When the government switched to the goods and services tax regime, it also changed the way it tracks goods. If your company ships high-value shipments, the GST’s E-way bill system can add an extra logistical burden — especially if you use transporters who aren’t GST-registered. Getting familiar with the transporter ID can help you stay GST-compliant and create a smoother shipping process.
Understanding the E-Way Bill
Before your company ships merchandise that’s worth more than ₹50,000, the GST law requires you to apply for an E-way bill. This document contains a variety of information, including product details, the route the shipment will take, the place of supply, and the names and addresses for both your company and the recipient. As your shipment travels the route, the transporter must carry the E-way bill or the E-way bill number — that way, if the transporter is stopped, they can prove they are carrying products legally.
What Is a Transporter ID?
When you apply for an E-way bill, you need to fill in the GSTIN of the company you’re using to ship the products. However, some transporters are not registered with GST. This often happens if their annual revenue is too low to require GST, or if their usual shipments are worth less than ₹50,000. Because the government still needs a way to identify the shipping vehicle and company, they came up with the transporter ID. This 15-digit number can be used in place of a GSTIN on the E-way bill. It’s a great way to get the benefits of working with unregistered transporters and still be GST-compliant.
Changing Vehicle Details With the Transporter ID
The E-way bill requires you to enter the details of the vehicle that will be carrying your products. You don’t need to provide this when you apply, but you must make sure the information is present and correct before the shipment leaves. That’s where the transporter ID comes in handy — it allows your transporter to log in and change the vehicle details in the E-way bill. That way, you can avoid confusion, and the transporter can make last-minute changes in case the original vehicle breaks down or gets stuck on another shipment.
What Are the Benefits of the ID for Transporters?
If you run a transporting business and you’re not registered under GST, it’s helpful to get your transporter ID before you need it. That way, when a registered company hires you for a shipment, you can provide the number immediately for the E-way bill.
Do you ever transport goods between people who are not registered with GST? The ID can be a big help in this situation. After all, when neither the sender nor the recipient is registered, the transporter is required to generate the E-way bill. If you have your ID ready, you can plan the shipment with less wait time.
How To Get a Transporter ID
The transporting company must apply for the ID online using the government’s E-way bill portal. The application is simple, and requires the transporter to enter basic information about their business, including their name, address, and PAN. In addition, they must upload proof of their ID and address. Once the system approves the application, it sends the ID number via email. This number is good for all future shipments, as long as the transporter is unregistered under GST.
Shipping is slightly more complicated under the GST regime, but it doesn’t need to deter you from working with unregistered transporters. By making sure your favourite shipping companies have transporter IDs, you can take the hassle out of the E-way bill process and get your products on the road quickly.