About e Way Bill? Detailed E Waybill Rules & Generation Process
When specific conditions are met, transporters must carry an E Way Bill when transferring goods from one location to another under GST. The following subjects are covered in this article:
What is an eWay Bill?
EWay Bill is an electronic way bill that can be generated on the eWay Bill Portal online for the movement of goods. Without an e-way bill created on ewaybillgst.gov.in, a GST registered person cannot move goods in a vehicle with a value above Rs. 50,000 (Single Invoice/bill/delivery challan).
In addition to this, Eway bill can also be canceled or generated via Android App, SMS, and site-to-site integration through API. Also, a unique Eway Bill Number (EBN) is assigned to each eway bill and is available to the recipient, provider, and transporter.
When will the eWay Bill be issued?
When there is a movement of goods in a vehicle/conveyance with a value of more than Rs. 50,000 (either per invoice or in the aggregate of all invoices in a vehicle/conveyance), aneWay bill will be created.
- In the context of a ‘supply,’
- For reasons unrelated to a ‘supply’ ( say a return)
- As a result of an unregistered person’s inward “supply,”
A supply for this purpose could be one of the following:
- In the process of business, a supply made for a consideration (payment).
- A supply made for a monetary consideration (payment) that isn’t always in the course of business.
- A supply made without consideration (without payment)
- In layman’s terms, the term’supply’ usually refers to:
- Sale – a transaction in which products are sold and money is exchanged.
- Transfer – branch transfers, for example
- Barter/Exchange – where items are exchanged for money rather than cash.
As a result, eWay Bills for all of these forms of movements must be generated on the same platform. Even if the value of the consignment of Goods is less than Rs. 50,000, the eway bill must be generated mandatorily for specific specified Goods:
- Inter-State movement of products from the principal to the job-worker by the principal/registered job-worker***
- Inter-State transportation of handicraft goods by a dealer free from GST Registration
An eWay Bill should be generated by whom?
- Registered Person – When there is a movement of items valued at more than Rs 50,000 to or from a registered individual, a eway bill must be generated. Even if the value of the items is less than Rs 50,000, a registered individual or the transporter may choose to generate and carry a eway bill.
- Unregistered Individuals – unregistered individuals must also generate an e-Way Bill. When an unregistered person makes a supply to a registered person, the receiver is responsible for ensuring that all compliance requirements are completed as if they were the supplier.
- Transporter -Transporters who transport products by road, air, rail, or other means must also generate an e-Way Bill if the supplier has not done so.
When unregistered transporters enroll on the e-way bill portal, they will be given a Transporter ID, after which Eway bills can be generated.
|Every registered person under GST||Fill Part A||Before movement of goods||Form GST EWB-01|
|Registered person is consignor or consignee and goods are handed over to transporter of goods||Fill Part B||Before movement of goods||The registered person shall provide the information regarding the transporter in Part B of FORM GST EWB-01|
|Registered person is consignor or consignee (mode of transport may be owned or hired) OR is the recipient of goods||Fill Part B||Before movement of goods||Form GST EWB-01|
|Transporter of goods||Before movement of goods||Generate an e-way bill based on the information provided by the registered individual in Part A of the GST EWB-01 form.|
|An unregistered person under GST and recipient is registered||Compliance to be done by Recipient as if he is the Supplier.||1. If the goods are transported for a distance of fifty kilometers or less within the same State/Union territory from the consignor’s place of business to the transporter’s place of business for further transportation, neither the supplier nor the transporter is required to provide the details of conveyance in Part B of FORM GST EWB-01 2. The information in Part A of FORM GST EWB-01 must be filled in by the consignor or beneficiary if the supply is conducted by air, ship, or railways.|
Note: If a transporter is conveying many consignments in a single conveyance, the form GST EWB-02 can be used to generate a consolidated e-way bill by providing the e-way bill numbers for each consignment. If neither the consignor nor the consignee has established an e-way bill, the transporter can do so * by completing PART A of FORM GST EWB-01 using the invoice/bill of supply/delivery challan provided to them.
When an eWay bill Isn’t Necessary
It is not essential to generate e-Way Bill in the following situations:
- The mode of transportation is a non-motorized vehicle.
- Goods transferred to the Inland Container Depot (ICD) or Container Freight Station (CFS) for Customs clearance from a Customs port, airport, air cargo complex, or land customs station.
- Goods transported under customs seal or Customs supervision
- Transit cargo transported to or from Bhutan or Nepal.
- Goods that are transported under a Customs Bond from one customs station to another or from an ICD to a Customs port.
- Movement of products caused by defense formations acting as consignors or consignees under the Ministry of Defense
- Cargo containers that are empty and are being transported.
- IConsignor transporting goods to or from between place of business and a weighbridge for weighment (at a distance of 20 kilometers), followed by a Delivery challan.
- The Central Government, State Governments, or a local body are the consignors of commodities being transported by rail.
Note: When the distance between the consignor or consignee and the transporter is less than 50 kilometers and the transportation is inside the same state, Part B of the e-Way Bill is not necessary to be filled out.
The Current State of Implementation in India
Since the implementation of eway bills on April 1, 2018, there has been an increase in the quantity of eway bills generated for the Inter-State movement of goods. The state-by-state implementation of the e-way bill system has received a positive reaction, with all states and union territories joining the league in the generation of e-way bills for intra-state/UT transportation of products.
Generate E – Way Bill Online
On the e-Way Bill Portal, you can generate an E-Way Bill. All you need is a Portal username and password. Check out our post for a thorough step-by-step explanation on how to generate an e-Way Bill.
- First of all, you need to go to the official website of the e-way bill.
- Now on the top right corner of the home page, click on the login option. A window will open. Here you need to type Username, password, and Captcha code and then click on the ‘Login’ option.
- On the left-hand side of the dashboard, under the ‘E-waybill’ option, select ‘Generate new.’
- On the screen that appears, fill in the following fields:
- Transaction Type: If you are a consignment supplier, choose ‘outward.’ If you are a consignment recipient, choose ‘inward.’
- Type of subtype: Choose the appropriate sub-type for you: When the Outward transaction type is selected, the following subtypes appear:
The following subtypes appear if the transaction type is set to Inward:
Please note that SKD/CKD is Semi knocked down condition/ Complete knocked down condition.
- If not listed, choose one of the following document types: invoice, bill, challan, credit note, bill of entry, or others.
- Document No. : Type document/invoice number.
- Document Date: Choose the date of document or Invoice or challan.
Remember don’t type the future date because the system will not allow the user to enter a date in the future.
- To/from Enter the To / From section details depending on whether you are a supplier or a recipient.
Note: If the supplier or client is not registered, enter ‘URP’ in the GSTIN field to indicate that they are a ‘Unregistered Person.’
- Details about the item: In this part, enter the consignment’s details (HSN code-wise):
- Product name
- HSN Code
- Value/Taxable value
- Tax rates of CGST and SGST or IGST (in %)
- Tax rate of Cess, if any charged (in %)
Details on transporter: This section must include the mode of transportation (road, rail, ship, or air) as well as the approximate distance traveled (in kilometers). Other than that, either of the following information can be mentioned:
- Transporter name, transporter ID, transporter Doc. No. & Date
- OR Vehicle number in which the cargo is being transported.
Type the Vehicle No. as per the format given below the box.
Note: For frequently utilized items, clients/customers, suppliers, and transporters, first edit the ‘My masters’ section, which is also accessible from the login dashboard, and then proceed.
- Press the ‘Submit button. If there are any errors, the system checks the data and displays an error message.
- Otherwise, your request will be processed and a eway bill in Form EWB-01 will be generated with a unique 12 digit number. The generated eway bill looks like this:
- Print and carry the eway bill for the products being transported in the chosen method of transport and conveyance.
You can print the e-way bill at any moment by following these instructions:
- Under the ‘e-Waybill’ option, select the ‘Print EWB’ sub-option.
- Click on ‘Go’ after entering the applicable eway bill number (12 digit number).
- On the EWB that appears, click the ‘Print’ or ‘detailed print’ button:
Validity for eWay Bill
Note: While Eway bills are implemented, related entries in the associated GST Return can be auto-populated based on the information entered here when submitting on the GST portal.
The validity of an e-way bill is determined by the distance traveled by the goods and is listed below. The validity of an e-way bill is determined by the date and hour of its generation.
|Type of transportation||Distance||Validity of EWB|
|For Over dimensional cargo||Less Than 20 Kilometers||1 Day|
|For every additional 20 Kilometers or part thereof||additional 1 Day|
|Other than Over dimensional cargo||Less Than 100 Kilometers||1 Day|
|For every additional 100 Kilometers or part thereof||additional 1 Day|
The validity of an Eway bill can also be extended. The creator of such an Eway bill must extend the bill’s validity four hours before it expires or four hours after it has expired.
Documents needed at the time of generating an eWay Bill
- Invoice/ Challan/ Bill of Supply related to the consignment of goods
- Transport by road – Vehicle number or Transporter ID
- Transport by rail, ship or air – Transporter ID, date on the document Transportand document number
Transporters transporting products by road, air, rail, and other modes of transportation must also generate an e Way Bill if the supplier has not done so for any reason. Generate an e-way bill based on information supplied by suppliers and consignors about the invoice/challan. If the transporter fails to generate when necessary in the aforesaid conditions, he may be subject to a penalty of Rs 10,000 or the tax sought to be evaded (wherever applicable) whichever is greater, as well as the confiscation of goods and seizure of the vehicle.
Against the invoice, one e-Way bill must be generated. The circumstance described above is referred to as “Transshipment.” By updating the transporter ID on the eway bill site, the transporter can also reassign another transporter. The seller cannot make any changes to the allocated transporter after the transporter reassigns another transporter. Because separate e-way bills against a single invoice are not possible, the user must issue different delivery challans against the invoice depending on the different Transporter ID. This will also present a problem in entering the data in the GSTR-1.
The term “value of consignment of goods” means:
1. The total invoice value* exceeds Rs. 50,000 OR
2. If a vehicle transports goods for numerous invoices, the total invoice value* exceeds Rs. 50,000.
Whether the supplier is the transporter or not is a factor here. If he is the transporter, he must generate an e-way bill for all invoices; if he is not, the transporter must generate an e-way bill for all invoices in the Vehicle.
“CKD/SKD” means the movement of the goods in Semi Knocked Down conditions or completely knocked down conditions.