Table of Contents
What is E-Way Bill Under GST?
The e-way bill is a document required for transporting goods within India. The driver of any vehicle carrying a consignment of goods valued at more than fifty thousand rupees is required to carry this document, according to Section 68 of the GST Act.
It applies to intra-state (within a state) and inter-state (between different states) movements. The e-way bill system is integral to the goods and services tax (GST) framework.
According to the provisions, a person registered under GST cannot transport goods valued over ₹50,000 in a vehicle without generating an e-way bill on the official website. This value pertains to a single invoice, bill, or delivery challan. You can create this document through the e-way bill portal, SMS, a dedicated app that facilitates e-way bill generation, or site-to-site integration through API (application programming interface).
When an e-way bill is created, a unique identifier called the e-way bill number (EBN) is assigned. This number is accessible to the supplier, recipient, and transporter involved in the movement of goods.
However, before utilising an e-way bill, it is advisable to validate the GSTIN using the GST search by PAN number tool. An accurate GSTIN not only calculates GST accurately but also helps prevent errors during transportation and compliance processes.
When Is an E-Way Bill Required?
According to the e-way bill regulations, an e-way bill is required if you are transporting goods worth fifty thousand rupees or more. An e-way bill must be generated before the dispatch of goods. This ensures that the necessary documentation is in place before the movement begins.
This document should include the following:
- Details of the consignor (sender) and receiver
- Information about the transporter
- Invoice number, date, and value of goods
- HSN (harmonised system of nomenclature) code for the goods.
- Transport document number (goods receipt number, railway receipt number, airway bill number, or bill of lading number)
- Reasons for transportation (e.g., supply, return, etc.)
Here are some more insights into e-way bill GST generation:
1. Inter-State Transactions
For the movement of goods between different states, the bill generation should be before the commencement of the movement to ensure compliance with regulations and facilitate smooth transportation.
2. Intra-State Transactions
The rules vary within the same state. In many cases, bill generation must be done before the start of the movement. However, exceptions exist (e.g., for transportation within 10 km for further transit).
It is worth mentioning that issuing the e-way bill before the movement commences, helps avoid delays at checkpoints and wards off penalties for non-compliance.
What Are the Features and Benefits of an E-Way Bill?
The key features of the GST e-way bill are as follows:
1. Reduced Paperwork and Hassle
The e-way bills eliminate the need for physical documentation like permits or transit passes. Since everything is done electronically, the process saves time and resources.
2. Faster Movement of Goods
With e-way bills, check posts are less frequent. This leads to quicker delivery of goods across state borders and within states. It improves logistics efficiency, resulting in a streamlined process.
3. Curbs Tax Evasion
Since this bill requires details like supplier and recipient GSTINs, the transparency in GST verification online makes it difficult to evade taxes, ensuring a fairer system.
4. Improved Compliance
The e-way bill online simplifies compliance with GST regulations for businesses by streamlining record-keeping and reducing the risk of errors.
5. Enhanced Transparency
The GST e-way bills provide real-time tracking of goods. Authorities can monitor movement and identify potential issues promptly.
Who Should Generate an E-Way Bill?
Either the consignor or the consignee, provided they are registered individuals or a transporter responsible for handling the goods, can generate the e-way bill. Additionally, even unregistered transporters have the option to enrol on the common portal and generate the eWay bill for the movement of goods on behalf of their clients
Here are the relevant people who need to generate the e-way bill:
1. Registered Person
An e-way bill should be issued for the movement of goods valued at over ₹50,000 to or from a registered entity. Additionally, the registered person and the transporter can generate and carry an e-way bill, even if the value of the goods is below ₹50,000.
2. Unregistered Persons
An e-way bill must be generated when an unregistered person supplies goods to a GST-registered individual. In such cases, the recipient must ensure that all regulatory requirements are fulfilled as if they were the supplier.
3. Transporter
Transporters who carry goods through different modes of transportation must generate e-way bills in instances where the supplier has not. They also have the option, upon receiving authorisation from the consignor, to complete PART-A of the e-way bill on behalf of the consignor.
4. Special Cases:
Here are the specific scenarios where e-way bills must be generated, regardless of the consignment value:
4.1 Principal supplying goods to a job worker in an inter-state transaction
When a principal supplies goods to a job worker located in another state for further processing, the principal is required to generate an e-way bill, irrespective of the value of the consignment.
4.2 Inter-state transfer of handicraft goods by a GST-exempt supplier
When such goods are transported from one state to another, irrespective of the consignment value, an e-way bill must be generated.
Here are some more insights into it:
Who |
Part |
Form |
When |
| GST-registered person | Fill Part A | Form GST EWB-01 | Before goods movement |
| A registered person, whether acting as the consignor or consignee (regardless of whether the mode of transport is owned or hired), or as the recipient of goods | Fill Part B | Form GST EWB-01 | Before goods movement |
| When a registered person acts as the consignor or consignee and hands over the goods to a transporter | Fill Part B | The registered individual is required to provide details regarding the transporter in Part B of FORM GST EWB-01. | Before goods movement |
| Goods transporter | The e-way bill is generated based on the information provided by the registered person in Part A of FORM GST EWB-01. | Before goods movement | |
| If the supplier is unregistered under GST but the recipient is registered, | The recipient must ensure compliance as if they were the supplier. | 1) If goods are transported over fifty kilometres or less distance, within the same state/union territory from the consignor’s business premises to the transporter’s premises for onward transportation, the supplier or transporter is not required to provide conveyance details in Part B of FORM GST EWB-01.
2) In the case of supply via air, ship or railways, the consignor or recipient must complete Part A of FORM GST EWB-01 with relevant information. |
Documents Required to Generate E-Way Bill
For GST e-way bill registration, you will need the following:
- Invoice/challan/bill of supply related to goods consignment
- Road Transportation: vehicle number or transporter ID
- Transport by air, rail, or ship: transport document number, transporter ID, and document date
How to Generate the E-way Bill?
Individuals/entities meeting SEZ e-way bill GST applicability need to follow the steps below for bill generation.
STEP 1: Use your GSTIN credentials to access the e-way bill portal.
STEP 2: Within the e-way bill section, click “Generate New.”
STEP 3: Choose the appropriate transaction type. Select ‘Outward’ if you are supplying goods. Choose ‘Inward’ if you are receiving goods.
STEP 4: Choose the relevant subtype and enter document details, like invoice number and date.
STEP 5: Input the GSTIN of both the supplier and the recipient.
STEP 6: Provide information about the goods, such as HSN code, description, and quantity.
STEP 7: If applicable, fill in details related to transport, such as vehicle number and distance.
STEP 8: After providing all the necessary information, submit the form. The system will generate the e-way bill with a unique EWB number.
How Can I Track the Status of an E-Way Bill?
Here are the steps involved in e-way bill tracking.
- Log in to the e-way bill portal using your credentials.
- If you are not a registered user, register on the portal.
- After logging in, choose “E-Way Bill” or “Search E-Way Bill.”
- Enter your e-way bill number for the specific transaction you want to track.
- Submit the request to retrieve the current status of your e-way bill.
E-Way Bill Validity
Understanding the validity of an e-way bill is crucial for the smooth transportation of goods. Whether you are a business owner, transporter, or tax professional, knowing the rules of e-way bill validity ensures compliance with GST regulations.
Since validity depends on the distance of the goods to be transported and the type of conveyance, here are more details about the validity period.
Conveyance Type |
GST E-Way Bill Validity Distance |
EWB Validity |
| Other than over-dimensional cargo | < 200 Km
|
1 day |
| For an additional 200 Km or part thereof | Additional 1 day | |
| For over-dimensional cargo | < 20 Km | 1 day |
| For an additional 20 Km or part thereof | Additional 1 day |
Remember that e-Way Bills expire at 11:59:59 on the validity date mentioned. To avoid disruptions, extend the e-way bill promptly either eight hours before expiry or within eight hours after its expiry. If not extended within the specified timeframe, consequences may include delays, penalties, and compliance issues.
Cases When E-Way Bill Is Not Required or Exempted
Understanding some of the cases where an E-way bill is not required, aids businesses in streamlining their operations without unnecessary burdens:
1. Non-Motor Vehicle Transport
When goods are transported using non-motorised conveyances (e.g., bullock carts, hand-pulled carts, etc.), an e-way bill is not mandatory. Since these modes of transport do not involve motor vehicles, the requirement for an e-way bill is waived.
2. Specific Goods Exemptions
There are many GST e-way bill-exempted goods. These exemptions vary based on state/union territory GST rules.
Examples of exempted goods include:
- Live Animals: Asses, Mules, Hinnies, Bovine Animals, Swine, Sheep, Goats, Poultry, and other live animals.
- Meat and Edible Offal: Fresh, chilled, or frozen meat of various animals.
- Fish seeds and live fish, including prawn and shrimp seeds
- Liquefied Petroleum Gas (LPG): For supply to household and non-domestic exempted category customers.
- Postal Baggage: Transported by the postal department
- Kerosene Oil: Marketed under the public distribution system.
3. Customs-Related Movements
An e-way bill is not required when goods are moved under customs supervision or between customs ports. Customs procedures have their documentation requirements, and the e-way bill is not applicable in such cases.
4. Defence Formations
Goods transported by defence formations (e.g., military units) are exempt from generating e-way bills as they have specific protocols.
5. Intra-State Distance Exemption
If the transportation distance within the same state is less than 50 km, Part B of the e-way bill is not required. Businesses can skip filling in Part B, which contains vehicle details, for short-distance movements.
Additional Considerations:
1. State-Specific Rules
Exemptions may vary based on individual state or union territory GST rules. Businesses should refer to these rules for precise details.
2. Part B Exemption Conditions
While Part B may be exempt for short distances, businesses must still comply with other e-way bill requirements (Part A, invoice details, etc.).
E-Way Bill Rules and Limits for State Wise
The rules and limits for e-way bills for different states are described below.
State |
Threshold Limit |
Description |
| Assam | ₹50,000 | For all taxable goods |
| Bihar | Over ₹1,00,000 | For taxable and non-taxable goods |
| Chattisgarh | ₹50,000 | For a few specific goods |
| Delhi | ₹1,00,000 | For taxable and non-taxable goods |
| Goa | ₹50,000 | For 22 specific goods |
| Gujarat | No bill | For goods other than a specified class of goods amounting to any value for job-work |
| Haryana | ₹50,000 | For all taxable goods |
| Himachal Pradesh | ₹50,000 | For all taxable goods |
| Jharkhand | Over ₹1,00,000 | For goods excluding specified ones |
| Madhya Pradesh | ₹1,00,000 | For 11 specified goods |
| Maharashtra | ₹1,00,000 | For all taxable goods |
| Punjab | ₹1,00,000 | For all taxable goods |
| Rajasthan | ₹50,000 to ₹1,00,000 | For taxable goods other than those from Chapter 24 |
| Tamil Nadu | ₹1,00,000 | For all taxable goods |
| West Bengal | ₹1,00,000 | For all taxable goods |
| Uttrakhand | ₹50,000 | For all taxable goods |
| Uttar Pradesh | ₹50,000 | For all taxable goods |
| Tripura | ₹50,000 | For all taxable goods |
| Telangana | ₹50,000 | For all taxable goods |
| Sikkim | ₹50,000 | For all taxable goods |
| Puducherry | ₹50,000 | For all taxable goods |
| Odisha | ₹50,000 | For all taxable goods |
| Nagaland | ₹50,000 | For all taxable goods |
| Mizoram | ₹50,000 | For all taxable goods |
| Meghalaya | ₹50,000 | For all taxable goods |
| Manipur | ₹50,000 | For all taxable goods |
| Kerala | ₹50,000 | For all taxable goods |
| Karnataka | ₹50,000 | For all taxable goods |
| Jammu and Kashmir | No e-way bill |
Integration With GST
The e-way bill system has significantly improved GST compliance by providing a digital trail of goods movement. It has reduced paperwork, and delays, besides facilitating real-time tracking of goods.
Conclusion
To sum up, the e-way bill is a digital document essential for goods transportation within India, mandated under the GST framework. It streamlines logistics, enhances compliance, and curbs tax evasion. Understanding its requirements, exemptions, and benefits is crucial for businesses to ensure smooth operations and avoid penalties.
FAQs
1. What is the difference between an invoice and an e-way bill?
An invoice is a commercial document issued by the supplier to the buyer, detailing the transaction. An e-way bill is an electronically generated document required for the movement of goods.
2. Who pays the e-way bill?
Either the supplier or the recipient can generate the e-way bill.
3. How many types of e-way bills are there?
Some common types of E-way bills are Regular E-way bills which pertain to the transportation of goods with the same HSN and Consolidated E-way bills used for transporting multiple consignments of goods in one conveyance.
4. What is the minimum distance required for an e-way bill?
The minimum distance required for an e-way bill is 50 km, and the maximum limit is 4,000 km.
5. Can we generate an e-way bill after delivery?
An e-way bill cannot be generated after delivery. It must be generated before the movement of goods.
6. What are the penalties associated with the e-way bill?
Penalties include fines for non-compliance, ranging from ₹10,000 to 200% of tax payable, depending on the situation.
7. Do I need an e-way bill for intrastate transactions?
The e-way bills are required for both intrastate and interstate movements of goods.
8. Can the validity period of an e-way bill be extended?
The current transporter can extend the validity period of an e-way bill.
9. Can an e-way Bill be cancelled?
An e-way bill can be cancelled within 24 hours of its generation by the person who created it.
10. Can I modify the details in an already generated e-way Bill?
Only Part-B details (such as vehicle number) can be updated; other details cannot be changed.
