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How To Generate an E-Way Bill

The implementation of GST in India has brought significant changes to the taxation system, one of which is the introduction of e-way bills when transporting goods inter or intra-state. In this complete guide to e-way bills, we will discuss the key aspects of e-way bills, including the following:

  • What is an E-Way Bill?
  • Format of an E-Way Bill
  • When to generate an E-way bill?
  • How to generate an E-way bill?
  • Who should generate an E-way bill?
  • Documents required to generate an E-way bill
  • Validity of an E-way bill
  • Situations when an E-way bill is exempted
  • Implementation of E-way bill across India
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    What is an E-Way Bill?

    An E-Way Bill is a mandatory document that all transporters need to carry when they are transporting goods with a value greater than ₹50,000. The transport can be inter-state or intra-state. E-Way bills contain details of the goods being transported, the consignor, the recipient as well as the transporter.

    Certain updates have been made to the above rules, as follows:

    • For intra-state transport within the states of Delhi, Tamil Nadu and West Bengal, E-Way bills are required only when the value of the goods being transported is more than ₹1 lakh.
    • Additionally in Delhi, an E-Way bill is not required when the seller of the goods is a GST registered person but the buyer is not, as long as both parties are in Delhi.

    Format of an E-Way Bill

    An E-Way Bill is divided into 2 parts – Part A and Part B. Both these parts contain information that needs to be entered by the person generating the E-way bill.

    The following details are required in Part A:

    • GSTIN of Recipient
    • Place of Delivery
    • Invoice or Challan Number
    • Invoice or Challan Date
    • Value of the Goods
    • HSN Code
    • Reason for transportation
    • Transport Number and Name
    • Transport Document Number and Date

    Part B only contains the registration number of the vehicle transporting the goods.

    Apart from the above, there is also information that is auto-generated at the time of generating e-way bills. These details are:

    • E-Way Bill Number
    • E-Way Bill Date
    • Name of the Party Who Generated the E-Way Bill

    When to Generate an E-way Bill?

    A valid E-Way bill with all the required details mentioned above must be generated for the following events:

    • When goods are being supplied
    • When goods are being transacted on a non-supply basis, for example:
      • Import/export
      • Goods being returned
      • Job Work
      • Line Sales
      • Sale based on approval
      • Goods being supplied in a semi knocked down or completely knocked down state
      • Goods being supplied for trade exhibitions, fairs etc.
      • Goods being used for personal consumption

    Who Needs to Generate an E-way bill?

    The following situations necessitate the generation of an E-way bill by a person who has a GST registration and is undertaking the transportation of goods:

    • One of the consignor, the consignee, the recipient or the transporter should generate an e-way bill, if the transport is being done through their own or hired means.
    • In cases where an unregistered seller is supplying goods to a registered buyer, the buyer is responsible for ensuring that all requirements are met.
    • If both, the supplier and the buyer, have failed to generate an e-way bill, the transporter must do so to move the products by land, rail, water and air.

    In the two cases mentioned below, an e-way bill is required even if the consignment value does not exceed ₹50,000:

    • An intra-state transport of goods from from a Principal to a Job Worker
    • An inter-state transfer of handicraft goods by a supplier who has been granted exemption from GST registration.

    How to Generate an E-way Bill?

    The following methods are available to the supplier or the carrier for creating the E-way bill:

    • Generating E-Way Bills on the GSTN
    • Generating E-Way Bills through SMS
    • Generating E-Way Bills through E-Invoicing
    • Generating E-Way Bills automatically using an E-Way Bill Software

    The GST E-Way Portal allows for the creation of e-way bills. You must be registered as a transporter and under GST to utilise the platform.

    Once the e-way bill is generated, the e-way bill number is provided to all parties: the recipient, the supplier and the transporter.

    Form GST EWB-01

    Form GST EWB-01 is the document that needs to be carried by the transporter moving goods worth more than ₹50,000. Information regarding who needs to fill the form and when are provided below:

    No. Who needs to fill? When to fill? Which part to fill?
    1 Registered Person Before transfer of goods Part A
    2 Registered Person i.e. supplier or recipient. The transport vehicle can be either owned or hired. Before transfer of goods Part B
    3 Registered Person i.e. supplier or recipient when the goods are handed over to the transporter Before transfer of goods Part B
    4 Transporter of goods Before transfer of goods Part A
    5 Unregistered Person if the recipient is GST registered If transport is by air, sea or rail Part A

    To know more, you can read our detailed guide to  how to generate an e-way bill .

    Documents Required to Generate an E-way Bill

    Documents needed to generate an e-way bill are:

    • Relevant invoice, bill of supply, or challan for the shipment of goods.
    • If a mode of road transport is involved, the vehicle number or the  transporter ID .
    • Transporter ID, Transport document number, and date—whether by ship, rail, or air.

    Validity of an E-way bill

    An e-way bill’s validity is determined by its generated date and time. Based on the distance the items have travelled, an e-way bill is valid for the duration specified below:

    1. If the type of conveyance is other than over-dimensional cargo and the distance is-
      1. Less than 200 km, the e-way bill will be valid for one day
      2. For every additional 200 km or part there forth, the e-way bill will be valid for one additional day.
    2. If the type of conveyance is for over-dimensional cargo and the distance is-
      1. Less than 20 km, the e-way bill will be valid for one day
      2. For every additional 20 km or part there forth, the e-way bill will be valid for an additional one day. 

    The validity of an e-way bill may also be extended.  To extend the validity  of an e-way bill, the generator must do so either eight hours before or eight hours after the bill’s expiration.

    Situations When an E-way Bill is Exempted

    An e-way bill is not required in the following situations:

    • Petroleum gas that has been liquefied for delivery to consumers who fall under the NDEC’s non-domestic exempted category;
    • Kerosene sold with a PDS;
    • Postal luggage moved by the Postal Service;
    • Precious or semi-valuable stones, natural or cultured pearls, precious metals, and metals plated with precious metals;
    • Jewellery, goods made of gold or silver, and other items;
    • Currency;
    • Used domestic and personal items;
    • Coral, both worked and unworked
    • E-way bills are not necessary for transporting goods to an inland container depot or a container freight station for customs clearance from a customs port, airport, air cargo complex, or land customs station.
    • E-way bill generation is unnecessary when goods are transported by non-motorized transportation.
    • Alcohol intended for human consumption, petroleum crude, high-speed diesel, petrol, fuel for an aircraft turbine;
    • Under customs bond from an inland container depot or container freight station to a customs port, airport, air cargo complex, and land customs station, or one customs station or customs port to another customs station or customs port;
    • Where certain notifications exempt the transported items from paying taxes;
    • No E-way bill is necessary when the Central Government, State Government, or local government acting as a consignor transports goods by rail.
    • There is no need for an E-way bill where a defence formation acting on behalf of the Ministry of Defence is the consignor or consignee.
    • In the case of transporting empty freight containers, an E-way bill is not necessary.
    • E-way bill generation is unnecessary when items are being transported for weighing, and the distance between the consignor’s business and the weighbridge is less than 20 km. However, a delivery challan is required to be present while moving items.
    • Other than for the transportation of de-oiled cake, the items listed in the schedule annexe to Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 do not require the generation of an e-way bill.

    Implementation of E-way Bill Across India

    Since its implementation started on 1 April 2018, there has been an increase in the production of e-way bills for interstate-transit commodities. With all States and Union Territories joining the league in the generation of e-way bills for the movement of products inside the State/UT, the  state-by-state deployment of the e-way bill system  has had a good response.

    However, several states have given their citizens respite by exempting them from the creation of e-way bills if their financial constraints fall below a threshold amount or in the case of specific designated things. For instance, Tamil Nadu has exempted its residents from generating e-way bills if the item’s price is less than Rs. 1 lakh.

    Conclusion

    E-way bill is a document used to track the movement of goods, prevent tax evasion, and guarantee that commodities being transported adhere to the GST Law. Since the advent of e-way bills, documenting transactions has become much more streamlined.

    There are multiple ways to generate e-way bills, but the fastest and most convenient way is to use an e-way bill generation software like BUSY. After a quick one-time setup, you can auto-generate e-way bills in just a few clicks, even when you need to generate them in bulk.

    Vineet Goyal
    Chartered Accountant
    MRN No.: 411502
    City: Delhi

    I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.

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