What is GST eWay bill?

The Goods and Services Tax, commonly known as GST eWay bill refers to an electronic way bill required for the movement of goods from one place to another that exceeds the limit of Rs. 50,000, typically in the context of interstate transportation in India. It was introduced as part of the GST regime to ensure the proper tracking and documentation of the movement of goods and to curb tax evasion. GST eWay bill is mandated by the Government of India in terms of Section 68 of the Goods and Services Tax Act.

The GST eWay bill system is designed to streamline the movement of goods, enhance tax compliance, and reduce tax evasion. It aims to bring transparency and accountability to the logistics and transportation sector by ensuring that the details of goods in transit are readily available to tax authorities. Businesses engaged in the transportation of goods need to be aware of the eWay bill requirements to avoid legal and financial consequences.

When should GST eWay bill be generated?

As mentioned above, the GST eWay bill is issued for goods exceeding the limit of Rs. 50,000. However, there are other specific situations listed below that lead to the issuance of an eWay bill:

Interstate movement of goods: An eWay bill is mandatory for the transportation of goods from one state to another, regardless of the value of the goods. This includes both taxable and exempted goods

Intrastate movement of goods: eWay bills are also required for intrastate (within the same state) movement of goods if the value of the goods being transported exceeds the specified threshold. The threshold value may vary from state to state, so checking the state-specific rules is important. .

Transport of specified goods: Certain categories of goods, regardless of their value, require an eWay bill for both interstate and intrastate transportation. These specified goods are listed in the eWay bill rules, and it's important to review the latest updates to determine if your goods fall under this category

Recipient's request: Even if it's not mandatory, the supplier, recipient, or transporter can choose to generate an eWay bill for the movement of goods of any value. This option can be exercised voluntarily to facilitate smooth transit and comply with documentation requirements.

Supply to unregistered persons: If a registered supplier is delivering goods to an unregistered person, and the value of the goods exceeds the specified threshold, an eWay bill is required Transport for job work: eWay bills are necessary when goods are sent to a job worker for processing, testing, or other work, even if the value of the goods doesn't meet the threshold. It's imperative to note that the policies related to eWay bills, including the threshold value and exemptions, may vary from state to state in India. Therefore, businesses should keep in mind the specific requirements applicable to their state and ensure compliance with GST eWay bill provisions since the failure to issue an eWay bill when required could pose penalties and other legal repercussions.

Who should generate GST eWay bill?

The Goods and Services Tax eWay bill is initiated by different parties involved in the transportation of goods. The responsibility for generating GST eWay bill can vary based on the circumstances of the supply or movement of goods and may include:

Supplier/ Consignor: In many cases, the supplier of the goods is responsible for generating the eWay bill. This is often the case when the supplier is also the transporter of the goods

Recipient/Consignee: The recipient of the goods can also generate an eWay bill. This is particularly relevant when the recipient is registered under GST and is aware of the details of the consignment. The recipient can generate the eWay bill if the supplier has not done so.

Transporter: If neither the supplier nor the recipient has generated the eWay bill, the transporter of the goods can take on the responsibility of creating it. The transporter can generate the eWay bill based on the information provided by the supplier or recipient

Registered unregistered person: In the case of supply to an unregistered person, the registered supplier must generate the eWay bill. However, if an unregistered person is transporting goods, they can appoint a transporter to generate the eWay bill on their behalf

Cases when GST eWay bill is not required

In many states, eWay bills are not mandatory for the movement of goods within a city or for distances of up to 10 kilometers. However, this exemption may vary, so it's important to confirm the local rules. However, there are some specific circumstances as mentioned below when the GST eWay bill is not required:
Transportation of exempt goods: An eWay bill is not required when transporting goods that are exempt from GST. Exempt goods are those on which no GST is applicable, and therefore, there is no need to generate an eWay bill for their transportation

Transportation of Non-GST goods: Goods that are not subject to GST, such as alcohol for human consumption, petroleum products, and electricity, does not require an eWay bill for their movement

Transportation of specified goods: The government may specify certain goods for which eWay bills are not required. These exemptions may change over time, so it's essential to check the latest notifications and updates

Intra-State movement below threshold: In some states, eWay bills are not required for intra-state movements of goods below a certain threshold value. The threshold value could vary from state to state

Transportation by non-motorized conveyance: Movement of goods by non-motorized conveyances like horse carts, manually pulled rickshaws, and hand carts typically do not require eWay bills

Transportation by government: When government agencies or departments transport goods, an eWay bill may not be necessary

Disclaimer: The tax laws and regulations are subject to change, and the exemption criteria keeps changing from time-to-time.

How to generate an eWay bill on the portal?

Follow the steps mentioned below required for the generation of the eWay bill on the portal:

Access the GST portal: Visit the official GST portal at https://www.gst.gov.in/

Login: Login to the portal using your GSTIN (Goods and Services Tax Identification Number) and password

Select 'E-Way bill' option : After logging in, select the 'E-Way bill' option on the dashboard, and a drop-down menu will appear then click on 'Generate E-Way Bill'

Fill in the required information:

Select whether you are the supplier, recipient, or transporter.

Fill in the necessary details like the transaction type (outward or inward supply), the GSTIN of the supplier and recipient, the place of delivery, invoice or document number, invoice date, and the approximate distance in kilometers.

Item details: Add details about the goods being transported, including the product description, HSN (Harmonized System of Nomenclature) code, quantity, and unit

Transporter details: If you are the transporter, provide transporter details like the transporter name, transporter ID, and the mode of transportation

Document details: Attach relevant documents like the invoice, bill of supply, or delivery challan

Generate eWay bill: Once you've filled in all the required information, click the 'Generate EWB' button

Review and confirm: Carefully review the information provided for accuracy. If everything is correct, click the 'Generate EWB' button again to confirm

E-Way bill generation: After confirmation, the system will generate the e-way bill, including a unique E-Way Bill Number (EBN)

Print or download: You can print the eWay bill or download it in PDF format. The generated eWay bill will also be available for reference on the portal

Dispatch with E-Way bill: Ensure that the e-way bill accompanies the goods during their transportation, as it is a mandatory document for the movement of goods

The process and requirements for generating eWay bills may change over time, so it's essential to refer to the latest guidelines and updates on the official GST portal or consult with a tax professional for the most up-to-date information and compliance.

Validity period of eWay bill in GST

The validity period of the eWay bill (EWB) is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100 km or part of its movement, one-day validity has been provided in the case of regular vehicles or transportation modes. For every 20 km or part of its movement, one-day validity is provided. However, in the case of over-dimensional cargo vehicles, this validity expires at midnight of the last day.

What are the contents of an eWay bill?

Below are the key components of the GST eWay bill:

Electronic document: The eWay bill is generated via GST portal electronically or through a mobile app. It contains all the relevant details of the goods being transported, the consignor, the consignee, the transporter, and the vehicle used for transportation

Mandatory for certain transactions: E-way bills are mandatory for the movement of goods worth more than a specified value (i.e. Rs. 50,000), which may vary from state to state. This value is set at a certain threshold, and if the value of the goods exceeds this threshold, an eWay bill must be generated

Interstate and intrastate movement: E-way bill GST is required for both interstate and intrastate movements of goods. Even if goods are being transported within the same state, an eWay bill may be necessary if the value of the goods exceeds the specified threshold

Validity period: An eWay bill is valid for a specific period, which depends on the distance the goods are expected to travel

Enforcement and penalties: Authorities can inspect vehicles and verify eWay bills during transit. Failure to produce a valid eWay bill can result in penalties and the seizure of goods

Generation and updation: The eWay bill can be generated by the supplier, recipient, or transporter of the goods. The person responsible for generating the eWay bill must update the information on the GST portal as the goods move from one place to another, providing real-time tracking

Exemptions: Some categories of goods and certain situations are exempt from the requirement of eWay bills, and these exemptions may vary by state and time. For a comprehensive list of exemptions, please refer to the official GST website.

Documents and details required to generate GST eWay bill

For the generation of GST eWay bills in India, the following documents and details are required:

Invoice or bill of supply: You need the invoice or bill of supply related to the movement of goods

Transporter ID: If the transportation is done by a registered transporter, you'll need their GSTIN (Goods and Services Tax Identification Number)

Vehicle number: Details of the vehicle used for transportation, including the vehicle number

Goods description: A clear description of the goods being transported, including their HSN (Harmonized System of Nomenclature) or SAC (Services Accounting Code) code

Value of goods: The total value of the goods being transported

Place of supply: The location where the goods are being shipped to

Reason for transportation: You may need to specify the reason for transporting the goods, such as supply, export, import, job work, etc

GSTIN of the recipient: The GSTIN of the recipient (if applicable)

Transporter document number: If the transporter is not a registered GST taxpayer, you'll need the transporter document number (such as the Lorry Receipt or Road Way Bill)

Part-B details: For a consolidated eWay bill, you might need Part-B details, including vehicle number, transporter ID, and document number

Note: Keep in mind the specific requirements and the process for generating an eWay bill may vary from state to state in India.

What are the penalties associated with the GST eWay bill?

When you move the goods without the cover of an invoice and eWay bill constitutes an offense, and a penalty of Rs. 10,000 is levied for each offense or the tax sought to be evaded (whichever is greater). As a result, the bare minimum penalty that is levied for not complying with the rules is Rs. 10,000

FAQ's:

Q. Can I add two invoices in one eWay bill?

Two invoices cannot be generated for one eWay bill. As mentioned above, an eWay bill is a document that is required to be generated for the movement of goods for more than Rs. 50,000 within the country and is mandated to be generated for each and every unique invoice/shipment. It is to be noted that each invoice/shipment requires a separate e-way bill comprising its own unique number.

Q. Are eWay bills required when the goods are billed within 10 km?

Under the Goods and Services Tax (GST) regulations in India, eWay bills are generally required for the movement of goods when the distance exceeds 10 kilometers, except in a few specific cases. If the distance for the movement of goods is less than or equal to 10 kilometers, there is usually no requirement to generate an eWay bill.

Q. How are the criteria of “Value of Consignment of Goods” applied?

It is based on the value of the goods declared in the invoice, a bill of challan or a delivery challan, as the case may be, issued in respect of the said consignment and also includes central tax, state or union territory tax, integrated tax and cess charged, if any. However, it will not include the value of the exempt supply of goods, where the invoice is issued in respect of both exempt and taxable supply. It will also not include the value of freight charges for the movement charged by the transporter.

Q. Can the validity of GST eWay bill be extended?
Yes, the validity of the eWay bill can be extended in case the consignment cannot reach the destination within the validity period due to exceptional circumstances such as issues relating to law & order, natural calamity, delay in shipment, conveyance accident, or more. Moreover, an explanation has to be given by the transporter during the extension of the validity period of an eWay bill.

Q. If any mistakes or any wrong entry is done in the eWay bill can edits be made for the same?
Once the eWay bill is generated, it cannot be edited or modified. Only Part B can be updated. However, if an eWay bill is generated with wrong information, it can be canceled and generated afresh. However, it must be done within twenty-four hours from the time of generation.