E-Way Bill: Meaning, Rules, & Online Generation

29 JANUARY, 2024

Introducing the Goods and Services Tax (GST) in India has created several compliance mechanisms, including the E-Way Bill. It is an important digital document that is necessary for vehicles carrying goods. Transporters must carry an E-Way Bill to move goods under specific circumstances.

What is an E-Way Bill?

An E-Way Bill is an electronic document required for transporting goods worth more than INR 50,000. It must be generated on the E-Way Bill Portal before you can transport the goods in any vehicle exceeding this value threshold. This process is important for GST compliance, and the bill can be accessed at https://ewaybillgst.gov.in/

In addition to web-based generation, the E-Way Bill can be created or cancelled through various methods, such as SMS, an Android App, and API integration, for seamless site-to-site data transfer. This ensures that all parties use the correct GSTIN. It is important to verify the GSTIN using the GST search tool provided on the portal.

Upon generation of the bill, the EBN or E-Way Bill Number (EBN) will be assigned, which is very important for the recipient, supplier, and transporter. It serves as a reference for all parties involved in the movement of the goods.

When should an E-Way Bill be generated?

Here are the circumstances when an E-Way bill is required:

Value Exceeds Rs. 50,000: For goods valued at over Rs. 50,000, generating an e-Way bill is imperative. This process ensures meticulous tracking and documentation of the goods' movement, enhancing transparency and regulatory compliance.
Supplier Not GST-Registered, Receiver GST-Registered: In cases where the supplier lacks GST registration but the recipient holds GST registration, it becomes the responsibility of the GST-registered party to ensure adherence to the e-Way bill requirement.
Unavailability of e-Way Bill by Supplier: When the supplier has yet to generate the e-Way bill, the onus falls on the transporter to create one. It holds, regardless of the chosen mode of transportation, streamlining the documentation process.

Who should generate an e-Way Bill?

This section outlines the responsibilities regarding the generation of an E-Way Bill. Whether you are a registered business, an unregistered transporter, or a recipient of goods, understanding who must generate this document is important for compliance with GST regulations.

Registered Person

Must generate an E-Way Bill for transport of goods over INR 50,000.
They can also generate lower values optionally.
They must fill out Part A of Form GST EWB-01 before movement.

Unregistered Persons

Are required to generate an E-Way Bill.
If supplying to a registered person, the recipient must ensure compliance.

Transporter

Must generate an E-Way Bill if the supplier has not.
May opt not to generate if individual consignment values are below INR 50,000 but the overall value exceeds INR 50,000.
They need to use Form GST EWB-02 for consolidated E-Way Bills.

How to generate an e-Way Bill Online?

Now, how do you generate an E-Way bill online? It can be done through the GST portal, which is a simple process. Follow these steps:

Step 1: Login -

Visit the E-Way bill portal (https://ewaybillgst.gov.in/ )and enter your username, password, and the captcha code to log in to the E-Way bill system.

Step 2: Navigate to 'Generate New' -

Go to the dashboard's left side, click the 'E-Way bill' option and select 'generate new.'

Step 3: Fill in the Details -

Transaction Type: Choose 'outward' for suppliers and 'inward' for recipients.
Sub-type: Select the applicable sub-type.
Document Type: Choose the document type (invoice, bill, challan, etc.).
Document Details: Enter the document/invoice number and date.
From/To Details: Provide details based on whether you are a supplier or recipient. For unregistered clients, use 'URP' in the GSTIN field.
Item Details: Specify consignment details, including product name, description, HSN code, quantity, unit, value, tax rates, and other applicable taxes.
Transporter Details: Include mode of transport, distance, and either transporter details or vehicle number.

Step 4: Submit -

Click 'submit.' The system will validate the data, and if it is error-free, it will process your request, generating the E-Way bill (Form EWB-01) with a unique 12-digit number.

Furthermore, you can also generate the E-Way bill through SMS using your registered mobile number. To initiate this process, activate the SMS E-Way bill generation feature and register your mobile number. Next, send the required SMS codes to the designated mobile number managed by the E-Way bill portal/GSTN to create, manage, and cancel E-Way bills.

When is an E-Way bill not required?

The non-motor vehicle is the mode of transport.
Goods are 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.
Goods are transported under customs supervision or a customs seal.
Goods transported under Customs Bond from ICD to Customs port or between customs stations.
Transit cargo to or from Nepal or Bhutan.
Movement of goods by defence formation under the Ministry of Defence as a consignor or consignee.
Empty cargo containers are being transported.
Consignor transporting goods to or from the place of business and a weighbridge for weighing within 20 km, accompanied by a delivery challan.
Goods are transported by rail where the Consignor is the Central Government, State Government, or a local authority.
Goods are exempted from E-Way bill requirements per respective State/Union territory GST Rules.
Transport of specified goods as per Annexure to Rule 138(14), goods treated as no supply in Schedule III, and certain goods in Schedule to Central Tax Rate notifications.

What is the Validity of the e-Way Bill?

This section explains the duration for which an E-Way Bill remains valid, primarily determined by the distance the goods are transported. Understanding the validity period is important for ensuring your transportation plans comply with GST regulations without interruption.

Type of Conveyance	Distance	Validity
Standard Goods	Less than 200 km	1 day
Standard Goods	200 km and above	1 additional day for every 200 km or part thereof
Over-dimensional Cargo	Less than 20 km	1 day
Over-dimensional Cargo	20 km and above	1 additional day for every 20 km or part thereof

The E-Way Bill generator can extend its validity eight hours before or within eight hours after its expiry.

Documents Required for e-Way Bill

This section provides a comprehensive guide on the documents required to generate an E-Way Bill. Whether you're transporting by road, rail, air, or ship, having the correct documentation is crucial for compliance.

Invoice/Bill of Supply/Challan of the consignment.
For transport by road – You need the Vehicle number or Transporter ID
For transport by air, rail, or ship – You will need the Transport document number, Transporter ID, and date.

E-Way Bill Rules and Limits based on states

Now, one more question arises: Is the E-Way bill mandatory for all states in India? Different states have varying rules and limits for generating E-Way bills while moving goods. Since April 1, 2018, all states and union territories (UTs) have adopted E-Way bill systems, ensuring uniformity. However, exemptions exist for specific states.

For example, in Tamil Nadu, residents don't need to generate an E-Way bill if the total value of the goods is below Rs. 1 Lakh. (For details, you can check the complete list of state-wise rules on the official E-Way bill website).

The E-Way Bill is mandatory across all states, but some exceptions are based on the value of goods transported.

State	Goods Type	Threshold for e-Way Bill (INR)
Andhra Pradesh	All taxable goods over a specified value	50,000
Arunachal Pradesh	All taxable goods	50,000
Assam	All taxable goods	50,000
Bihar	Taxable and non-taxable goods	1,00,000
Chhattisgarh	Selected specific goods only	50,000
Delhi	Taxable and non-taxable goods	1,00,000
Goa	Limited to 22 specified goods	50,000
Gujarat	Excludes specified job-related goods category	No E-Way Bill is required
Haryana	All taxable goods	50,000
Himachal Pradesh	All taxable goods	50,000
Jammu and Kashmir	Within the Union Territory	No E-Way Bill is required
Jharkhand	All goods except specified ones	1,00,000
Karnataka	All taxable goods	50,000
Kerala	All taxable goods	50,000
Madhya Pradesh	Limited to 11 specified goods	1,00,000
Maharashtra	All taxable goods	1,00,000
Manipur	All taxable goods	50,000
Meghalaya	All taxable goods	50,000
Mizoram	All taxable goods	50,000
Nagaland	All taxable goods	50,000
Odisha	All taxable goods	50,000
Puducherry	All taxable goods	50,000
Punjab	All taxable goods	1,00,000
Rajasthan	All goods, excluding certain categories	50,000 - 1,00,000
Sikkim	All taxable goods	50,000
Tamil Nadu	All taxable goods	1,00,000
Telangana	All taxable goods	50,000
Tripura	All taxable goods	50,000
Uttar Pradesh	All taxable goods	50,000
Uttarakhand	All taxable goods	50,000
West Bengal	All taxable goods	1,00,000

How to generate an E-Way Bill Online?

Now, how do you generate an E-Way bill online? It can be done through the GST portal and is a simple process. Follow these steps:

Step 1: Log in

Visit the E-Way bill portal and enter your username, password, and the captcha code to log in to the E-Way bill system.

Step 2: Navigate to 'Generate New'

Go to the dashboard's left side, click the 'E-Way bill' option and select 'generate new.'

Step 3: Fill in the Details

- Transaction Type: Choose 'outward' for suppliers and 'inward' for recipients.
- Sub-type: Select the applicable sub-type.
- Document Type: Choose the document type (invoice, bill, challan, etc.).
- Document Details: Enter the document/invoice number and date.
- From/To Details: Provide details based on whether you are a supplier or recipient. For unregistered clients, use 'URP' in the GSTIN field.
- Item Details: Specify consignment details, including product name, description, HSN code, quantity, unit, value, tax rates, and other applicable taxes.
- Transporter Details: Include mode of transport, distance, and either transporter details or vehicle number.

Step 4: Submit

Click 'submit.' The system will validate the data, and if it is error-free, it will process your request, generating the E-Way bill (Form EWB-01) with a unique 12-digit number.

FAQs about E-Way Bill

1) 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 two or more individual E-Way bills.

2) Should I generate E-Way bills for invoices raised for supply services?

No, the E-Way bill regulations do not extend to service-oriented transactions. Therefore, generating an E-Way bill is not required to supply services.

3) How many days after raising an invoice should I generate the E-Way bill for delayed delivery?

The E-Way bill is essential at the time of goods delivery. If the invoice is raised, but the goods are not delivered, you can generate Part A of the E-Way bill. Part-B details can be added later upon delivery, and the E-Way bill's validity begins when Part-B details are entered.

4) Can an E-Way bill be cancelled, and when?

Yes, an E-Way bill can be cancelled if the goods are not transported or the transportation deviates from the specified details. However, the cancellation must be done within 24 hours of E-Way bill generation.

5) What is the purpose of an E-Way Bill?

The E-Way Bill facilitates the efficient transportation of goods throughout India. It streamlines processes and ensures that all movements align with GST regulations, making things quicker and more compliant.

6) Is the E-Way Bill mandatory?

Yes, generating an E-Way Bill is important if you move goods worth more than INR 50,000. It's a key part of complying with GST rules and is required for transporting goods across state lines or within states under certain conditions.