E-Way Bill - What is E-Way Bill? E-Way Bill System, Rules & Process?

Introduction

Proper documentation is a must to move goods across India to ensure GST compliance.

The e-way bill system has changed the way in which businesses move their consignments. Manual paperwork is now a thing of the past, replaced by a simplified digital process.

There are several ways to generate a web portal, SMS, mobile app, and API integration. So, depending on your operation, you have the flexibility to choose the method.

If you run a small business or manage logistics on a large scale, knowing the e-way bill requirements is crucial for smooth operations and avoiding penalties.

What is an E-Way Bill?

An E-Way Bill under GST is an electronic document that is required to be generated for the transportation of goods above ₹ 50,000.

You have to generate it on the E-Way Bill Portal before you can move the goods in any vehicle above this value threshold.

Apart from web-based generation, E-Way Bill can be generated or cancelled via different modes such as SMS, Android App, and API integration for seamless site-to-site data transfer. This will ensure that all parties are using the correct GSTIN.

Once the bill is generated, an EBN or E-Way Bill Number (EBN) will be assigned which is very important for the receiver, supplier and transporter. It is a reference document for all those involved in the movement of the goods.

What are the Components of an E-Way Bill?

Form GST EWB-01 is a two-part e-way bill which captures specific information for the movement of goods.

Part A is filled by the person causing goods movement, typically the supplier or recipient. This section captures invoice and goods details before transportation begins.

Part B contains vehicle and transporter information, filled in by the transporter once goods are handed over. If the supplier arranges their own transport, they complete both parts.

Businesses with a turnover above ₹5 crore must provide six-digit HSN codes. Those below this threshold can use four-digit codes.

Also read:

When Should an E-Way Bill be Issued?

Generate an e-way bill when the consignment value exceeds ₹50,000. This applies to movement for supply, returns, transfers, or any business purpose.

An E-Way bill is required for the following circumstances:

1. Value More than ₹ 50,000: For goods above ₹50,000, an e-Way bill needs to be generated. This enables the transit of the goods to be tracked and recorded accurately, thereby enhancing transparency and ensuring regulatory compliance.
2. Supplier is not GST Registered, but the Receiver is GST Registered: In cases where the supplier is not a GST registered dealer, but the recipient is a GST registered dealer, it becomes the responsibility of the GST registered party to ensure compliance with the e-Way bill requirement.
3. Supplier not generating e-Way Bill: If the supplier has not generated the e-Way Bill, the transporter has to generate the e-Way Bill.

Who is required to generate an e-way bill?

This section details the responsibilities for the generation of the E-Way Bill. If you’re a registered business, an unregistered transporter, or a recipient of goods, it’s important to know who is supposed to create this document for GST purposes

Registered Person

• Must generate an E-Way Bill for transport of goods over ₹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 recipient, the recipient must ensure compliance.

Transporter

• Must generate an E-Way Bill if it has not been generated by the consignor (supplier) or consignee (recipient).
• Required to generate an e-way bill if the consignment value exceeds ₹50,000 and no party has generated it.
• They need to use Form GST EWB-02 for consolidated E-Way Bills.

When is E-Way Bill Not Required?

• When goods are transported by a non-motorised conveyance
• 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 the 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 the 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 the Schedule to Central Tax Rate notifications.

What are State-wise E-Way Bill Rules and Limits?

• While inter-state transportation requires an e-way bill above ₹50,000, state-specific rules & limits may apply for intra-state movement.
• It is advisable to check the relevant state GST portal for latest rules & limits.

How to Generate an E-Way Bill on the Portal?

Visit the e-way bill portal and log in with your credentials. First-time users must register using their GSTIN.

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 left side of the dashboard, 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.

How to Generate E-Way Bill via SMS?

SMS-based generation offers convenience for areas with limited internet connectivity. Activate this feature by registering your mobile number on the portal.

SMS Format:

EWBG [GSTIN] [Recipient GSTIN] [Delivery Place] [Invoice Number] [Invoice Date] [Value] [HSN] [Transport Mode] [Vehicle Number]

Send to the designated number provided by the portal. The system responds with the generated EBN. Transporters can update vehicle numbers through SMS using specific codes for quick updates during transit.

What is the Time Limit to Generate an E-Way Bill?

From 1st January 2025, generate e-way bills only for documents dated within 180 days. Documents older than this are ineligible. For example, from January 2025, invoices dated before early July 2024 cannot be used for bill generation.

This ensures documentation remains current. Generate bills close to dispatch time to maximise validity and reduce extension needs. The official portal displays error messages for documents exceeding this E-Way Bill limit.

What is the Validity of the E-Way Bill?

Validity depends on distance and cargo type, starting from the generation time.

Extension Rules:

• Request extensions eight hours before or within eight hours after expiry
• From 1st January 2025, extensions cannot exceed 360 days from the original generation
• Example: Bill generated on 1st January 2025 can extend only until 25th December 2025

Validity expires at midnight on the last valid day. Plan transportation carefully, factoring in potential delays.

What Documents are Required for E-Way Bill?

Road Transport:

• Tax invoice or bill of supply
• Transporter ID or vehicle number
• Delivery challan (for non-supply movements)

Rail, Air, Ship Transport:

• Tax invoice or bill of supply
• Transporter ID
• Transport document number (railway receipt, airway bill, or bill of lading)
• Transport document date