Basic of e-Way Bill

1. What is an e-way bill?

An e-way bill is a document that must be generated and carried by certain individuals or businesses when transporting goods worth more than a certain value from one place to another within India. The e-way bill contains details of the consignment, such as the name of the supplier and recipient, the goods being transported, their value, the place of origin, and the destination.

The Indian government introduced the e-way bill system under the Goods and Services Tax (GST) regime to ensure that the movement of goods is properly documented and can be tracked by tax authorities. The aim is to prevent tax evasion and ensure compliance with GST regulations.

Under the GST regime, an e-way bill must be generated by the person causing the movement of goods, such as the supplier or the transporter, before the movement of goods. The e-way bill must be generated on the GSTN (Goods and Services Tax Network) portal or mobile application.

Once the e-way bill is generated, it must be carried by the person transporting the goods along with the invoice and other relevant documents. The e-way bill is valid for a specified period, which varies depending on the distance that needs to be covered for the transportation of the goods.

In summary, an e-way bill is a digital document that must be generated and carried when transporting goods worth more than a certain value within India under the GST regime. Its purpose is to document the movement of goods and ensure compliance with GST regulations.

2. What are the components of an e-way bill?

The e-way bill is a document that must be generated and carried by certain individuals or businesses when transporting goods worth more than a certain value from one place to another within India. The e-way bill consists of the following components:

• GSTIN (Goods and Services Tax Identification Number): This is the unique 15-digit number assigned to each registered person under the GST regime.
• Invoice or challan number and date: The invoice or challan number and date must be mentioned in the e-way bill. This information helps to identify the consignment and track its movement.
• Goods and Services Tax (GST) rates: The GST rates applicable to the goods transported must be mentioned in the e-way bill. This helps to calculate the tax liability on the consignment.
• Description of goods: The e-way bill must contain a description of the goods being transported, including their quantity, value, and HSN (Harmonized System of Nomenclature) code.
• Sender and recipient details: The e-way bill must contain the name, address, and GSTIN of the sender and the recipient of the goods.
• Transporter details: The details of the transporter, including their name, vehicle number, and transporter ID, must be mentioned in the e-way bill.
• Distance to be covered: The distance to be covered for the transportation of the goods must be mentioned in the e-way bill. This determines the validity period of the e-way bill.

In summary, an e-way bill consists of components such as GSTIN, invoice or challan number and date, GST rates, description of goods, sender and recipient details, transporter details, and distance to be covered. The e-way bill is crucial for transporting goods within India under the GST regime.

3. When is an e-way bill generated?

An e-way bill is generated when goods worth more than Rs. 50,000 are transported from one place to another within India under the Goods and Services Tax (GST) regime. The e-way bill must be generated before the commencement of the movement of goods, and it must be carried by the person transporting the goods along with the invoice and other relevant documents.

The e-way bill must be generated by the person causing the movement of goods, such as the supplier, the recipient, or the transporter. The e-way bill can be generated on the GSTN (Goods and Services Tax Network) portal or mobile application. The person generating the e-way bill must provide the relevant details, including the GSTIN of the supplier and the recipient, the invoice or challan number and date, the description of goods, and the transporter details.

The e-way bill is valid for a specified period, which varies depending on the distance that needs to be covered for the transportation of the goods. The validity period is calculated based on the distance between the source and the destination of the consignment, and it is mentioned in the e-way bill.

An e-way bill must be generated before the movement of goods worth more than Rs. 50,000 within India under the GST regime. It must be generated by the person causing the movement of goods and carried by the person transporting them along with the invoice and other relevant documents. The validity period of the e-way bill is determined based on the distance to be covered for the transportation of the goods.

4. Who should generate an e-way bill?

Under India’s Goods and Services Tax (GST) regime, an e-way bill must be generated by the person causing the movement of goods, such as the supplier, the recipient, or the transporter. The e-way bill is required to transport goods worth more than Rs. 50,000 from one place to another within India.

Here are the specific scenarios in which an e-way bill must be generated and by whom:

1. Supplier: If the supplier is registered under GST and sends the goods to a registered recipient, the supplier must generate the e-way bill.
2. Recipient: If the recipient is registered under GST and receives the goods from a registered supplier, the recipient can choose to generate the e-way bill instead of the supplier.
3. Transporter: If the supplier or the recipient has yet to generate the e-way bill, the transporter must generate the e-way bill before transporting the goods.

If an unregistered person is transporting the goods, the responsibility of generating the e-way bill lies with the person causing the movement of goods.

In summary, the person causing the movement of goods, such as the supplier, the recipient, or the transporter, is responsible for generating the e-way bill under the GST regime in India. The e-way bill is mandatory for transporting goods worth more than Rs. 50,000 within India.

5. How is an e-way bill generated?

An e-way bill is generated electronically on the Goods and Services Tax Network (GSTN) portal. The e-way bill is required to transport goods worth more than Rs. 50,000 from one place to another within India under the GST regime.

Here are the steps to generate an e-way bill on the GSTN portal:

• Visit the GSTN portal: Go to the official GSTN portal (https://ewaybillgst.gov.in/).
• Login: Enter your login credentials, such as your GSTIN (Goods and Services Tax Identification Number) and password.
• Click on ‘Generate new’: Click on the ‘Generate new’ option on the e-way bill dashboard.
• Fill in the details: Enter the relevant details, such as the GSTIN of the supplier and recipient, the invoice or challan number and date, the description of goods, the transporter details, and the distance to be covered.
• Validate the details: Validate the details entered in the e-way bill form.
• Generate the e-way bill: Click on the ‘Generate’ button to generate the e-way bill.
• Print the e-way bill: Once the e-way bill is generated, print it out and carry it along with the invoice and other relevant documents during the transportation of goods.

Alternatively, an e-way bill can also be generated using a mobile application. The process of generating the e-way bill through the mobile application is similar to the process on the GSTN portal.

In summary, an e-way bill can be generated electronically on the GSTN portal by entering the relevant details and validating the details entered. The e-way bill must be printed along with the invoice and other relevant documents while transporting goods.

6. Validity of an e-way bill

The validity of an e-way bill varies depending on the distance that needs to be covered for the transportation of goods. The e-way bill is generated electronically on the Goods and Services Tax Network (GSTN) portal. It is required to transport goods worth more than Rs. 50,000 from one place to another within India under the GST regime.

Here are the validity periods for an e-way bill:

• For distances up to 100 km: The e-way bill is valid for one day from the generation date.
• For distances between 100 km and 300 km: The e-way bill is valid for three days from the generation date.
• For distances between 300 km and 500 km: The e-way bill is valid for five days from the generation date.
• For distances between 500 km and 1,000 km: The e-way bill is valid for ten days from the generation date.
• For distances over 1,000 km: The e-way bill is valid for fifteen days from the generation date.

It is important to note that the validity of the e-way bill cannot be extended once it has expired. If the transportation of goods is not completed within the validity period of the e-way bill, a new e-way bill must be generated.

In summary, the validity of an e-way bill depends on the distance to be covered for the transportation of goods, and it ranges from one day to fifteen days from the date of generation. The validity of the e-way bill cannot be extended, and a new e-way bill must be generated if the transportation of goods is not completed within the validity period.

7. Required Documents for Goods Transportation

Under the Goods and Services Tax (GST) regime in India, the person in charge of the transportation of goods must carry certain documents during the transportation of goods. These documents help establish the transportation’s legality and ensure that the goods are being transported in compliance with the GST laws. Here are the documents that must be carried:

• E-way bill: The person in charge of the transportation of goods must carry the e-way bill generated electronically on the Goods and Services Tax Network (GSTN) portal. The e-way bill is mandatory for transporting goods worth more than Rs. 50,000 from one place to another within India.
• Invoice or delivery challan: The person in charge of transporting goods must carry the invoice or delivery challan related to the goods being transported. The invoice or delivery challan must contain details such as the name and address of the supplier and recipient, the description of goods, the quantity, the value, and the tax charged.
• Transport document: The person in charge of transporting goods must carry the transport document related to the goods being transported. The transport document can be a goods receipt, a railway receipt, an airway bill, or a bill of lading.
• GST registration certificate: The person in charge of transporting goods must carry a copy of their GST registration certificate or a unique identification number (UIN) issued by the GSTN.
• Other documents: Depending on the nature of the goods being transported, the person in charge of the transportation of goods may need to carry additional documents, such as a health certificate or a license to transport hazardous goods.

In summary, the person in charge of the transportation of goods must carry the e-way bill, invoice or delivery challan, transport document, GST registration certificate, and any other relevant documents during the transportation of goods. These documents help establish the transportation’s legality and ensure compliance with the GST laws.

8. e-way Bill Exemptions

Under India’s Goods and Services Tax (GST) regime, certain categories of goods and transactions are exempt from the requirement of an e-way bill. Here are the e-way bill exemptions:

• Goods transported by non-motorized conveyance: E-way bill is not required for goods transported by non-motorized conveyance, such as bicycles and bullock carts.
• Goods transported within a notified area: E-way bill is not required for goods transported within a notified area, such as a municipal corporation, a local authority, or a special economic zone.
• Goods transported by a non-registered person: E-way bill is not required for goods transported by a non-registered person, except for goods transported by a principal to a job worker and vice versa.
• Goods transported by a government department: E-way bill is not required for goods transported by a government or local authority.
• Goods transported by rail, air, or vessel: E-way bill is not required for goods transported by rail, air, or vessel, except for goods transported by a courier agency.

9. Goods exempted from GST: 

E-way bill is not required for goods exempted from GST under the GST laws.

Specified goods exempted from the e-way bill: The GST Council may specify certain goods exempted from the requirement of an e-way bill based on the value, weight, or volume of the goods.

It is important to note that even if the e-way bill is not required for certain goods or transactions, the person in charge of the transportation of goods must still carry the relevant documents, such as the invoice or delivery challan and the transport document, during the transportation of goods.

In summary, certain categories of goods and transactions are exempt from the requirement of an e-way bill, such as goods transported by non-motorized conveyance, within a notified area, by a non-registered person, by a government department, by rail, air, or vessel, or exempted from GST. The GST Council may also specify certain goods exempted from the requirement of an e-way bill. However, relevant documents must still be carried out while transporting goods.