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e-Way Bill

What is an e-Way Bill?

An e-way bill is an electronic document required for the movement of goods valued above a specified limit. e-Way bill generation is a compliance requirement. The person causing the movement of goods must upload relevant information and generate an e-way bill on the GST portal before transporting the goods. The movement of goods could be for supply or reasons other than supply; an e-way bill is a must according to Rule 138 of CGST Rules.

e-Way Bill New Rules | Latest Notifications 

  • e-Invoice Details Mandatory for e-Way Bill Generation

From 1 March 2024, e-Way generation will not be allowed without e-invoice details for all applicable taxpayers. This new regulation applies to all B2B and export transactions. For B2C and other non-supply related transactions, this new eway bill rule is not applicable. 

  • 6 digit HSN Code Must for all the B2B and Export Transactions

Starting 1st February 2024, all taxpayers with annual turnover over Rs.5 Crores must provide at least 6 digit HSN codes while generating e-way bills for all B2B and Export transactions. Those with a turnover less than Rs.5 Crore must provide 4 digit HSN Code.

When was e-Way Billing Introduced?

The e-way bill system for inter-state movement of goods began on April 1, 2018, across India. However, for intra-state goods movement, the e-way bill requirements were determined by individual state governments and implemented at various times in 2018. As a result, an e-way bill is now necessary for both inter-state and intra-state transportation of goods exceeding specific values. While the limit for inter-state movement remains consistent, different states have opted for varying thresholds for intra-state goods transport. We will discuss them in detail in the next section.

Purpose of e-Way Billing

  • e-Way billing was introduced under the GST regime to bring transparency and traceability to the movement of goods.
  • Facilitation of faster movement of goods, improving truck turnaround times.
  • Supports the logistics industry by enabling longer distances, reduced travel time, and lowered costs.
  • Eliminates wait times at checkposts and speeds up the movement of goods, leading to the most efficient utilisation of vehicles and resources.
  • Ensures compliance with GST laws, monitors goods movement, and helps prevent tax evasion from the department’s perspective.

When is an e-way Bill Required?

e-Way Bill Requirement for Inter-State Movement of Goods

An e-way bill is required only when the consignment value exceeds Rs.50,000 for state-to-state or inter-state movement of goods in a motorised vehicle. This means, if you’re carrying goods worth less than Rs.50,000, you don’t have to generate an eway bill. However, you must carry relevant documents like sales invoices, delivery challans, debit notes, credit notes or other related documents when an e-way bill is not required.

e-Way Bill Requirement for Intra-State Movement of Goods

For intra-state movement or within the state movement of goods, the respective state governments have decided the thresholds. Each state has a different threshold to generate e-way bills, and there are a few exemptions for certain goods and services. For detailed information on e-way bill limits in different states.

When is an e-Way Bill Not Required | e-Way Bill Exemptions

When is an e-way bill not required

e-Way bill is not required for the transport of some specific goods as listed below: 

    • Liquefied petroleum gas being transported for the purpose of household and non-domestic exempted categories
    • Kerosene sold under PDS
    • Postal baggage transported by the postal department
    • Pearls, precious or semi-precious stones, precious metals 
    • Jewellery and other articles 
    • Currency
    • Used personal and household items
    • Coralse-Way is not required when using a non-motorised vehicle for transportation

e-Way bill is also not required if the 

    • Goods are transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by customs.
    • Goods are transported under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station or from one customs station or customs port to another customs station or customs port. 
    • Goods are transported from or to Nepal or Bhutan

e-Way bill is not required for the movement of goods within such areas as notified by respective states

e-Way bill is not required when transporting

    • Alcoholic liquor for human consumption
    • Petroleum crude oil
    • High speed dieselPetrol
    • Natural gas 
    • Aviation turbine fuel

e-Way bill is also not required if the 

    • Movement of goods is caused by the Ministry of Defence or Central Government, State Government, or any local authority as a consignor or consignee.
    • When transporting empty cargo containers, empty LPG gas cylinders. 

Who Should Generate e-Way Bill?

  • Registered Individual – either the consignor, consignee, transporter, or receiver, if the transportation is being done in own or hired vehicle or by railways, air or by ship. 
  • Transporter – When the goods are handed over to him for transportation by road. In such cases, the transporter needs to update Part B of the e-way bill, while Part A details need to be furnished by a registered person. 
    • The transporter can also generate Part-A after getting authorisation from the consigner or consignee for the same.
    • If goods are moved within a State or Union Territory, covering a distance of up to 50 KM, from the consignor’s business place to the transporter’s location for subsequent transportation, the supplier, recipient, or transporter may not need to provide conveyance details in Part-B of FORM GST EWB-01.
  • Job Worker –  If goods are dispatched from a principal in one state to a job-worker in any other state, the e-Way Bill must be created by either the principal or the job worker, if they are registered, regardless of the consignment’s value.

Similarly, when handicraft goods move from one state to another by an individual exempt from registration, that person must generate the e-Way Bill, irrespective of the consignment’s value.

State-Wise e-Way Bill Limits

e-Way Bill Limit for Inter-State Movement

The central government has fixed the e-way bill limit for inter-state or state-to-state movement of goods as per the CGST Rules. As per the recent update, both registered and unregistered transporters are required to carry an e-way bill while transporting goods worth more than Rs.50,000 between the states in a motorised vehicle.

The e-Way Bill provisions for inter-state supplies were implemented across India from 1st April 2018.

e-Way Bill Limit for Intra-State Movement

While the central government made the e-way bill requirement for inter-state movement of goods, the decision to implement the mandatory e-way bill for movement within the state was left to the respective state governments.

Many states in India have made it mandatory to generate e-way bills for the movement of goods worth more than Rs.50,000 within the state. Each state has implemented the e-Way Bill system for intra-state movement of goods at different times. While most states have kept the eway bill limit at Rs.50,000, a few states had a different eway bill threshold.

e-Way Bill Registration on e-Way Bill Portal

The process for e-Way Bill registration on the e-Way Bill portal involves the following steps:

  • Visit the official e-Way Bill portal at ewaybillgst.gov.in/ 
  • Click on the ‘Registration’ tab and choose ‘E-Way Bill Registration’
  • In the ‘e-Way Bill Registration Form’, fill in the required details 
  • Verify the provided information through OTP sent to the registered mobile number and email ID.
  • Set up a username and password for login credentials.
  • After successful registration, log in to the portal using the created credentials.
  • Once logged in, users can generate, modify, or cancel e-Way Bills based on their role.

e-Way Bill Generation on e-Way Bill Portal

Once registered on the e-way bill portal, you can use the username and password to login to the eway bill portal and generate eway bills. You must have the following documents to generate an eway bill.

  • The tax invoice or bill of sale or delivery challan 
  • Transporter Id of the person who is delivering the consignment or 
  • Vehicle number of the vehicle carrying the consignment.

Penalty for Non-Generation of e-Way Bill

If e-way bill isn’t issued according to Rule 138 of the CGST Rules, it’s considered a violation of the rules. Section 122 of the CGST Act states that a taxable person moving taxable goods without the required documents including e-way bill will face a penalty of Rs.10,000 or the evaded tax amount, whichever is higher.

Section 129 of the CGST Act mentions that if anyone transports or stores goods in transit against the Act’s provisions or its rules, those goods, the transportation used, and related documents can be detained or seized.

e-Way Bill Enforcement | Who Will Check e-Way Bills

The Commissioner or an authorized officer can instruct any officer to stop any vehicle to check its e-way bill or e-way bill number for both interstate and intrastate movements of goods. Physical inspections of vehicles can also be conducted by the appropriate officer as authorized by the Commissioner. If there’s specific information about tax evasion, any officer, with the necessary approval, can perform a physical inspection of a particular vehicle.

After inspecting goods in transit, the proper officer must file an online summary report (Part-A of FORM GST EWB-03) within 24 hours, and the final report (Part-B of FORM GST EWB-03) within 3 days of the inspection.

Once a physical verification of goods on a vehicle has been conducted in a state or another state, there won’t be another verification unless there’s new specific information related to tax evasion.

If a vehicle is detained for over 30 minutes, the transporter can upload this information using FORM GST EWB-04 on the common portal.

Penalty for Minor Errors

Minor errors in e-Way bills like the ones mentioned below won’t lead to confiscation or proceedings under Section 129 of the CGST Act.

  1. Spelling mistakes in the consignor or consignee’s name, as long as the GSTIN is correct.
  2. Error in the PIN code, provided that the consignor and consignee addresses are accurate and the PIN code error doesn’t extend the e-way bill’s validity.
  3. Minor errors in the consignee’s address that don’t alter the locality or other crucial details.
  4. Errors in 1 or 2 digits of the document number on the e-Way Bill.
  5. Errors in the 4 or 6-digit level of HSN, given that the first 2 digits of the HSN are accurate and the tax rate mentioned is correct.
  6. Errors in 1 or 2 digits/characters of the vehicle number.

For these situations, penalties of Rs.500 each under Section 125 of the CGST Act and the respective State GST Act Rs.1,000 under the IGST Act can be imposed for every consignment. Confiscation won’t occur for these minor typographical mistakes.

e-Way Bill Validity

The validity of an e-Way Bill is determined by the distance the goods are traveling. Here’s how it works:

For non Over Dimensional Cargo (ODC):

  • If the distance is less than 200 KM, the e-Way Bill is valid for one day from the generation date.
  • For every additional 200 KM or part thereof, the validity extends by one day from the generation date.

For ODC or multimodal shipment involving at least one leg by ship:

  • If the distance is less than 20 KM, the e-Way Bill is valid for one day from the generation date.
  • For every additional 20 KM or part thereof, the validity extends by one day from the generation date.
  • The ‘relevant date’ is the e-way bill generation date, and the validity period starts from that moment. Each day is counted until midnight of the following day after e-Way Bill generation.

If, due to exceptional circumstances like transshipment, the goods cannot be transported within the e-Way Bill’s validity period, the transporter can extend it by updating details in Part-B of FORM GST EWB-01 within 8 hours from its expiry.

Additionally, the Commissioner may extend the validity period via notification for specified categories of goods.

FAQs on e-Way Bill

What is the use of e-way bill?

The e-way bill is for tracking the movement of goods worth over specified amounts across states borders.

What are the benefits of e-way bill?

It simplifies and tracks the movement of goods, reducing tax evasion and ensuring compliance.

What is the distance limit for e-way bill?

It varies based on cargo type. Generally, for non-ODC, it's 200 KM or part thereof.

Is e-way bill required within 50 KM?

No, it's not required for distances less than 50 KM.

Is e-way bill required for transport by train?

When goods are transported via rail, there's no need to carry the e-way bill alongside the goods. However, the in charge of the conveyance (railways) must carry the invoice, delivery challan, or bill of supply, as applicable, along with the goods.

Can we generate e-way bill without a vehicle number?

Yes, an e-way bill can be generated without a vehicle number and updated later.

What is the difference between GST bill and e-way bill?

A GST bill details the transaction, while an e-way bill tracks the movement of goods.

What is the validity of e-way bill?

For distances under 200KM, it's one day from generation, extending by one day for every additional 200KM.

How do I generate an e-way bill from my phone?

Using the e-way bill mobile app or the official portal.

How do I log into e-way bill for the first time?

Use your GSTIN to register and create a username and password.

How do I generate an e-way bill by SMS?

Send a specific format SMS to the designated number.

How do I extend my e-way bill validity?

Update the details in Part-B of FORM GST EWB-01 within 8 hours of expiry.

What is 2-factor authentication in e-way bill?

A security measure requiring two forms of verification for e-way bill generation.

Can we generate e-way bill for non-GST customers?

Yes, an e-way bill can be generated for both GST and non-GST customers.

How do I upload an e-way bill on the portal?

Log in, go to the 'Generate EWB' section, fill in the details, and upload.

What is the validity of an e-way bill for 300KM?

It would be 2 days from the date of generation.

What is the minimum distance required for an e-way bill?

There's no minimum distance; it depends on the value and type of goods.

Is an e-way bill mandatory for below Rs.50,000?

No, it's not mandatory for goods worth less than Rs.50,000.

What is exempt from e-way bill?

Certain goods specified under rules and notifications might be exempt.

Is an e-way bill compulsory?

Yes, for the movement of goods over the prescribed limit.

In which cases is an e-way bill not required?

For specific exempted goods or distances below the stipulated limit.

Where is an e-way bill required?

Primarily for the inter and intrastate movement of goods above the defined value.

What documents are required for distances less than 50 km?

No e-way bill is required for distances below 50 km. However, the in charge of the conveyance must carry the invoice, delivery challan, or bill of supply, as applicable.

What is the penalty for not taking an e-way bill?

Penalties vary, but it can include fines and the detention of goods.

What is the disadvantage of an e-way bill?

Complexity in generating and managing eway bills is a drawback. This can be eliminated by using reliable e-way billing software.

Know more about E-Way Bill