eWay Bill

An electronic waybill, commonly known as an e-way bill, is a crucial document for transporting goods, whether across state borders or within a single state, under the GST system.

An e-way bill is an online document generated through the e-way bill portal (ewaybillgst.gov.in). This digital record verifies the movement of goods and functions as a compliance tool within the GST framework. The consignor or seller must input the required details about the goods into the portal to create the e-way bill.

Key details included in an e-way bill are:

• Consignor’s name
• Consignee’s name
• Origin of the shipment
• Destination
• Planned route

Under GST regulations, any registered individual who starts transporting goods with a consignment value above Rs. 50,000 must generate an e-way bill before the shipment commences.

The requirement for e-way bills is specified under Section 68 of the CGST Act and further elaborated in Rule 138 of the CGST Rules, 2017.

The obligation to use e-way bills for interstate shipments started on April 1, 2018. This requirement was extended to certain states for intrastate shipments (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Puducherry) beginning April 25, 2018.

An e-way bill must be created prior to the shipment of goods. This document needs to include crucial information such as the details of the consignor, recipient, and transporter.

Here are the scenarios where generating an e-way bill is mandatory:

1. For Goods Supply: An e-way bill is required every time goods are supplied.

2. For Non-Supply Scenarios: This includes various cases such as:

• Exporting or importing goods
• Returning goods
• Sending goods for job work
• Line sales
• Sales based on approval
• Supplying semi-assembled or completely knocked-down items
• Providing goods for exhibitions or fairs
• Goods intended for personal use

The e-Way Bill must be created in these situations for entities or individuals registered under GST:

1. Goods Valued Above Rs. 50,000: Both the supplier and recipient must generate an e-Way Bill when goods valued over Rs. 50,000 are transported to or from a GST-registered entity. This applies if the shipment's value exceeds Rs. 50,000.
2. Voluntary Generation for Lower Values: Even if the goods are worth less than Rs. 50,000, a registered person can choose to generate an e-Way Bill.
3. Unregistered Supplier: If an unregistered supplier sends goods to a GST-registered recipient, the responsibility to generate the e-Way Bill falls on the unregistered supplier. The registered recipient must ensure that the e-Way Bill is created as required.
4. Transporter's Responsibility: If a registered supplier fails to generate the e-Way Bill for goods in transit, the transporter must create the e-Way Bill, regardless of the shipment's value.
5. Delegation of PART-A Filling: The consignor can assign the task of filling out PART-A of the e-Way Bill to the transporter, courier service, or e-commerce operator.

Mandatory E-Way Bill Generation Scenarios

Generate an e-Way Bill in these two situations, even if the consignment's value is below Rs. 50,000:

1. Principal to Job Worker (Inter-State): When a principal sends goods to a job worker across state lines.
2. Exempt Handicraft Goods (Inter-State): For the inter-state transfer of handicraft items by a supplier not registered under GST.

Exemptions and Exceptions

Certain scenarios and goods are exempt from the e-Way Bill requirement:

Goods Exempt from E-Way Bill:

• Liquefied petroleum gas (LPG) for domestic and non-domestic exempted users.
• Postal parcels by the Department of Posts.
• Kerosene oil distributed via the Public Distribution System.
• Precious items like natural or cultured pearls, precious metals, and stones (Chapter 71).
• Currency.
• Used personal and household items.
• Coral (unworked and worked).

Customs-Related Exemptions:

• Goods transported from customs ports, airports, air cargo complexes, or land customs stations to inland container depots or freight stations for clearance.
• Transportation using non-motorized conveyances.

Specific Goods Exempt from E-Way Bill:

• Alcoholic beverages for human consumption.
• Petroleum crude.
• High-speed diesel.
• Motor spirit (petrol).
• Natural gas.
• Aviation turbine fuel.

Optional E-Way Bill Generation:

• If there is no supply as per Schedule III of the Act.

Additional Specific Exemptions:

• Transit cargo to and from Nepal or Bhutan.
• Goods exempt under various notifications.
• Rail transportation by Central, State Government, or local authority.
• Transport by defense formations under the Ministry of Defense.
• Transport of empty cargo containers.
• Goods transported within 20 km from the consignor’s business to the weighbridge, with a delivery challan.

E-Way Bill Validity

The validity of an e-Way Bill is based on the distance of transport. It is valid for one day per 100 kilometers or part thereof for regular vehicles. For Over Dimensional Cargo (ODC) vehicles, the validity is one day per 20 kilometers or part thereof. The validity period ends at midnight on the last day.

E-Way Bill Mechanism

Here’s how the e-Way Bill process works:

1. Registration on the Common Portal: Individuals must first register on the GST common portal to comply with e-Way Bill regulations.
2. Generation of E-Way Bill: After registration, the e-Way Bill can be generated on this portal.
3. Unique E-Way Bill Number: A unique e-Way Bill Number (EBN) is issued and made available to the supplier, recipient, and transporter through the portal.
4. Filing PART-A of Form GST EWB-01: Once PART-A of the form GST EWB-01 is completed, the portal allows the relevant party to view the e-Way Bill generated against their GSTIN.
5. Acceptance or Rejection: The recipient or other party must accept or reject the e-Way Bill details.
6. Deemed Acceptance: If there is no communication of acceptance or rejection within 72 hours of e-Way Bill generation or the delivery of goods (whichever is earlier), the details are deemed accepted by default.

An eWay Bill must be generated under certain conditions for individuals or businesses registered under GST. Here’s when it’s required:

Documents Needed for eWay Bill Generation:

For Road Transport:

• Invoice or Bill of Supply related to the goods being transported.
• Transporter ID or the vehicle number used for the shipment.

For Rail, Air, or Sea Transport:

• Invoice or Challan related to the goods.
• Transporter ID.
• Transport document number and date specific to the mode of transport (rail, air, or sea).

How to Register for an eWay Bill:

You can register for an eWay Bill through several methods available on the common portal:

• SMS: Register via SMS.
• Android App: Use the Android application for registration.
• Web Portal: The primary mode for registration.
• API Integration: For seamless integration with business systems.
• GST Suvidha Providers: Leverage services offered by GST Suvidha Providers.

Creating E-Way Bills is a simple task using the Eway Bill (EWB) portal. This platform allows you to issue both individual and bulk E-Way Bills, update vehicle details on existing bills, and cancel them if needed.

Issuing Through GSTN

You can generate an e-way bill through the GSTN portal. This process requires entering information about the goods, the consignor, the recipient, and the transporter.

Receiving the E-Way Bill Number (EBN)

After the bill is generated, an E-Way Bill Number (EBN) is issued to the supplier, recipient, and transporter involved in the goods' movement.

SMS Option for E-Way Bill Generation and Cancellation

For suppliers who lack internet access, e-way bills can be created or canceled via SMS. To use this service, suppliers must first register for SMS functionality on the GSTN portal by selecting the ‘For SMS’ option under the ‘Registration’ tab.

The details of the e-way bill can be viewed on the common GST portal by the recipient.

Note:

The recipient is required to either accept or reject the e-way bill on the portal. If no action is taken within 72 hours, the e-way bill will be deemed as 'accepted' automatically.

Penalties for E-Way Bill Violations

If goods are transported without a valid e-way bill, the responsible party faces a penalty of either Rs. 10,000 or the amount equivalent to the tax evaded on the consignment, whichever is greater.