E-Way Bill: A Complete Guide

An e-way bill or electronic way bill is an electronic receipt or a digital document generated on the GST portal when there is a movement of goods from one place to another. It acts as a mandatory permit for intra-state and interstate movements of goods valued at more than 50,000 rupees. The E-way bill system allows the government to track the movement of goods nationwide. 

It is led by Kerela’s Finance minister K.N. Balagopal & The ministerial panel has recommended the implementation of an eway bill system on the movement of gold and other precious stones or merchandise between the states. The aim was to limit tax invasion. 

This bill is created by the Goods and Services Tax Council; this organization is responsible for operating taxes in the country. It is created through the eWay portal and is valid for a specific period. It makes the process seamless by organizing the movement of goods and making a record of each consignment making the entire process clear and streamlined.

E-way Bill layout: Who should generate it?

It includes the information and details of goods. The E-way Bill consists of the following sections i.e. Part A and Part B. 

Part A 

Part A is a document that includes the issuer’s or recipient’s GSTIN. This is generated on the e-waybill portal and has the origin and destination of the goods, the value of goods along with the reason for shift, and expiration date.

Part B

Has information related to Logistics and transport details (e.g. Vehicle number)

Part - A

GSTIN of Recipient

Place of delivery

Invoice or Challan Number

Invoice of Challan Date

Value of Goods

HSN Code

Reason for Transportation

Transport Document Number

Part B

Vehicle Number

The Bill is generated by the movement of goods by the consignor or consignee if goods are transported on their own or hired conveyance by road, railways, or air. It is the responsibility of the transporter to generate the e-way bill. 

Individuals who should generate the e-Way bill are: 

1. A person organizing the movement of goods.
2. Transporter handling the goods.
3. Receiver of goods.

E-way Bill System

The bill is generated by the e-Way bill portal. It operates under India’s Goods and Services Tax Authority. To create an e-Way bill the issuer has to be registered in the GST.

This document can be generated by the transport company occupying the goods, the driver, the Owner of goods, or the recipient of goods. This bill is usually created before the movement of the consignment be it from Land, air, or waterways. Every document has an EBN  (Eway Bill Number)that is accessible to people such as Suppliers, carriers, and recipients who can track it down on the GSTN portal.

Ways to Generate an E-way Bill

E-way bills can be created or cancelled through multiple channels like SMS, App, and by the e-Waybill portal by using the GSTIN and by acquiring login credentials to navigate the portal. 

Through Online Portal

The first step for the generation of an e-Waybill is to log in to the e-Way portal by entering the prompt details such as Username and Password. There is also an option to ‘generate e-Ways bills in bulk’.

Through SMS

It can also be generated conveniently through SMS by using the registered mobile number. Every user can access this service by registering the mobile number for the SMS service facility of e-way bill generation. The steps to register for the SMS facility are as follows:

• Login to the e-waybill portal and choose the option for ‘Registration’.
• Check the drop-down menu and click on the ‘For SMS’ option.
• The mobile number linked with GSTIN will displayed partially.
• Mobile numbers that are registered with the website under GSTIN will be registered for the SMS facility.
• Click the user ID appearing with the number if it is the correct one and press submit.

E-way Bill for multiple consignments and their validity

It is prepared for each consignment of goods valued at over 50,000. In case a transporter carries multiple consignments in the same vehicle an integrated bill has to be generated. Its validity depends on the distance to be travelled by the goods.  

Need of an E-way Bill

The e-way bill mechanism ensures that goods being transported are tracked under GST law and helps in checking Tax evasion. If any consignment is found without the bill then the tax authorities may find the GST registered person and a penalty of 10,000 or tax thought is imposed.

Some of the benefits of the e-Way bill are : 

• Uniformity in the logistics system throughout India.
• Easily track the goods from arrival to departure.
• Fast process and reduce tax avoidance.
• Authorities can easily control the merchandise.
• A seamless and streamlined process for all parties i.e. suppliers, operators, and recipients

Also, Check - GST Calculator

FAQs

• How to confirm that the provided E-way bill is correct?

Match the following details like GSTIN, HSN code, Distance, and Value to your invoice. And also can verify the transporter. You can also check by validating the EWB number in the portal and confirming its originality.

• How can I  create a bulk e-way Bill?

There is an option available “Bulk e-Way Bill” While accessing the online eway bill portal. Users can click on this option to proceed with multiple e-Way bills at a time.

• If I don’t have a GST number do I still have to generate an e-Way bill?

Individuals who don’t have a valid GST number are also required to generate an e-Way bill. If the supply is made by an unregistered person the other counterpart who is the receiver must be registered and have to ensure that all the regulations are met. However, an unregistered person cannot generate an e-Way Bill.