement of the goods/ services, getting delivered the goods as desired and releasing the payment. 

O2C Cycle - Order to Cash Cycle: It involves all the activities of finding the prospective customer and providing the product from manufacture end to customer end.

Further, Money always flows from customer end to supplier end in supply chain & material flows from supplier end to customer end. 

People use the terms purchasing and procurement interchangeably, but despite their similarities, they do have different meanings. Both the terms mean to acquire something against money. However, there is some difference between them, specifically regarding the contexts in which they may be used. 

• Purchasing - The process of obtaining goods and services.
• Procurement - the combined functions of identifying needs, initiating a procurement project, selecting a vendor, contracting with a vendor, purchasing of the goods or services, managing the resulting contract.

The process of purchasing good and services is known as the ”Procure-To-Pay Cycle”

Steps involve in procurement to pay cycle - 

P2P Step 1 - Identifying the requirements

P2P Step 2,3 - Source Determination & Vendor Selection

P2P Step 4,5 - PO Processing & Order Monitoring

P2P Step 6 - Goods Receipt

P2P Step 7 - Invoice Verification

P2P Step 8 - Payment

Industrial Materials are further classified into two types - Direct Material & Indirect Materials. 

Indirect Material are those materials which are not directly being used to produce finished goods but required to get operate the plant and related services. Those items usually called MRO (Maintenance, Repair & operations) items. 

Direct Material are those materials which are directly being used to produce finished goods or we can also say that directly proportional to a unit of production. Those items usually called raw materials and process of procurement varies from industry to industry. 

Indirect Material P2P process are fairly similar across the industry. Whether you are in Cement, Steel, Chemical, aerospace, or any other industry, there tend to be many similarities in how you buy office supplies, computer systems, maintenance / upgradaion items, services/ AMC's, etc. 

Organizations buy many different goods and services as shown in below image. The challenge for purchasing is deciding on the supplier that offers the best opportunity for items an organization must purchase externally.