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

Introduction

Moving goods across India requires proper documentation to ensure GST compliance.

The e-way bill system has transformed how businesses transport consignments, replacing manual paperwork with a streamlined digital process.

The system supports multiple generation methods web portal, SMS, mobile app, and API integration allowing flexibility based on your operational needs.

Whether you operate a small business or manage large-scale logistics, understanding e-way bill requirements helps maintain smooth operations and avoid penalties.

What is an E-Way Bill?

An E-Way Bill is an electronic document required for transporting goods worth more than INR 50,000. It must be generated on the E-Way Bill Portal before you can transport the goods in any vehicle exceeding this value threshold.

In addition to web-based generation, the E-Way Bill can be created or cancelled through various methods, such as SMS, an Android App, and API integration, for seamless site-to-site data transfer. This ensures that all parties use the correct GSTIN. It is important to verify the GSTIN using the GST search tool provided on the portal.

Upon generation of the bill, the EBN or E-Way Bill Number (EBN) will be assigned, which is very important for the recipient, supplier, and transporter. It serves as a reference for all parties involved in the movement of the goods.

What are the Components of an E-Way Bill?

The e-way bill consists of two parts in Form GST EWB-01, each capturing specific information for goods movement.

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 by the transporter once goods are handed over. If the supplier arranges their own transport, they complete both parts.

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

When Should 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.

Here are the circumstances when an E-Way bill is required:

1. Value Exceeds Rs. 50,000: For goods valued at over Rs. 50,000, generating an e-Way bill is imperative. This process ensures meticulous tracking and documentation of the goods' movement, enhancing transparency and regulatory compliance.
2. Supplier Not GST-Registered, Receiver GST-Registered: In cases where the supplier lacks GST registration but the recipient holds GST registration, it becomes the responsibility of the GST-registered party to ensure adherence to the e-Way bill requirement.
3. Unavailability of e-Way Bill by Supplier: When the supplier has yet to generate the e-Way bill, the onus falls on the transporter to create one. It holds, regardless of the chosen mode of transportation, streamlining the documentation process.

Who Should Generate an E-Way Bill?

This section outlines the responsibilities regarding the generation of an E-Way Bill. Whether you are a registered business, an unregistered transporter, or a recipient of goods, understanding who must generate this document is important for compliance with GST regulations.

Registered Person

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

Transporter

• Must generate an E-Way Bill if the supplier has not.
• May opt not to generate if individual consignment values are below INR 50,000 but the overall value exceeds INR 50,000.
• They need to use Form GST EWB-02 for consolidated E-Way Bills.

When is E-Way Bill Not Required?

• The non-motor vehicle is the mode of transport.
• 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 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 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 Schedule to Central Tax Rate notifications.

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

States set varying thresholds for intra-state goods movement. Inter-state transport requires bills above ₹50,000, but states determine their own limits for within-state transportation.

How to Generate E-Way Bill on 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 dashboard's left side, 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 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 limit.

What is the Validity of E-Way Bill?

Validity depends on distance and cargo type, starting from 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 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

Keep all supporting documents accessible during transit. Authorities may request additional documentation during inspections.