EWay Bill – Requirement for Imports and Exports
Foreign commerce is a significant determinant of the nation’s economic growth and development. To foster a healthy economy, imports and exports from the country and the industrial sector must rise significantly yearly. This expansion would result in increased domestic demand and currency strength.
While discussing the movement of products, we also need to consider the commodities moved throughout the importation and exportation processes and the e-way bill requirement.
You require e-way bills for all inter-state movements of items worth more than Rs 50,000 and all intra-state movements, with some exceptions.
Import and Export Under the GST Act
As you know, exports and imports contribute significantly to economic growth by pooling foreign exchange across international borders. According to the GST Act, export involves supplying commodities outside India’s boundaries, and import entails supplying goods within India via international borders.
Furthermore, importing items will be classified as an inter-state supply under the IGST Law, and the government will impose IGST on it. Goods exportation will be a zero-rated supply, and you will pay no tax.
What is the Applicability of the E-way Bills on Import and Export Transactions?
Import is an inter-state transaction, and an e-way bill applies to inter-state transactions. So it would help if you explored the applicability of the same and when you need an e-way bill in each situation:
The following are the stages involved in a typical import and export procedure:
Applicability for Import:
| Applicable for E-way Bills for Import | Not Applicable for E-way Bills for Import |
| Movement of goods from Inland Container Depot(ICD) or Container Freight Station(CFS) to the business place of the importer | Customs entry inward |
| Movement from warehouse to the business place of the importer | Movement of goods from Customs Port or the airport to Inland Container Depot(ICD) or Container Freight Station(CFS) |
| Movement of goods from Inland Container Depot(ICD) or Container Freight Station(CFS) to warehouse |
Applicability for Export:
| Applicable for E-way Bills for Export | Not Applicable for E-way Bills for Export |
| Movement of goods from the business place of the exporter to Inland Container Depot(ICD) or Container Freight Station(CFS) or warehouse | Movement of goods from Inland Container Depot(ICD) or Container Freight Station(CFS) to Customs Port or the airport or warehouse |
| Movement of goods from Customs Station or Port to another Customs Station or Port |
E-way Bill Generation for Exports and Imports
The steps to generate the e-way bill for import and export remain the same. The following are the key points you have to note while generating an e-way bill for imports and exports:
| Particulars in e-way bill | Import | Export |
| Transaction sub-type to select | Import | Export |
| Document type and number | Bill of entry | Tax invoice meant for export of goods |
| Bill From | Unregistered Person (URP) | Exporter’s details (name, GSTIN etc.) |
| Dispatch From | You must enter Pin code 999999 in the state column, ‘other countries to be selected. | Address exporter’s place of business/ warehouse |
| Bill to | Importer details (name, GSTIN etc.) | A person outside India who may be unregistered (mention URP) |
| Ship to | Address of importer’s place of business/ warehouse | You have to enter Pin code 999999, and in the state column ‘other countries to be selected |
| Transportation details | Details of the transporter (vehicle details, transporter ID etc.) | Details of the transporter (vehicle details, transporter ID etc.) |
While developing a GST e-way bill is required to import and export products, it is critical that the e-way bill generated is genuine. Since the distance travelled by items determines the legitimacy of an e-way bill.
For imports, the distance you choose between the ICD/CFS and the factory/business importer’s location, whereas for exports, estimate the distance between the warehouse/business exporter’s location and the ICD/CFS. Therefore, when generating the import and export e-way bills, ensure that the distance travelled is estimated precisely.
Calculate the validity of the e-way bill based on the distance to be travelled. So when you have import and export cases, you must know from what point you need to start calculating the distance to see the validity.
- For import- generate the e-way bill for imports once you get goods clearance for home consumption. Calculate the distance from the ICD to the place of business of the importer. The validity of the e-way bill is determined accordingly.
- For export- generate the e-way bill for export when you move goods to the port for exportation. For e-way bill validity purposes, calculate the distance from the warehouse/ place of business to the port.
Is an E-way Bill Required for High Sea Sales?
You do not need to generate an e-way bill during a high sea sale because the sale takes place outside of India’s borders. Hence, the government is attempting to minimise the compliance burden on foreign trade businessmen. Suppose importers and exporters guarantee that other documents are in place and the e-way bill is genuine. In that case, e-way bills will undoubtedly simplify the process.