E-way Bills for Imports and Exports
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What Import and Export Transactions are E-way Bills Applicable to?
As import is classified as an interstate transaction, it is important to consider the relevance of e-way bills to such transactions. Therefore, let us explore the circumstances in which these bills are applicable and must be generated.
Stages of Import and Export Procedures
Import and export of goods involve multiple steps that businesses must follow carefully. Here are the main stages:
Import Process:
- Placing the Order – The importer places an order and receives a commercial invoice from the overseas supplier.
- Filing Bill of Entry – A Bill of Entry is filed with customs to begin the clearance process.
- Customs Clearance – The goods arrive at the port or Inland Container Depot (ICD) and go through inspection, valuation, and duty payment.
- Generating E-way Bill – After customs clearance, the importer generates an e-way bill to transport the goods to their business location.
- Receiving the Goods – Once delivered, the importer can claim Input Tax Credit (ITC) on IGST paid at the time of import.
Export Process:
- Receiving the Order – The exporter receives a confirmed order and prepares the necessary commercial invoice and packing list.
- Filing LUT or Paying IGST – The exporter files a Letter of Undertaking (LUT) to export without paying tax or pays IGST to claim a refund later.
- Shipping Bill Filing – A shipping bill is filed online for customs processing.
- Customs Clearance and Stuffing – Goods are examined and cleared by customs before being sealed for export.
- Generating E-way Bill – The exporter creates an e-way bill to move goods from their warehouse or factory to the port.
The process of Exporting includes:
Generating an e-way bill for export is necessary for transporting goods from a business location to an exporter’s warehouse. However, when these goods are subsequently moved to an ICD or a CFS, no export e-way bill is required. It should be noted that certain items such as petrol, diesel, and kerosene are exempt from e-way bill generation.
Additionally, GST e-way bills are not required in the following situations:
- When goods are transported to or from Nepal/Bhutan
- When goods are moved between custom ports/ICDs or CFS.
The following table shows depicts when generating an e-way bill is required and not in the case of import and export:
| E-Way Bill Required | E-Way Bill Not Required | |
|---|---|---|
| Import | Movement of goods from ICD or CFS or warehouse to factory or importer’s business location | 1. Inward entry at Customs port 2. Movement of goods from port to ICD/CFS 3. Movement of goods from ICD/CFS to warehouse |
| Export | Movement of goods from exporter’s business place to ICD/CFS/Warehouse | 1. Movement of goods from ICD/CFS to port /warehouse. 2. Movement of goods from one port/station to another port/station |
How Can an E-way Bill for Imports and Exports be Generated?
Whether it is an import or an export transaction, the process and methods for generating the e-way bill remain the same. However, the user needs to be mindful of the following important information while creating an e-way bill in such cases:
Validity of E-way Bills in Import and Export
Understanding how e-way bill validity works is important in both import and export movements.
For Imports (ICD or Port to Importer’s Location):
- The e-way bill is generated after customs clearance is completed.
- The validity period starts from the time of e-way bill generation.
- Validity rules:
- 1 day for every 200 km for standard vehicles.
- 1 day for every 20 km for Over Dimensional Cargo (ODC).
- Example: If goods are transported from ICD to the importer’s warehouse over 600 km, the e-way bill is valid for 3 days.
For Exports (Warehouse to Port):
- The exporter must generate an e-way bill before dispatching goods to the port.
- Validity is based on the distance between the exporter’s premises and the port.
- The same rules apply as for imports (200 km = 1 day for standard cargo).
- The e-way bill must be valid until the goods reach the customs area at the port.
Note: No e-way bill is required for movement within customs areas (e.g., from port to customs yard or from port to the ship). If the goods are moved after expiry of the e-way bill, penalties may apply.
| Particulars In E-Way Bill | Import | Export |
|---|---|---|
| Transaction sub-type to select | Import | Export |
| Document Type and Number | Bill Of Entry | Tax invoice meant for export of goods. |
| Bill From | Unregistered Person (URP) | Exporter’s Detail (Name, GSTIN, etc.) |
| Bill From | Unregistered Person (URP) | Exporter’s Detail (Name, GSTIN, etc.) |
| Dispatch From | Pin Code 999999 must be input, and ‘Other Country’ must be selected in the state field. | Address Of Expoter’s Place of Business/Warehouse |
| Bill To | Importer’s Details (name, GSTIN, etc.) | A person outside India who may be unregistered (Mention URP). |
| Ship To | Address of the warehouse or business of the importer | Pin Code 999999 has to be entered and selected in the state column ‘Other Countries. |
| Transportation Details | Transporter Specifications (Vehicle Details, Transporter ID, etc.) | Transporter Specifications (vehicle details, transporter ID etc.). |
A key element in determining the validity of an e-way bill is calculating the distance to be travelled. Knowing the starting point for distance calculation is essential to determine its legality in import and export scenarios accurately.
- When importing, the e-way bill must be generated when the goods are approved for domestic use. The distance between the ICD and the importer’s place of business must be assessed, and the validity of the e-way bill must be determined accordingly.
- If the items are being exported, the e-way bill must be generated when transported to the port. The distance shall be determined from the warehouse/place of business to the port for the purpose of e-way bill validity.
Do High Seas Sales Require an E-way Bill?
As the high sea sale occurs outside the Indian territory and does not fall under any of the above cases, generating an e-way bill is not required. The government aims to reduce the compliance burden on businesses engaged in international trade. Importers and exports and streamline the process by ensuring that all other relevant documents, such as shipping documents and bills of entry, are in order and valid e-way bills are available when necessary.
Key Points and Best Practices for E-way Bill Generation
Generating an E-Way Bill accurately is crucial for smooth goods transportation and GST compliance. Here are the key points and best practices every business should follow:
- Verify Consignment Value: E-Way Bill is mandatory if the value of goods exceeds ₹50,000. For inter-state movement, it’s compulsory regardless of the amount (except in exempt cases).
- Fill Both Parts Correctly:
- Part A contains invoice details, HSN code, GSTIN, and consignment value.
- Part B includes transport details like vehicle number or transporter ID.
- Use Correct HSN Codes: Mistakes in HSN can cause mismatch with invoices and invite penalties.
- Update Vehicle Number During Transit: If transhipment occurs or a vehicle is changed mid-way, Part B must be updated immediately to maintain validity.
- Avoid Expired E-Way Bills: Each e-Way Bill has a limited validity depending on the distance. Make sure goods reach their destination within that time frame or file for an extension if necessary.
- Document Consistency: Ensure that the details in the e-Way Bill match the invoice and delivery challan. Discrepancies may lead to detention of goods.
- Maintain Digital Records: Keep digital copies of generated E-Way Bills for future audit or verification.
- Use Accounting Software: Using GST accounting software like BUSY helps you auto-generate e-Way Bills from invoices, reducing manual errors and saving time.
Conclusion
E-way bills are essential to the import and export process, providing a reliable way to track goods as they move across different locations. By generating e-way bills accurately and in a timely manner, businesses can ensure compliance with legal regulations, streamline their operations, and enhance overall efficiency. As e-way bills are progressively improving, it is important for businesses engaged in international trade to stay informed and updated on any changes or new requirements to maximise their benefits and avoid potential pitfalls.
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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.
Frequently Asked Questions
- What is an e-Way Bill, and why is it required for imports and exports?An e-Way Bill is an electronic document required to transport goods in India. It tracks the movement of goods and prevents tax evasion. For imports and exports, it ensures compliance with local laws and verifies that all goods entering or leaving the country have the necessary documentation.
- Who is responsible for generating an e-Way Bill for imported goods?For imported goods, generating an e-Way Bill typically involves the importer or the transporter moving the goods from the port to the destination. They must create it before transporting goods worth over the specified threshold within India.
- Is an e-Way Bill required for exports to foreign countries?No, an e-Way Bill is not required for direct exports to foreign countries. However, as per local transport regulations, an e-Way Bill may be needed to move export goods within India to the port or airport where the export will take place.
- What details are required to generate an e-Way Bill for imports?To generate an e-Way Bill for imports the importer’s GSTIN, invoice or bill of entry, item description, quantity, value, transporter details, and the vehicle number are needed. These details ensure compliance and accurate tracking during internal transport.
- How is an e-Way Bill generated for imports?An e-Way Bill is generated on the government’s e-Way Bill portal by entering the required details such as the invoice, transporter information, and vehicle number. After submission, the portal provides an e-Way Bill number, which accompanies the goods during transport.
- What is the validity period of an e-Way Bill for imported goods?The e-Way Bill’s validity depends on the distance to be covered within India: typically, one day for every 100 kilometers. This validity period begins once the goods are moved, and timely delivery and compliance with movement regulations are ensured.
