Managing a seamless movement of goods for your enterprise while also ensuring compliance regulations can be challenging for your teams. As a finance leader, you might see your teams face numerous hurdles, including paperwork delays and confusion about transportation rules. This is where the e-way Bill system under GST streamlines the movement of goods under India's GST framework. It ensures every consignment is properly documented, making the entire process transparent and hassle-free. But what exactly is an E-way Bill, and how does it work?
EWay Bill or an Electronic Way bill is required for movement of goods under GST. Transporters should carry an eWay Bill when moving goods from one place to another, valid across India if value of consignment exceeds a specified limit.
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17th September 2024
The e-way bill generation has met an all-time high to reach 10.54 crore in August 2024 as per GSTN's data from GSTN showed. An improved compliance coupled with strict action by field formation must have propelled growth in the e-way bill count.
Under GST, an Electronic Way bill is required for movement of goods. A registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.
Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of the GST search tool before using it. When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.
E-Way bill is divided into two components i.e. Part A and Part B. The person required to issue eway bill should fill in the following details of Part A:
While as far as Part B is concerned, it comprises of the transporter details (for eg: Vehicle number)
eWay bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000 (either each Invoice or in aggregate of all invoices in a vehicle/conveyance) –
For this purpose, a supply may be either of the following:
Therefore, eWay Bills must be generated on the common portal for all these types of movements. For certain specified Goods, the eway bill needs to be generated mandatorily even if the value of the consignment of Goods is less than Rs. 50,000:
*Generate e-way bill irrespective of the value of consignment.
**Document means Tax Invoice/Delivery challan/Bill of supply
Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated.
Who | When | Part | Form |
Every Registered person under GST | Before movement of goods | Fill Part A | Form GST EWB-01 |
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods | Before movement of goods | Fill Part B | Form GST EWB-01 |
Registered person is consignor or consignee and goods are handed over to transporter of goods | Before movement of goods | Fill Part B | The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 |
Transporter of goods | Before movement of goods | -- | Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01 |
An unregistered person under GST and recipient is registered | Compliance to be done by Recipient as if he is the Supplier. | -- | 1. If the goods are transported for a distance of fifty kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. 2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient |
Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not created an e-way bill, then the transporter can do so by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.
In the following cases it is not necessary to generate e-Way Bill:
Note: Part B of e-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.
Inter-State movement of goods has seen rise in numbers of generation of eway bills ever since its implementation began from 1st April 2018. State-wise e-way bill rules has differed and changed from time-to-time. Many States and Union Territories also joined the league in the generation of eway bills for movement of goods within the State/UT.
However, reliefs have been provided to people of few States by way of exempting them from eway bill generation in case of monetary limits falling below threshold amount or certain specified items. For Instance, Tamil Nadu has exempted people of its State from the generation of eway bill if the monetary limit of the items falls below Rs. One Lakh. To know more of such reliefs for other States/UTs, visit our page on state-wise e-way bill rules and threshold limits or alternatively check the respective commercial tax websites for each of such States/UTs.
E-Way Bill and the e-way bill number can be generated on the e-Way Bill Portal. All you need is a Portal login. For a detailed step-by-step guide on e-Way Bill Generation check out our article – Guide to generate e-Way Bill online.
You can generate e-way bills via SMS using registered mobile phone. All can begin by enabling SMS e-way bill generate facility. Register the mobile phone to be used for SMS facility of e-way bill generation. Thereafter, send simple SMS codes to a particular mobile number managed by the e-way bill portal/GSTN to generate, manage and cancel e-way bills. For more details, read our article on SMS mode of e-way bill generation
An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-
Type of conveyance | Distance | Validity of EWB |
Other than Over dimensional cargo | Less Than 200 Kms | 1 Day |
For every additional 200 Kms or part thereof | additional 1 Day | |
For Over dimensional cargo | Less Than 20 Kms | 1 Day |
For every additional 20 Kms or part thereof | additional 1 Day |
Validity of Eway bill can also be extended by the generator of such Eway bill either eight hours before expiry or within eight hours after its expiry.
Note: While in movement, a vehicle can be blocked by the proper officer for the verification of documents including the E-way bill or inspection of goods.