e-Way Bills were first introduced under the GST on 1st April 2018 for the inter-state movement of goods. After that, it also became applicable to the intrastate movement of goods.
e-Way Bill stands for Electronic Way Bill and is generated through the e-Way Bill Portal. It is compulsory for moving goods of value more than INR 50,000 by a vehicle from one place to another. One can also generate an e-Way Bill via SMS, Android app and site-to-site integration.
When an e-Way Bill is generated, an e-Way Bill Number (EBN) is allocated and is available to the supplier, recipient, and transporter. The physical copy of the e-Way Bill must be present with the transporter or the person in charge of the shipment and should include information about the goods, recipient, consignor/supplier and transporter.
Applicability of the e-Way Bill
e-Way Bill is required under the following cases –
- When a registered person transports goods worth more than INR 50,000, inter-state and intrastate; both
- When a person receives the supply of goods through transport worth more than INR 50,000 by an unregistered person.
Conditions for Issuing an e-Way Bill
An e-way bill is generated when there is a movement of goods through transportation of value more than INR 50,000 either of each invoice or the total of all the invoices in that consignment.
Movement of goods should be for
- Supply of goods
- For reasons other than supply, say; the return of goods
- Inward supply by an unregistered person
Here, supply means the following.
- A supply made for consideration, i.e. including payment in the course of business
- A supply made for a consideration, i.e. including payment, may not be in the course of business.
- A supply without consideration, without payment.
For example, transfers from one branch to another, or barter exchange i.e. exchanging goods against goods.
Hence, e-Way Bills should be generated on the common portal under the above-mentioned cases.
However, under certain specified cases, an e-Way Bill needs to be generated even though the value of goods is less than INR 50,000.
They are as follows –
- In case of inter-state movement of goods from the principal to the job-worker by the principal or the registered job-worker.
- In case of inter-state transport of handicraft goods by a person exempted from registration under GST.
Time for Generating the e-Way Bill
e-Way Bill is to be issued before the movement or transportation of goods start.
Validity of the e-Way Bill
- When the distance is less than 100 kilometres, an e-Way bill is valid for one day.
- When the distance is more than 100 kilometres, the validity of the e-Way Bill will be one day for every additional 100 kilometres or any part thereof.
- The validity period of an e-Way Bill starts from the time it is issued.
- The commissioner can extend the validity for certain categories of goods as specified under the notifications.
Generating the e-Way Bill
- Registered Person – When a registered person transports goods either by using his vehicle or a hired vehicle or by railways, or by air or by vessel, then the registered person should generate an e-Way Bill.
When the registered person receives goods of value more than INR 50,000, then the person should generate an e-Way Bill.
- Unregistered Person – When an unregistered person makes a supply of value more than INR 50,000, the unregistered person has to generate an e-Way Bill.
However, when the unregistered person is making such a supply towards a registered person, the registered person has to ensure that compliances with regards to e-Way Bills are followed.
- Transporters – The transporters carrying goods by road, air, rail, etc. should generate an e-Way Bill when goods are handed over to him, and the registered person should declare the details of the goods in this case.
Cases Where e-Way Bill is Not Required to Be Generated
Under certain cases, generating an e-Way Bill is not mandatory. They are as follows –
- When goods are transported through non-motor vehicles.
- When goods are transported from the Customs Port, Airport, Air Cargo Complex or Land Customs Station to Inland Container Depot or Container Freight Station for clearance by the customs.
- When goods are transported under the Customs supervision or Customs seal.
- When goods are transported under the Customs Bond from Inland Container Depot to the Customs Port or from one customs station to another.
- In case of any transit cargo transported from or to Nepal or Bhutan.
- When the movement of goods is because of defence formation with the Ministry of Defence as a supplier or recipient.
- When empty cargo containers are transported
- When goods are transported from the place of business of a supplier for a distance of up to 20 kilometres; to a weighbridge for weighing or back to the place of business from the weighbridge within the same state.
- When goods are transported by rail, given that the supplier of goods is the Central Government, any State Government or local authority.
- In the case where a state or union territory notifies any goods as exempt from the requirements of GST e-Way Bill for that state or union territory.
How to Generate an e-Way Bill?
- e-Way Bill can be generated through the e-Way Bill Portal.
- Login to the e-Way Bill Portal.
- Go to Form GST EWB-01.
- It contains two Parts, viz Part A and Part B.
- Under Part A, fill in the details of Goods.
- Under Part B, fill in the details of the vehicles.
Note: If there are multiple shipments transported through one vehicle, then the transporter should generate a consolidated e-Way Bill in Form GST EWB 02, and it should separately indicate the serial number of the E-Way Bill for each shipment.