Eway Bill: The Ultimate Digital Passport for Movement of Goods

Eway bill serves as the ultimate digital passport for goods in transit across India. It’s more than just paperwork; it’s an assurance that keeps check on tax regulations and transparency in the movement of goods. In this guide, let’s delve deeper into the world of the Eway bill and understand the intricacies involved in its generation and implementation.

What is Eway Bill?

The Eway bill is an electronic document that is required when transporting goods worth more than ₹50,000 within India. It is generated by GST-registered transporters using the Eway bill portal. This bill helps ensure compliance with the GST regulations by tracking the movement of goods. It contains important information such as the starting point, destination, transporter details, and the goods being transported. It is mandatory for both inter-state and intra-state transportation, and the person in charge of the goods must carry the Eway bill with them.

Why Is the Eway Bill Important?

• Eway bill ensures documentation of the movement of goods, thus reducing tax evasion and ensuring that all goods transported within and across states are accounted for under the GST framework.
• Ensures that every high-value consignment is reported, making it difficult for businesses to transport goods without paying the applicable GST.
• Reduces the chances of corruption and fraud at checkpoints due to the digitalised recording of goods’ movement. 
• Enhances the overall efficiency of the logistics sector and results in lower transportation costs and improved service levels.

What is Eway Bill Limit?

What is the Requirement for Eway Bill?

An Eway Bill is required when goods that are worth more than ₹50,000 are transported in a vehicle. This applies in the following situations:

• Supply of goods including sales, branch transfers, or exchanges/barters.
• Non-supply reasons such as returning goods.
• Goods from an Unregistered Person (someone not registered under GST).

Eway bill that needs to be generated for goods that are even below INR 50,000: 

• Inter-state movement for job work including inputs sent from principal to job worker. 
• Inter-state transport of handicrafts

Exceptions to Eway Bill requirement:

• Non-motorised conveyance
• Goods transported within a customs area
• Transport of certain goods like fruits, vegetables, fish etc. 

How to Register on Eway Bill Portal?

Step 1: To register, click on the link-https://ewaybill.nic.in/Account/EWBUserRegistration.aspx 

Step 2: Enter your GSTIN and click “Go” to proceed to the next step. Some details like applicant’s name, trade name, address, and mobile number will automatically get filled.

Step 3: Click on the “Send OTP” option at the bottom of the form.

Step 4: Enter the OTP received on your registered mobile number and click “Verify OTP.”

Step 5: Create a username and password for your account.

Steps to enroll for unregistered transporters

Step 1: Transporters who are not registered can enroll using this link- https://ewaybill.nic.in/Account/Enrolment.aspx 

Step 2: Select your state from the dropdown menu. Enter your PAN details and fill in the trade name.

Step 3: Choose your business type and enter the place and contact information for your business.

Step 4: Fill in Aadhaar details of either a proprietor or major authority of the company.

Step 5: Upload essential documents such as ID proof and proof of address

Step 6: Create login credentials by setting a username and password for accessing the system.

Step 7: Confirm that all the details provided are true and correct to the best of your knowledge.

Step 8: Submit the form to complete the enrolment process.

Step 9: Receive Transporter ID- The system generates a 15-digit transporter ID (TRANS ID). Share this ID with the supplier or recipient to generate an e-Way Bill.

How to Login to the Eway Bill Portal?

Step 1: Go to the official EWB portal using this link: https://ewaybill.nic.in/

Step 2: Once on the portal’s homepage, click on the “Log in” option on the dashboard.

Step 3: In the login section, type your username, password in the appropriate field and enter the captcha code shown in the image into the captcha field.

Step 4: Click on the “Login” button to access your account.

How to Generate a New Eway Bill on the E-way Bill Portal?

Here are the methods to create Eway bills using the EWB-01 format:

Through the Website

Step 1: Go to the E-way bill system using this link – https://ewaybill.nic.in/Login.aspx 

Step 2: Enter your Username, Password, and Captcha code and click ‘Login’.

Step 3: On the dashboard, select ‘Generate new’ under the ‘E-waybill’ section on the left side

Step 4: Fill in required fields such as transaction type, subtype, document type (Invoice, Bill, Challan, Credit Note, Bill of Entry, or Others), document number, date of the invoice/challan/document, details of your consignment such as product name, description, HSN code, quantity, unit, taxable value, tax rates, etc, mode of transport (rail, ship, road, or air) and the approximate distance to be covered

Step 5: Click on the ‘Submit’ button

Step 6: If no errors are found, your request will be processed and an E-way bill in Form EWB-01 will be generated, and assigned a unique 12-digit number.

Step 7: Print the E-way bill and ensure to keep it with you while transporting the goods. 

Through SMS

• To obtain e-way bills generated by other parties via SMS for a transporter or taxpayer, use the format ‘EWBL Date’ and send this SMS to 7738299899.

Through e-Invoicing System

E-invoicing will affect the e-way bill system. Current e-way bill users can log into the e-invoice portal with the same credentials, avoiding new registration. With e-invoicing, e-way bills will be auto-populated from the e-invoice portal, simplifying the process.

Step 1: Upload the invoice details to the Invoice Registration Portal (IRP) by clicking on https://einvoice1.gst.gov.in/Home/UserRegistration.

Step 2: The IRP validates the invoice, generates a unique Invoice Reference Number (IRN) and a QR code, and returns the signed e-invoice.

Step 3: The e-invoice system will automatically populate the Part-A and Part-B details of the e-way bill based on the information provided in the e-invoice.

Step 4: Log in to the e-way bill portal. Enter the IRN of the invoice for which Eway bill is needed and submit the information to generate the Eway bill.

Step 5: The Eway bill number (EBN) will be generated, and you can download or print the e-way bill.

How to Confirm the Validity of Eway Bill?

• The EWay bill is valid for a specific time period and expires after that. A new bill must be generated following its expiry date.
• Validity is based on distance:
  • Up to 100 km: 1 day
  • Each additional 100 km: 1 extra day
  • Example: For 550 km, the validity is 6 days.

• Validity can be extended if goods are delayed due to Natural calamities, Trans-shipment delays, accidents, law and order issues
• The option to extend validity is available from 4 hours before to 4 hours after the expiration time of the E-Way bill. 

How to Cancel Eway Bill?

The Eway Bill System allows users to cancel bills for valid reasons such as incorrect delivery or erroneous entries. Steps to cancel E-way bill- 

Step 1: Open https://mis.ewaybillgst.gov.in/ewb_ctz/citizen/CancelEwbCitizen.aspx for cancelling the Eway Bill. Mention your mobile number and the Eway bill number in the designated field.

Step 2: Once the OTP is verified, specify the reason for cancelling the bill.

Step 3: Once cancelled, the Eway bill cannot be reused.

In conclusion, the Eway Bill system revolutionizes how goods move across India by digitizing documentation and ensuring GST compliance for consignments over ₹50,000. By requiring detailed tracking of goods from origin to destination, it simplifies operations for businesses and transporters alike. Embracing technology through the Eway Bill makes it an essential tool for the modern logistics sector to operate smoothly and securely across inter and intra-state borders.