Table of Contents
1. What is an e-Way Bill?
An e-Way Bill is an electronic document generated for moving goods from one place to another. It is required to transport goods valued over a certain threshold, typically Rs. 50,000, as specified by the respective tax authority.
The e-Way Bill contains details such as the origin and destination of the goods, the type and quantity of goods being transported, the mode of transportation, and the GST identification numbers of the parties involved.
It serves as proof of compliance with tax regulations and facilitates the monitoring and tracking of goods during transit. The e-Way Bill can be generated online through the designated portal provided by the tax authorities.
2. When Should e-Way Bill be Issued?
An e-Way Bill should be issued in the following scenarios:
- About a ‘supply’: When goods are moved in a vehicle or conveyance of value exceeding Rs. 50,000 (either for each invoice or the aggregate value of all invoices in a vehicle/conveyance). This includes goods transported for sale, transfer, exchange, or barter.
- For reasons other than a ‘supply’: When goods are being moved for reasons such as the return of goods, job work, exhibition, etc., and the value exceeds Rs. 50,000.
- Due to inward ‘supply’ from an unregistered person: When a registered person receives goods from an unregistered person, the e-Way Bill must be generated, regardless of the value of the goods.
There are certain specified goods for which the e-Way Bill needs to be generated mandatorily, even if the value of the consignment is less than Rs. 50,000. This includes the inter-state movement of goods from the principal to the job worker and the inter-state transport of handicraft goods by a dealer exempted from GST registration.
In summary, e-Way Bills must be generated on the common portal for all movements of goods as per the specified criteria mentioned above.
3. Who Should Generate an e-Way Bill?
The responsibility of generating an e-Way Bill lies with the following entities:
- Registered Persons: A registered person must generate an e-Way Bill when there is a movement of goods worth more than Rs. 50,000 to or from their business. However, even if the value of goods is less than Rs. 50,000, a registered person or the transporter may choose to generate and carry an e-Way Bill.
- Unregistered Persons: Unregistered persons are also required to generate an e-Way Bill. In cases where an unregistered person supplies goods to a registered person, the registered person assumes the responsibility of compliance and must generate the e-Way Bill.
- Transporters: Transporters carrying goods by road, air, rail, etc., are required to generate an e-Way Bill in situations where the supplier has not generated one. However, suppose the individual value of each consignment is less than or equal to Rs. 50,000, and the aggregate value of all consignments together exceeds Rs. 50,000. In that case, the transporter is not required to generate an e-Way Bill.
Unregistered transporters can obtain a Transporter ID by enrolling on the e-Way Bill portal, after which they can generate e-Way Bills to transport goods.
In summary, registered persons, unregistered persons in certain scenarios, and transporters are responsible for generating e-Way Bills based on the nature and value of the goods transported.
| 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. | 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: In cases where a transporter is transporting multiple consignments in a single conveyance, they can use Form GST EWB-02 to generate a consolidated e-Way Bill. This can be done by providing the e-Way Bill numbers of each consignment. If both the consignor (supplier) and the consignee (recipient) have not generated an e-Way Bill, the transporter can generate one by filling out PART A of FORM GST EWB-01. The necessary information can be obtained from the invoice, bill of supply, or delivery challan provided to them. By utilizing this process, the transporter can ensure compliance and facilitate the seamless movement of goods even in cases where the consignor or consignee has not generated an e-Way Bill.
4. Cases where e-Way Bill is Not Required
There are certain cases where it is not necessary to generate an e-Way Bill:
- Non-motor vehicle transportation: If the mode of transport used is a non-motor vehicle, generating an e-Way Bill is not required.
- Customs-related transportation: Goods being transported from a customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance do not require an e-Way Bill.
- Customs-supervised transportation: Goods transported under customs supervision or with customs seal are exempt from the e-Way Bill requirement.
- Transit cargo to Nepal or Bhutan: Goods transported to or from Nepal or Bhutan are exempt from generating an e-Way Bill.
- Defence-related transportation: The movement of goods by defence formations under the Ministry of Defence as a consignor or consignee does not require an e-Way Bill.
- Empty cargo containers: Transportation of empty cargo containers does not require an e-Way Bill.
- Weighment transportation: When goods are transported by the consignor between the place of business and a weighbridge for weighment within a distance of 20 km, accompanied by a delivery challan, an e-Way Bill is not required.
- Rail transportation by government entities: If the consignor of goods transported by rail is the Central Government, State Government, or a local authority, an e-Way Bill is not necessary.
- Exempted goods: Goods specified as exempt from e-Way Bill requirements in the respective State/Union Territory GST rules are not required to have an e-Way Bill.
- Specific goods: The transportation of certain specified goods, as listed in the Annexure to Rule 138(14) and in various tax rate notifications, may be exempt from e-Way Bill requirements.
Note: Part B of the e-Way Bill does not need to be filled if the distance between the consignor or consignee and the transporter is less than 50 km and the transportation is within the same state.
5. State-wise e-Way Bill Rules and Threshold Limits
The implementation of the e-Way Bill system for the inter-state movement of goods has gained traction since its introduction on April 1, 2018. All states and union territories have joined in the generation of e-Way Bills to move goods within their respective jurisdictions.
However, certain states have provided exemptions to their residents by waiving the requirement for e-Way Bill generation in cases where the value of goods falls below a specific threshold amount or for certain specified items. For example, Tamil Nadu exempts its residents from generating an e-Way Bill if the value of the goods is below Rs. One Lakh. To learn more about exemptions and threshold limits in other states and union territories, you can visit our page on state-wise e-Way Bill rules and threshold limits. Alternatively, you can also check the respective commercial tax websites of each state or union territory for detailed information.
6. Generating an e-Way Bill on the Portal: Step-by-Step Guide
To generate an e-Way Bill and obtain the corresponding e-Way Bill number, simply access the e-Way Bill Portal and log in using your credentials. Our comprehensive article, “Guide to Generate e-Way Bill Online,” provides a detailed step-by-step guide on e-Way Bill generation, ensuring a smooth and hassle-free process. Visit our article to access all the information you need to generate your e-Way Bill effectively on the portal.
7. Generating e-Way Bills via SMS on Mobile
Generating e-way bills through SMS on your registered mobile phone is convenient. Enable the SMS e-way bill generation facility by registering your mobile phone. Once registered, you can send specific SMS codes to a designated mobile number managed by the e-way bill portal/GSTN. These codes will allow you to seamlessly generate, manage, and cancel e-way bills.
8. Validity of e-Way Bill
The validity of an e-way bill is determined based on the distance covered by the goods being transported. The e-way bill is valid for a specific period starting from the date and time of its generation. In case the validity of the e-way bill is about to expire, the generator of the e-way bill can extend its validity. The extension can be done either eight hours before the expiry or within eight hours after the expiry of the e-way bill. This flexibility allows for the smooth continuation of the transportation process.
| Type of conveyance | Distance | Validity of EWB |
|---|---|---|
| Other than Over dimensional cargo | Less Than 200 Kms | 1 Day |
| Other than Over dimensional cargo | For every additional 200 Kms or part thereof | additional 1 Day |
| For Over dimensional cargo | Less Than 20 Kms | 1 Day |
| For Over dimensional cargo | For every additional 20 Kms or part thereof | additional 1 Day |
9. Required Documents and Details for e-Way Bill Generation
To generate an e-way bill, certain documents and details are required depending on the mode of transport. The followings are the documents or details needed:
- For transport by road: Invoice/Bill of Supply/Challan related to the consignment of goods, and either the Transporter ID or Vehicle number.
- For transport by rail, air, or ship: Invoice/Bill of Supply/Challan related to the consignment of goods, Transporter ID, Transport document number, and date mentioned on the document.
These documents and details are essential for accurately generating the e-way bill and ensuring compliance during the transportation of goods.
10. FAQ’s
Can I add two invoices in one e-way bill?
No, generating a single e-way bill for two invoices is impossible. However, you can use a consolidated e-way bill to combine multiple e-way bills.
Should I generate e-way bills for invoices raised for service-oriented transactions?
No, e-way bill rules do not apply to service-oriented transactions. Therefore, there is no need to generate an e-way bill for the supply of services.
Is an e-way bill required for goods billed within a 10 km radius?
Previously, goods moved within a state did not require an e-way bill if the distance was within 10 km. However, the limit has now been increased to 50 km.
How many days after raising an invoice should I generate the e-way bill for delayed delivery?
The e-way bill is required at the time of delivery of goods. If the invoice has been raised, but the goods have not been delivered yet, you can generate Part-A of the e-way bill. Part-B details can be added later upon delivery. The validity of the e-way bill begins when Part B is entered.
What is the responsibility and liability of the transporter in the e-Way bill system?
Transporters carrying goods by road, air, rail, etc., are also required to generate an e-way bill if the supplier has not done so. The transporter should generate the e-way bill based on the information provided by the supplier or consignor regarding the invoice or challan. Failure to generate the e-way bill when required may result in penalties, confiscation of goods, and vehicle seizure.
How many e-way bills are required when involving multiple transporters for a single consignment?
Only one e-way bill needs to be generated against the invoice. In transhipment cases where different transporters are involved, the initial transporter can reassign the e-way bill to another transporter by updating the transporter ID on the e-way bill portal. It is not possible to generate multiple e-way bills against a single invoice.
How are the “Value of Consignment of Goods” criteria applied?
The “Value of Consignment of Goods” is determined based on two conditions: the invoice value exceeding Rs. 50,000 or the aggregate invoice value exceeding Rs. 50,000 when multiple invoices are transported in a vehicle. If either condition is satisfied, an e-way bill should be generated.
Is an e-way bill required if the shipment value per customer per day exceeds Rs. 50,000? How can multiple invoices be covered under a single e-way bill?
Whether an e-way bill is required in this scenario depends on whether the supplier is also the transporter. If the supplier is the transporter, they must generate an e-way bill for all invoices. If the supplier is not the transporter, the transporter will be responsible for generating an e-way bill for all the invoices in the vehicle.