GST e-way Bill Guide: Required Documents, Bill Format, Exemption Under GST, Validity & More

Whether you're a business owner, transporter, or just curious to understand how e-way bills work, this guide breaks down the details in an easy-to-understand manner. Let's explore the essentials together!

Following the introduction of the Goods and Services Tax (GST) in India, several essential rules have been enacted regarding the supply of goods and services within the country. 

One significant development is the implementation of the e-Way bill, a crucial document required for the transportation of goods domestically. In the following sections, we will delve into key aspects such as the definition of the e-Way bill, its operational mechanism, applicable rules, and more.

What is an Eway Bill?

An Eway bill, short for Electronic Way Bill, is a document introduced under the Goods and Service Tax (GST) system to monitor the transit of goods. For any GST-registered individual involved in transporting goods valued over Rs. 50,000, it is mandatory to generate an Eway bill through the GST Portal.

LEDGERS has simplified the process of Eway bill generation and management for businesses. The Ledgers Eway bill tool is seamlessly integrated with GST invoices, bills of supply, purchase invoices, and customer or supplier accounts.

With a simple click, businesses can generate and share Eway bills with customers or suppliers. The rules for managing the movement of goods are outlined in the Eway bill rules. However, it's essential to note that the implementation of Eway bills was deferred when the GST Act came into effect on July 1st.

Who Should Generate an Eway Bill?

Here are the cases where a person with GST registration or an unregistered person and transporters need to generate an Eway bill:

When the movement of goods involves a registered person, and the value is over Rs. 50,000. Even if the value is less, a registered person can choose to generate an Eway bill.

An unregistered person supplying goods to a registered person must generate an Eway bill. The registered person must ensure compliance.

Transporters moving goods via road, air, rail, etc., must generate an Eway bill if the supplier has not done so.

How to Generate an Eway Bill?

An Eway Bill (EWB) is an electronic document for tracking the movement of goods, and it can be generated on the Eway Bill Portal. If you're a supplier or transporter moving goods valued at over Rs. 50,000 in a single vehicle, you need to carry a GST Eway bill, as per GST Council regulations. To get the Eway bill, both the supplier and transporter must be registered under GST. This rule has been effective since April 1, 2018.

Here are the steps to generate an E-way bill on the Government website:

1. Use LEDGERS Software

2. Visit the E-Way Bill Portal

3. Send an SMS

4. Use the Android App

5. Site-to-Site Integration (through API)

After generating the Eway bill on the portal with the required credentials, a unique Eway Bill Number (EBN) is generated and assigned to the registered supplier, recipient, and transporter.

Steps to Generate an e-Way Bill on the e-Way Bill Portal

Generating an e-Way Bill is a straightforward process on the GST E-Way Portal. Make sure you have both GST and transporter registrations before you begin.

Step 1: Visit the E-Way Bill generation portal at https://ewaybill.nic.in/. Log in with your details to access the platform.

Step 2: From the E-Way Bill main menu, select "Generate New" to start a new e-Way Bill.

Step 3: A new form for e-Way Bill generation will appear there you need to furnish the required information like a GST invoice. Choose "outward" if you're the supplier or "inward" if you're the recipient. Enter details of the supplier and recipient, along with their GSTIN if applicable.

When a registered GSTIN is entered, other details will be automatically filled. Double-check the details before moving to the next step.

Step 4: In the second part of the page, fill in the following information:

- Product name and description (similar to a tax invoice).

- HSN code for the product.

- Quantity and unit of the goods.

- Value of the products along with the tax rate.

- IGST or CGST rates applicable, based on the type of transport.

- Approximate distance of transport, transporter name, and transporter ID, which determine the validity of the e-Way Bill.

Step 5: Generate E-Way Bill

After filling in all the necessary details, click on "SUBMIT" to create the e-Way Bill. The portal will display the e-Way Bill with the number and a QR Code containing all the details in digital format. Provide a printed copy to the transporter for the journey.

Step 6: Consolidate E-Way Bill Generation

You can also create a consolidated e-Way Bill with all transaction details by entering just the e-Way Bill number. Click on "SUBMIT" to generate the consolidated e-Way Bill.

Remember, you can update an e-Way Bill after creation, including details on the transporter, consignment, consignor, and the GSTIN of both parties, as long as the bill is still valid.

Documents Required to Generate e-Way Bills

What documents do you need to generate an e-Way Bill?

1. Challan/Bill of supply/Invoice/ related to the consignment of goods.

2. For road transport: Transporter ID or vehicle number.

3. For rail, air, or ship transport: Transporter ID, transport document number, and date.

What is the e-Way Bill format?

The e-Way Bill is divided into two parts, Part A and B. Part A collects details related to the consignment, typically the invoice details. Here are the required details for Part A:

1. GSTIN of the recipient.

2. Pin code of the delivery location.

3. Invoice or challan number for the supplied goods.

4. Mention the value of the consignment.

5. Enter the HSN code of the transported goods. For turnover up to INR 5 crores, use the first two digits of the HSN code. For turnover above INR 5 crores, use a four-digit HSN code.

6. Predefine the reason for transportation and select the most appropriate one.

7. Indicate the transport document number, including the goods receipt number, railway receipt number, or airway bill number.

E-Way Bill Exemption Rules under GST in India

Under the GST regime in India, there are situations where the creation of an e-Way bill for the transportation of goods is exempted. Some of the reasons for this exemption include:

1. Goods Value: When the value of goods being transported is less than Rs. 50,000.

2. Non-motorized Vehicle: If a non-motorized vehicle is used for transportation.

3. Customs Seal or Supervision: When goods are transported under customs seal or supervision.

4. Bhutan or Nepal: For the transportation of cargo to Bhutan or Nepal.

5. Customs Clearance: Transporting goods for customs clearance to a Container Freight Station (CFS) or Inland Container Depot (ICD) from a land customs station, air cargo complex, or customs port.

6. Empty Cargo Containers: Transportation of empty cargo containers.

7. Exempt Goods: Transport of goods that are exempt under GST rules or included in the exempt goods list specified by states/Union Territories.

Please note that this list is illustrative, and there may be other reasons for the applicability of e-Way bill exemption.

What is the Validity of An e-Way Bill?

Many of you keep asking about the validity of the Way bill and some are still perplexed about it. Therefore, Knowing the validity of an e-way bill is an essential thing. Here are the validity periods for better understanding:

1. For Less than 100 km: The e-Way Bill is valid for one day from the date of generation.

2. For 100 km or more but less than 300 km: The e-Way Bill is valid for three days from the date of generation.

3. For 300 km or more but less than 500 km: The e-Way Bill is valid for five days from the date of generation.

4. For 500 km or more but less than 1,000 km: The e-Way Bill is valid for ten days from the date of generation.

5. For 1,000 km or more: The e-Way Bill is valid for fifteen days from the date of generation.

It's essential to note that the validity period is calculated based on the distance covered, and it includes the day of generation as well. If the e-Way Bill expires, a new one needs to be generated if the goods are still in transit.

Advantages of e-Way Bill System

1. Fewer Paper Documents:

The e-Way bill reduces the need for extensive paper documentation, making it eco-friendly and simplifying the process of carrying and safeguarding documents.

2. Reduced Physical Interaction:

Transporters and business representatives can generate transport documents online, eliminating the need for physical visits to tax authorities or checkpoints. This enhances the efficiency of logistics systems.

3. Shorter Checkpoint Wait Times:

The streamlined online system contributes to shorter wait times at various checkpoints, leading to increased overall efficiency in transport systems and potential cost savings.

4. Easy and Quick Generation:

The online e-Way bill generation process is user-friendly and efficient, making it easier for entities under the GST regime to comply with tax regulations.

Frequently Asked Questions-

What is a GST e-way bill?

A GST e-way bill is an electronic document required for the movement of goods valued at over Rs. 50,000 within the country. It ensures the seamless transportation of goods and is generated online.

Who needs to generate an e-way bill?

The responsibility to generate an e-way bill lies with the person causing the movement of goods, which can be the supplier, recipient, or transporter. It is mandatory for goods exceeding Rs. 50,000 in value.

What information is required to generate an e-way bill?

Key details include the GSTIN of the supplier and recipient, invoice/challan number, HSN code, quantity, value of goods, transport details, and reasons for transportation.

Is there an exemption for certain goods or transactions?

Yes, some goods and specific transactions are exempt from requiring an e-way bill. These exemptions include goods transported within certain areas, specific types of goods, and more.

Can an e-way bill be canceled?

Yes, an e-way bill can be canceled online within 24 hours of its generation. However, once verified by a tax officer, it cannot be canceled.

What happens if an e-way bill expires during transit?

If the validity of the e-way bill expires during transit, goods cannot be further moved. A new e-way bill needs to be generated to continue the transportation.

Are there any penalties for non-compliance with e-way bill rules?

Yes, penalties may be levied for non-compliance, including detention or seizure of goods, and fines under GST regulations.

Can an e-way bill be updated after generation?

Yes, certain details on an e-way bill can be updated, including vehicle details, transporter details, and the like. However, core details like GSTIN, place of delivery, and the like cannot be modified.

Also Read: Zomato and Swiggy Receive GST Demand Notices for Dues Amounting to Rs 750 Crore from DGGI, Reports Indicate

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