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.
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What is Eway Bill?
An e-Way Bill is a mandatory electronic document under the Goods and Services Tax (GST) regime in India, required for the movement of goods. When transporting goods valued over ₹50,000 based on a single invoice, bill, or delivery challan, registered persons must generate an e-Way Bill at ewaybillgst.gov.in.
The e-Way Bill can also be generated or canceled via SMS, an Android app, or through API integration. It’s essential to validate the GSTIN using the GST search tool before proceeding. Once generated, the e-Way Bill provides a unique e-Way Bill Number (EBN), which is accessible to the supplier, recipient, and transporter.
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?
| State | Eway Bill Limit |
|---|---|
| Andhra Pradesh | INR 50,000 for all taxable goods |
| Arunachal Pradesh | INR 50,000 for all taxable goods |
| Assam | INR 50,000 for all taxable goods |
| Bihar | Above INR 1,00,000 |
| Chhatisgarh | INR 50,000 for specified goods |
| Delhi | INR 1,00,000 |
| Goa | INR 50,000- Only for specified 22 goods |
| Gujarat | INR 50,000 |
| Haryana | INR 50,000 for all taxable goods |
| Himachal Pradesh | INR 50,000 for all taxable goods |
| Jammu and Kashmir | No eway bill is required |
| Jharkhand | Above INR 1,00,000 for all goods other than specified goods |
| Karnataka | INR 50,000 for all taxable goods |
| Kerala | INR 50,000 for all taxable goods |
| Madhya Pradesh | INR 1,00,000 for all goods other than tobacco products, pan masala, medicine, surgical goods and active pharmaceutical ingredients |
| Maharashtra | INR 1,00,000 for all taxable goods |
| Manipur | INR 50,000 for all taxable goods |
| Meghalaya | INR 50,000 for all taxable goods |
| Mizoram | INR 50,000 for all taxable goods |
| Nagaland | INR 50,000 for all taxable goods |
| Odisha | INR 50,000 for all taxable goods |
| Puducherry | INR 50,000 for all taxable goods |
| Punjab | INR 1,00,000 for all taxable goods |
| Rajasthan | INR 2,00,000 for all goods other than tobacco products, pan masala, articles of wood, iron and steel |
| Sikkim | INR 50,000 for all taxable goods |
| Tamil Nadu | INR 1,00,000 for all taxable goods |
| Telangana | INR 50,000 for all taxable goods |
| Tripura | INR 50,000 for all taxable goods |
| Uttar Pradesh | INR 50,000 for all taxable goods |
| Uttrakhand | INR 50,000 for all taxable goods |
| West Bengal | INR 1,00,000 for all taxable goods |
What are the Components of the Eway Bill?
An e-Way Bill consists of two parts:
- Part A: This includes details such as:
- Value of goods
- HSN code
- GSTIN of the recipient
- Place of delivery (PIN Code)
- Invoice or challan number and date
- Reason for transportation
- Transport document number (e.g., Goods Receipt Number, Railway Receipt Number, Airway Bill Number, or Bill of Lading Number)
- Part B: This contains transporter information, such as the vehicle number.
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.
- Supply of 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.
Who Should Generate an Eway Bill?
Under the Goods and Services Tax (GST) framework in India, the e-Way Bill is essential for the movement of goods valued over ₹50,000. Here’s an overview of when and how different entities should generate e-Way Bills:
1. Registered Persons
- Requirement: An e-Way Bill must be generated when goods valued over ₹50,000 are moved to or from a registered person.
- Optional Generation: Registered persons can voluntarily generate an e-Way Bill for goods valued below ₹50,000.
- Form to Fill:
- Part A: Before the movement of goods, the registered person must fill out Part A of Form GST EWB-01.
- Part B: If the registered person is the consignor or consignee, they must complete Part B of Form GST EWB-01, providing transporter details if applicable.
2. Unregistered Persons
- Requirement: Unregistered persons must also generate an e-Way Bill. If they supply goods to a registered person, the recipient assumes compliance responsibilities as if they were the supplier.
- Exceptions: For transport distances of 50 kilometers or less within the same State/Union Territory, details of the conveyance in Part B of Form GST EWB-01 may not be required.
3. Transporters
- Requirement: Transporters must generate an e-Way Bill if the supplier has not already done so. However, if the total value of all consignments in the conveyance exceeds ₹50,000 while individual consignments do not, they are still required to generate the e-Way Bill.
- Transporter ID: Unregistered transporters can obtain a Transporter ID by enrolling on the e-Way Bill portal.
- Form to Fill:
- Transporters generate the e-Way Bill based on information provided in Part A of Form GST EWB-01 by the registered person.
4. Transporting Multiple Consignments
- If transporting multiple consignments in a single vehicle, transporters can use Form GST EWB-02 to create a consolidated e-Way Bill by listing the e-Way Bill numbers of each individual consignment.
Summary Table
| Who | When | Part | Form |
|---|---|---|---|
| Registered person under GST | Before movement of goods | Fill Part A | Form GST EWB-01 |
| Registered consignor/consignee | Before movement of goods | Fill Part B | Form GST EWB-01 |
| Transporter of goods | Before movement of goods | Based on information from Part A | Generate e-Way Bill |
| Unregistered person (recipient registered) | Compliance as if the supplier | N/A | N/A |
Note: For movements involving air, ship, or railways, the consignor or recipient must fill in the necessary details in Part A of Form GST EWB-01. This structured approach ensures that all parties involved in the supply chain adhere to compliance requirements effectively.
How to Register on Eway Bill Portal?
- Steps to register for taxpayers:
- 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:
- Transporters who are not registered can enroll using this link- https://ewaybill.nic.in/Account/Enrolment.aspx
- Step 1: Select your state from the dropdown menu. Enter your PAN details and fill in the trade name.
- Step 2: Choose your business type and enter the place and contact information for your business.
- Step 3: Fill in Aadhaar details of either a proprietor or major authority of the company.
- Step 4: Upload essential documents such as ID proof and proof of address
- Step 5: Create login credentials by setting a username and password for accessing the system.
- Step 6: Confirm that all the details provided are true and correct to the best of your knowledge.
- Step 7: Submit the form to complete the enrolment process.
- Step 8: 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.
- 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.
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.
Disclaimer: This blog is written to make it easy for readers to understand complicated processes. Some information and screenshots may be outdated as government processes can change anytime without notification. However, we try our best to keep our blogs updated and relevant.
