Understanding e-Way Bills

What is an e-Way bill

An e-Way bill is a digital document detailing the transportation of goods from one location to another. It becomes obligatory for goods exceeding Rs. 50,000 under the GST framework and is initiated through the e-Way bill Portal, holding validity for a specified period.

When should an e-Way bill be issued?

An e-Way bill needs to be issued in several situations, depending on the value of the goods, the type of movement, and the registration status of the parties involved. Here's a breakdown:

Mandatory scenarios:

When the value of goods exceeds Rs. 50,000: This applies to all registered persons (suppliers, recipients, and transporters) moving goods within India.

Even when the value is less than Rs. 50,000, but:

The supplier is not registered under GST, but the recipient is.

The goods are specific items listed in the e-Way bill notification, regardless of their value.

The movement is inter-state, even if both parties are exempt from GST registration.

Optional scenarios:

Registered persons can choose to generate e-Way bills even for consignments with a value below Rs. 50,000.

Unregistered persons can voluntarily generate e-Way bills for their own convenience.

Cases when e-Way bill is not required

There are several cases where an e-Way bill is not required for transporting goods in India. Here are some key scenarios:

Exempted goods:

• Specific goods: Transporting specified goods listed in the annexure to the e-Way bill rules does not require an e-Way bill. Some examples include:
  • Liquefied petroleum gas for household and non-domestic exempted customers.
  • Alcoholic liquor for human consumption.
  • Petroleum crude, high-speed diesel, petrol, natural gas, or aviation turbine fuel.
  • Empty cargo containers.
• Goods exempted under notifications: Certain notifications issued by the government exempt specific goods from requiring an e-Way bill. You can find the current list of such notifications on the official e-Way bill website.

Specific transactions:

• Value below Rs. 50,000: If the value of the goods being transported is less than Rs. 50,000 and both the supplier and recipient are unregistered under GST, no e-Way bill is required.
• Non-motorised transport: E-Way bills are not necessary when goods are transported using a non-motorised conveyance like a handcart or bicycle.
• Movement under Customs supervision: Goods transported under customs supervision or under customs seal are exempt from e-Way bills.
• Transit cargo: Transporting goods in transit from or to Nepal/Bhutan doesn't require an e-Way bill.
• Government or local authority transport: When the government or local authorities act as the consignor for transporting goods by rail, an e-Way bill is not mandatory.
• Military movement: Goods transported by Ministry of Defence formations are exempt from e-Way bills.
• Weighbridge movement: transporting goods to/from a weighbridge within 20 km and back to the place of business, covered by a Delivery Challan (DC), doesn't require an e-Way bill.

E-Way bill system and rules

The E-Way Bill is issued through the official E0way portal, operating on a centralized online platform where taxpayers can create, adjust, and revoke E-Way Bills as needed. This system falls under government jurisdiction, with regulations set by the GST Council to ensure compliance with GST Laws. Here are the rules governing the E-Way Bill system:

1. Applicability: E-Way Bills are mandatory for goods valued at ₹50,000 or more, whether transported within a state or across state borders, with certain exceptions.

2. Validity period: The validity of an E-Way Bill depends on the distance covered by the goods, typically allowing one day for every 100 kilometres travelled.

3. Generation process: E-Way Bills are generated on the official online portal and contain comprehensive details about the goods. Any party responsible for transporting goods—such as the supplier, recipient, or transporter—can generate the E-Way Bill with requisite information.

4. Document requirements: It is essential to carry the E-Way Bill during transit in either physical or electronic form. Failure to produce the E-Way Bill may lead to penalties and confiscation of goods.

5. Enforcement: Tax authorities are authorized to intercept and verify E-Way Bills during transit. Non-compliance with E-Way Bill regulations and GST Laws may result in penalties and legal repercussions.

State-wise e-Way bill rules and limits

While the nationwide e-Way bill mandate kicks in for goods valued above Rs. 50,000 (interstate movement), individual states set their own thresholds and exemptions for intrastate movement of goods. Here's a breakdown of the key points:

Threshold limits:

• Most states: Require e-Way bills for intrastate movement exceeding Rs. 1,00,000. Examples include Andhra Pradesh, Bihar, Goa, Gujarat, etc.
• Few states: Have lower thresholds.
  • Karnataka: Rs. 50,000 for all taxable goods.
  • Delhi: Rs. 25,000 for certain categories of goods.
• Exemptions: Some states exempt specific goods or situations from e-way bill requirements, even within the threshold limit. Check the individual state notifications for details.

Additional rules:

• Distance limits: Several states have separate e-Way bill rules based on the transportation distance. For example, some may not require e-Way bills for movement within a certain distance (e.g., 10 km in some cases).
• Specific goods: States may have additional e-Way bill requirements for specific goods, regardless of the value or distance.
• Job work: Some states have special rules for e-Way bills when sending goods for work (processed by another party).

SMS e-Way bill generation on mobile

Generating e-Way bills via SMS on mobile is possible in India, but it comes with some limitations:

Eligibility:

• This method is only available for registered taxpayers with a mobile number linked to their GSTIN.
• It is not applicable to unregistered persons or for goods exempt from e-Way bills.

Limitations:

• SMS e-Way bill generation is only available for transactions within the state where your GSTIN is registered.
• You can only generate e-Way bills for goods exceeding Rs. 50,000 in value.
• The SMS format is specific to each state, so you need to know the exact format for your state.

Steps:

1. Register your mobile number: Go to the e-Way bill portal and register your mobile number under your GSTIN.
2. Prepare your information:  Gather details like date, invoice number, GSTIN of recipient, HSN code, vehicle number, and value of goods.
3. Compose the SMS: Use the specific format for your state, including the required information.
4. Send the SMS: Send the message to the designated state-specific number (e.g., 77382 99899 for West Bengal).
5. Receive confirmation: You'll receive an SMS confirmation with the e-Way bill number if successful.

Validity of e-Way bill

The validity of an e-Way bill depends on two factors: distance travelled and extension requests:

1. Distance-based validity:

• The initial validity period is calculated based on the approximate distance entered while generating the e-Way bill.
• For regular vehicles:
  • Every 100 km or part thereof adds one day to the validity.
  • For example, if the distance is 310 km, the validity will be 3+1 = 4 days.
• For Over dimensional cargo (ODC) vehicles:
  • Every 20 km or part thereof adds one day to the validity.

2. Extension requests:

• You can extend the validity of an e-Way bill eight hours before or within eight hours after it expires.
• This requires providing a reason for the extension and the updated distance travelled (if applicable).
• Extensions are only granted once.

3. Important points:

• The validity period ends at midnight on the last day.
• You can check the remaining validity of your e-Way bill on the e-Way bill portal.
• If you are caught transporting goods with an expired e-Way bill, you may face penalties.

Documents or details required to generate e-Way bill

Basic information:

• GSTIN of the supplier and recipient: This is the unique identifier assigned to each registered taxpayer under the Goods and Services Tax (GST) system.
• Date of generation: The date on which you are generating the e-Way bill.
• Invoice or bill of supply number: The unique identifier of the invoice or bill of supply associated with the goods being transported.
• HSN code of the goods: The Harmonized System Nomenclature (HSN) code identifies the specific type of goods being transported.
• Value of the goods: The declared value of the goods being transported.

Transportation information:

• Type of transport: Road, rail, air, or ship.
• Transporter ID (if applicable): The unique identifier assigned to the transporter, if you are using a registered transporter.
• Vehicle number (if no transporter ID): The registration number of the vehicle carrying the goods, if you are not using a registered transporter.
• Transport document number and date (for rail, air, or ship): The unique identifier and date of the transport document for rail, air, or ship transportation.

Additional information:

• Distance traveled: The estimated distance the goods will be transported. This is used to determine the initial validity period of the e-Way bill.
• e-Way bill validity extension (if applicable): If you need to extend the validity of the e-Way bill, you will need to provide a reason for the extension.
• e-Way bill generation mode: Specify whether you are generating the e-way bill through the online portal, SMS, or through a GSP (GST Suvidha Provider).

Who is obligated to generate an e-Way bill

The responsibility to generate an e-Way bill falls upon the following entities:

1. A registered individual orchestrating the movement of goods.
2. A registered individual receiving the goods.
3. A transporter handles the goods

Steps to generate e-Way bill on the portal

To create an e-Way bill on the e-Way bill portal, adhere to these steps:

1. Log in using your credentials
2. Select the ‘GENERATE NEW’ option within the ‘E-WAYBILL’ section
3. Input necessary details such as transaction type, sub-type, document specifics, and more
4. Specify item particulars like product name, description, HSN code, quantity, unit, value/taxable value, tax rates (CGST, SGST/IGST), and cess tax rate
5. Provide transporter details including the mode of transport and the approximate distance covered
6. Click ‘SUBMIT’ to generate the e-Way bill

How is an e-Way bill generated

An e-Way bill is electronically generated on the e-Way bill Portal. It can also be created or cancelled through SMS, Android App, and site-to-site integration via API.

Steps to download e-Way bill

Follow these steps to download an e-Way bill:

1. Log in to the e-Way bill Portal using your credentials
2. Click on the ‘PRINT EWB’ option under the ‘E-WAY BILL’ tab
3. Enter the e-Way bill number and click on the ‘GO’ button
4. The e-Way bill details will be displayed. Click on the ‘PRINT’ button to download the e-Way bill

Documents required to generate e-Way bill

The essential documents for e-Way bill generation include the invoice, bill, or challan related to the goods consignment. For road transport, provide the transporter ID or vehicle number, while for rail, air, or ship transport, include the transport document number and its date.

E-Way bill generation process

The E-Way Bill Generation Process holds significant importance within India's Goods and Services Tax (GST) framework. If you engage in the transportation of goods valued above ₹50,000 either inter-state or intra-state, generating E-Way Bills becomes mandatory. This process entails several steps, from registration on the E-Way Bill Portal to actually generating the E-Way Bill. Here's a detailed breakdown of how to generate an E-Way Bill:

1. Registration on the E-way bill portal: Businesses involved in supplying goods must register on the official E-Way Bill portal using their GST identification number (GSTIN). Access to functionalities for E-Way Bill generation, modification, and cancellation is enabled upon registration.

2. Logging into the portal: Once registered, taxpayers can log in to the E-Way Bill Portal using their credentials. This grants access to various features, including E-Way Bill generation.

3. Providing details: Navigate to the 'Generate E-Way Bill' section and input relevant consignment information. Details such as invoice/document number, invoice date, goods value, HSN/SAC codes, recipient's GSTIN, transporter details, and vehicle information are required.

4. Validating information: After inputting details, the portal validates the information to ensure compliance with GST regulations. Any errors must be rectified before proceeding.

5. Generating E-way bill: Upon successful validation, the portal generates a unique E-Way Bill number (EBN) and a corresponding QR code containing essential details. Taxpayers must download and print the E-Way Bill, ensuring it accompanies the goods during transit.

6. Transmission to stakeholders: The generated E-Way Bill is electronically transmitted to the supplier, recipient, and transporter involved in the goods movement.

7. Updating and modification: Taxpayers have the option to update or modify certain details such as vehicle number or route diversion within a specified time limit.

8. Cancellation: If goods are not transported or a transaction is cancelled, taxpayers must promptly cancel the E-Way Bill on the portal to avoid penalties.

The E-Way Bill generation process serves as a crucial component in facilitating the movement of goods under India's GST regime.