E-Way Bill

The e-way bill is a critical tool under the Goods and Services Tax (GST) system in India, designed to streamline the movement of goods and ensure regulatory compliance. Its introduction has transformed logistics operations by reducing paperwork, curbing tax evasion, and enabling the seamless tracking of goods in transit. The e-way bill enhances transparency, promotes accountability, and optimizes the transportation process, making it an indispensable aspect of business compliance in today's digital age.

For companies involved in regular transportation of goods, the constant need to generate, track, and maintain e-way bills adds administrative burden. Ensuring that all goods are documented correctly, meeting varying state regulations, and avoiding penalties for non-compliance can be time-consuming.

At JKStartup360, we take the hassle out of managing e-way bills by offering expert assistance and comprehensive solutions. Our team ensures that your business remains compliant with GST regulations while you stay focused on growing your operations.

What is an E-way bill?

An e-way bill is an electronic document mandated under the Goods and Services Tax (GST) regime in India, required for the movement of goods valued at more than ₹50,000. It is governed by Section 68 of the CGST Act, 2017, and the accompanying Rule 138 of the CGST Rules, 2017, which specify the need for an e-way bill to ensure compliance during transportation of goods. The e-way bill must be generated online for both inter-state and intra-state movements, and it contains key details such as the GSTIN of the supplier and recipient, description of goods, and vehicle details. This rule helps improve logistics transparency, reduce tax evasion, and enable authorities to effectively track goods in transit.

When is an E-way bill required?

Comprehensive Overview of E-Way Bill Requirements in India An e-way bill is mandatory for the movement of goods in various business transactions under the GST regime, primarily when the consignment value exceeds ₹50,000. This requirement applies to several types of trade, including:

1. Sale: The movement of goods for sale purposes, whether through direct sales to customers or via e-commerce platforms.
2. Transfer: Goods transferred from one branch to another, particularly between branches located in different states.
3. Barter/Exchange: Goods exchanged as part of a barter trade must also be accompanied by an e-way bill.
4. Job Work: Goods sent for processing or intermediate work before final consumption or sale require documentation.
5. Supply for Consideration Other Than Money: Goods supplied in exchange for services or other goods necessitate an e-way bill.
6. Return of Goods: Goods returned to the supplier after a sale or dispatch must be documented.
7. Non-Supply Movements: Situations like goods sent for approval, exhibitions, or samples also require an e-way bill if the consignment value exceeds the prescribed limit.

The e-way bill ensures that all types of movements, whether for sale, transfer, barter, or other purposes are properly documented for tax and compliance purposes.

Certain goods, such as handicrafts and items intended for work purposes, are exempt from the ₹50,000 consignment value limit for e-way bill generation. This means that an e-way bill must be generated for these items regardless of their value, including situations where the value is below ₹50,000.

What Are the Exemptions from E-Way Bill Requirements in India?

Certain movements of goods in India are exempt from e-way bill requirements due to specific circumstances outlined in the GST regulations. These exemptions are particularly relevant for goods dealt under customs supervision, cargo movements to or from neighboring countries, and goods associated with government authorities.

1. Goods Dealt Under Customs Supervision

Goods that are under customs supervision or clearance do not require an e-way bill for their movement. This exemption applies to:

1. Imports and Exports: Goods being imported or exported are monitored by customs authorities, and the customs documentation serves as the necessary compliance documentation, eliminating the need for an additional e-way bill.

2. Cargo Movements to or from Nepal or Bhutan

The transportation of goods to or from Nepal and Bhutan is exempt from the e-way bill requirement. This exemption acknowledges the special trade arrangements and agreements India has with these neighboring countries.

1. Bilateral Trade Agreements: Goods transported under the provisions of these agreements are often accompanied by their own regulatory documents, such as customs declarations, which fulfill compliance requirements.

3. Certain Union Territories

In specific Union Territories, the movement of goods may also be exempt from e-way bill requirements based on local regulations.

1. Regulatory Framework: Certain goods may be exempted due to the local governance framework, where alternate regulatory measures are in place to ensure compliance and control over goods movement.

4. Movement of Goods When the Consigner is Any Government Authority

When goods are being moved and the consignor is a government authority, an e-way bill is not required. This applies to:

1. Government Supply: Goods supplied by government entities, including public sector undertakings, as these transactions are often regulated under specific government procurement policies and do not necessitate additional e-way bill documentation.

5. Movement of Goods through Non-Motor Vehicles

When goods are transported using non-motor vehicles, there is no requirement to generate an e-way bill, making it easier for small-scale traders, local businesses, and individual sellers to conduct their operations without additional compliance paperwork.

How to generate an E-way Bill?

An e-way bill can be generated through the following platforms:

1. GST Portal: The primary platform for generating e-way bills is the official GST portal. Users can log in (provided the person is already registered for GST) using their GSTIN credentials and navigate to the e-way bill section to create, modify, or cancel e-way bills.

2. E-Way Bill Portal: Users can access e-way bill portal. directly to create and manage e-way bills without going through the GST portal.

3. Generate E-Way Bill via SMS Portal: Generating an e-way bill through the SMS portal is a convenient option for users who may not have access to the internet or prefer using mobile services. Ensure that you are registered for the e-way bill system and that your mobile number is linked to your GSTIN. Users can send SMS to designated numbers available on the GST portal.

What do Part A and Part B refer to?

Part A and Part B refer to two distinct sections of the e-way bill that provide different sets of information about the transportation of goods.

Part A of the E-Way Bill

Part A includes essential details related to the invoice or delivery challan for the goods being transported. This section must be filled out before the e-way bill can be generated and is crucial for establishing the context of the movement.

Key details to be included in Part A:

1. Invoice or Challan Number
2. Invoice Date
3. GSTIN of the Supplier
4. GSTIN of the Recipient
5. Place of Supply
6. Value of the Goods
7. Description of Goods
8. HSN Code

Part B of the E-Way Bill

Part B contains information regarding the transportation of the goods. This section focuses on the logistics aspect of the movement.

Key details in Part B include:

1. Transporter Details
2. Vehicle Number
3. Transport Mode
4. Distance
5. Document Number

Who has to generate an E-way bill?

The responsibility for generating an e-way bill primarily lies with the consignor or supplier of the goods. However, there are specific scenarios where different parties may be required to generate the e-way bill. Here’s a breakdown of who has to generate it:

1. a. Consignor/Supplier: The consignor (the person or business sending the goods) is typically responsible for generating the e-way bill when the goods are being dispatched. This includes manufacturers, wholesalers, and retailers who are sending goods to customers or other businesses.

2. b. Transporter: In cases where the consignor is not required to generate the e-way bill, the transporter (the person or business responsible for transporting the goods) may be required to generate it. This often occurs in situations where goods are being moved by a third-party logistics provider.

3. c. Recipient/Consignee: The consignee (the person or business receiving the goods) may also need to generate the e-way bill in specific circumstances, such as when they are returning goods to the consignor or when the consignor has not generated it.

4. d. Job Worker: When goods are sent to a job worker for processing, the job worker is responsible for generating the e-way bill if the goods are being returned to the principal or dispatched to another location.

5. e. Unregistered Persons: In scenarios involving unregistered persons (those not registered under GST), the responsibility for generating the e-way bill may fall on the registered person (such as the supplier or transporter).

What are different forms used for E-Way bill generation?

1. E-Way Bill Form (GST EWB-01): This is the main form used to generate an e-way bill. It is used for generating a new e-way bill when goods are being transported.

Details Required:

1. Part A: This section requires details such as the GSTIN of the supplier and recipient, invoice number, invoice date, value of goods, and description of goods.
2. Part B: This section includes transportation details, such as the vehicle number, transporter details, transport mode, and distance.

2. E-Way Bill Modification Form (GST EWB-02): This form is used to modify the details of an existing e-way bill. It is essential to update any changes that occur after the e-way bill has been generated.

Details Required: Users can modify details such as the vehicle number, transporter details, or any other information that needs correction.

3. E-Way Bill Cancellation Form (GST EWB-03): This form is used to cancel an existing e-way bill.This is important if the movement of goods is no longer taking place or if the e-way bill was generated incorrectly.

Details Required: The e-way bill number to be canceled and the reason for cancellation.

4. E-Way Bill Report Form (GST EWB-04): This form is used to generate reports related to e-way bills for record-keeping and compliance. Useful for businesses to maintain compliance and for audits.

Details Required: Users can obtain details of e-way bills generated, modified, or canceled during a specified period.

5. E-Way Bill Acknowledgment Form (GST EWB-05): This form serves as an acknowledgment of the e-way bill generated. It is important for record-keeping and must be retained by both the consignor and consignee during the transportation of goods.

Details Required: E-way bill number, date of generation, and details about the consignor and consignee.

What is the Validity for E-Way bill?

General Validity: The e-way bill is valid for one day for every 100 kilometers (KM). If the distance includes a partial 100 KM, an additional day is added. This aligns with the standard rule for general cargo.

Over Dimensional Cargo (ODC): The validity is calculated as one day for every 20 KM. If there is any partial distance over the 20 KM, an additional day is added.

What are the important documents needed to carry an E-Way bill while transportation?

When transporting goods with an e-way bill, it's essential to carry additional documents to ensure compliance with Goods and Services Tax (GST) regulations and facilitate smooth transit.

Invoice or Bill of Supply: A commercial invoice or bill of supply must be carried, detailing the goods being transported, including descriptions, quantities, and values. This document serves as proof of sale and is crucial for verification during transportation.

or

Delivery Challan: If the goods are being transported without an invoice (e.g., in case of job work), a delivery challan must be carried. This document outlines the details of the goods and the purpose of their movement.

or

Proof of Payment While not always mandatory, having proof of payment for the goods being transported (like bank statements or receipts) can be helpful for verifying transactions and compliance.

Why is the E-Way Bill a critical compliance?

The e-way bill is critical for compliance within the Goods and Services Tax (GST) framework in India for several reasons:

Regulatory Requirement: The e-way bill is mandated under the GST law for the movement of goods valued at over ₹50,000. Failure to generate and carry a valid e-way bill can lead to penalties, fines, and legal issues for businesses.

Facilitating Smooth Movement: The e-way bill system streamlines the logistics and transportation process. It provides transporters and businesses with the necessary documentation to avoid delays at checkpoints, ensuring goods can move efficiently across state borders.

Audit and Assessment: E-way bills serve as crucial documentation during audits and assessments by tax authorities. They provide a record of goods transported, verifying transactions and ensure that the correct taxes have been paid.

How JKStartup360 Can Help with E-Way Bill Compliance?

Our team of experts is dedicated to providing tailored solutions that simplify the e-way bill process. We offer comprehensive support in generating e-way bills accurately and on time, ensuring that all necessary documentation is in place to meet regulatory requirements. With our guidance, businesses can focus on their core operations without the stress of compliance issues.

Ready to simplify your e-way bill compliance? Contact JKStartup360!