The Simplified Guide to E Way Bill in India

Imagine you’re moving goods from one place to another for your business. If these goods are worth more than a certain amount, the Indian government wants to know about it. That’s where the e Way Bill comes in. Think of it as an electronic permit for transporting goods. This guide breaks down everything you need to know about it in simple terms.

What is an eWay Bill? (Think of it as a Digital Pass)

An e-Way Bill is an electronic document that you need to generate on a special online portal before you move goods worth more than ₹50,000 from one place to another. It’s like a digital pass that tells the government what goods are being moved, who is sending them, and where they are going. This helps in tracking goods movement and prevents tax dodging.

Example:

Let’s say “Happy Furniture” in Bangalore is sending a truckload of sofas worth ₹60,000 to a shop in Chennai. Before the truck starts its journey, Happy Furniture (or the transporter they hire) needs to create an e-Way Bill online. This digital pass will have all the important details about the sofas and the journey.

What are the components of an e-way bill? (Two Main Sections)

An e-Way Bill has two main parts that need to be filled:

Part A: The Goods and Parties Involved

This section is all about what is being moved and who is involved. It includes details like:

• Who is selling (Supplier/Consignor): Their GSTIN (a unique tax ID).
• Who is buying (Recipient/Consignee): Their GSTIN.
• Where the goods are starting from: The address of dispatch.
• Where the goods are going: The address of delivery.
• What is being moved: Details from the invoice, like the invoice number and date.
• How much are the goods worth: The total value.
• What type of goods are they: The HSN code (a special code for goods).
• Why are they being moved: The reason (like a sale, for repair, etc.).

Part B: The Transportation Details

This section focuses on how the goods are being moved. It includes:

• The vehicle number: If the goods are being transported by road.
• Who is transporting: The transporter’s ID (if they have one).
• How are they being transported: The mode (road, rail, air, etc.).
• How far is the journey: The approximate distance in kilometers.

Example:

Back to Happy Furniture sending sofas:

• Part A will have Happy Furniture’s GSTIN, the Chennai shop’s GSTIN, the Bangalore warehouse address, the Chennai shop address, the invoice number and date for the sofa sale, the total value of ₹60,000, the HSN code for sofas, and the reason as “Supply” (meaning a sale).
• Part B will be filled when they know which truck will carry the sofas. It will have the truck’s registration number, the transporter’s ID (if applicable), the mode as “Road,” and the distance between Bangalore and Chennai.

When should an eWay Bill be issued? (When the Value Crosses the Limit)

You need to generate an e-Way Bill when the value of the goods you are moving is more than ₹50,000. This applies in a few situations:

• Selling Goods (Supply): When you sell goods to someone.
  Example: A garment manufacturer in Surat sells clothes worth ₹70,000 to a retailer in Mumbai. An e-Way Bill is needed.
• Moving Goods for Reasons Other Than Sale: This includes things like sending goods for repair, to a job worker for further processing, or for an exhibition.
  Example: A company in Gurgaon sends machinery worth ₹55,000 to a factory in Faridabad for repairs. An e-Way Bill is required.
• Buying from Someone Not Registered for GST: If you are registered for GST and you buy goods worth more than ₹50,000 from someone who is not registered for GST, you need to generate the e-Way Bill.
  Example: A registered bakery buys raw materials worth ₹52,000 from a local farmer who is not registered for GST. The bakery needs to create the e-Way Bill.

Key Takeaway: If the total value of the goods in a single consignment is above ₹50,000, you generally need an e-Way Bill.

Who should generate an eWay Bill? (The Responsibility)

The responsibility of creating the e-Way Bill usually falls on one of these parties:

• The Seller (Consignor): Usually, the person sending the goods is the one who generates the e-Way Bill.
  Example: In the Happy Furniture case, Happy Furniture in Bangalore would typically generate the e-Way Bill.
• The Buyer (Consignee): If the seller is not registered for GST, then the person receiving the goods has to generate the e-Way Bill.
  Example: If a registered online seller buys handicrafts worth ₹65,000 from an artisan who isn’t GST registered, the online seller will create the e-Way Bill.
• The Transporter: If neither the seller nor the buyer creates the e-Way Bill, the person or company transporting the goods is responsible for generating it. This often happens when they are authorized by either the seller or the buyer.
  Example: If Happy Furniture hires a trucking company and doesn’t generate the e-Way Bill themselves, they can ask the trucking company to do it.

Cases when an eWay bill is not required (Exemptions)

There are certain situations where you don’t need an e-Way Bill, even if the goods are worth more than ₹50,000. Here are some common examples:

• Moving Goods in a Non-Motorized Vehicle: If you’re using a handcart, cycle, or similar non-motorized transport.
  Example: A small shop owner using a rickshaw to move goods to a nearby store.
• Specific Types of Goods: The government has a list of goods that don’t require an e-Way Bill. This includes things like household LPG cylinders, postal bags carried by the postal department, and precious stones.
  Example: Transporting cooking gas cylinders for home use.
• Goods Under Customs Supervision: When goods are being moved under the strict watch of customs officials.
• Transit Cargo to Nepal or Bhutan: Goods that are just passing through India on their way to Nepal or Bhutan.
• Short Distance Movement Within the Same State (If Applicable): Some states have specific rules where an e-Way Bill might not be needed for very short distances within the state.
  Example: A rule in a specific state might say that if you’re moving goods within the same city and the distance is less than 10 km, no e-Way Bill is needed. Remember to check your specific state’s rules.
• Movement for Defense Purposes: Goods being transported for the military or other defense organizations.
• Empty Containers: Moving empty shipping containers.

State-wise e-Way Bill rules and limits (State-Specific Variations)

While the basic rules for e-Way Bills are the same across India, individual states can have their own specific rules and limits for goods moving within the state (intra-state movement).

For goods moving between states (inter-state movement), the ₹50,000 limit generally applies everywhere. However, for movement within a state, some states might have different value limits or specific exemptions.

Example:

Most states have now aligned their intra-state e-Way Bill threshold with the inter-state threshold of ₹50,000. However, it’s always a good idea to check the specific rules of the state you are operating in. For instance, a particular state might have initially had a higher limit for intra-state movement or specific exemptions for certain types of businesses within the state. You can usually find this information on the state’s tax department website.

How to generate an eWay Bill on the portal (Step-by-Step Online Process)

1. Register on the Portal: If you haven’t already, you need to register on the official e-Way Bill portal: ewaybillgst.gov.in.
2. Log In: Use your registered username and password to log in.
3. Go to “Generate New”: On the left-hand menu, under the “E-waybill” section, click on “Generate New.”
4. Fill in Part A (Goods and Party Details): Carefully enter all the required information about the supplier, recipient, goods, invoice, and reason for transport.
5. Fill in Part B (Transportation Details): If you know the vehicle number and transporter details, enter them here. If not, you can save Part A and the transporter can update Part B later.
6. Submit: Once all the details are filled correctly, click the “Submit” button.
7. Your e-Way Bill is Generated: The system will generate a unique 12-digit e-Way Bill number and you can download or print the e-Way Bill (Form GST EWB-01). This needs to be carried with the goods during transport.

SMS e-way bill generation on mobile (Generating via Text Message)

For those who might not always have internet access, the government also provides a way to generate e-Way Bills using SMS on your mobile phone. To use this service, you need to first register your mobile number on the e-Way Bill portal.

The process involves sending specific SMS commands to a designated number. The format of the SMS will depend on whether you are creating a new e-Way Bill or updating the vehicle details (Part B).

Example:

To create a new e-Way Bill via SMS, you might send a message in a format like this (this is a simplified example, always check the official portal for the exact format):

EWBGEN <Supplier GSTIN> <Recipient GSTIN> <Dispatch Place> <Delivery Place> <Invoice Number> <Invoice Date> <Value> <HSN Code> <Reason Code>

Similarly, there are specific formats for updating Part B. You can find the detailed SMS formats and instructions on the official e-Way Bill portal under the “SMS Generation” section.

Validity of eWay Bill (How Long is it Valid?)

An e-Way Bill has a limited time period for which it is valid. This validity is based on the distance the goods need to travel. The validity starts from the moment the e-Way Bill is generated.

Distance of Travel and Validity Period

Example:

If Happy Furniture is sending sofas from Bangalore to Chennai, which is about 350 km:

• For the first 200 km, the validity is 1 day.
• For the remaining 150 km (which is part of the next 200 km), another day is added.

So, the total validity of the e-Way Bill would be 1 + 1 = 2 days. If there are unavoidable delays, like a vehicle breakdown, you can apply for an extension of the e-Way Bill’s validity on the portal before it expires.

Documents or details required to generate an eWay Bill

Before you start generating an e-Way Bill, make sure you have the following information and documents handy:

• The Invoice, Challan, or Bill of Supply: This document contains details about the goods being transported.
• Transporter Details: Either the Transporter ID (if they have one) or the Vehicle Number of the vehicle carrying the goods (if by road).
• GSTINs: The GST Identification Numbers of both the supplier (consignor) and the recipient (consignee).
• Addresses: The exact place from where the goods are being dispatched and the destination where they are being delivered.
• Value of Goods: The total value of the consignment.
• HSN Code: The Harmonized System of Nomenclature code for the goods being transported.
• Reason for Transportation: Why the goods are being moved (e.g., sale, job work, etc.).

In Conclusion:

The e-Way Bill is an important part of the GST system that helps in regulating the movement of goods. By understanding the rules and following the procedures for generating and managing e-Way Bills, businesses and transporters can ensure smooth and compliant operations. Always remember to refer to the official GST portal for the most up-to-date information and any changes in the regulations.