The introduction of the E-Way Bill system under GST has transformed the way goods are transported across India. It plays a crucial role in ensuring compliance, reducing tax evasion, and streamlining logistics. Whether you’re a business owner, transporter, or supplier, understanding the GST E-Way Bill is essential for smooth and hassle-free operations.
In this blog, we’ll break down the basics of the E-Way Bill system, its importance, and how it facilitates the efficient movement of goods across state and national borders.
What is an E-Way Bill?
The E-Way Bill, short for Electronic Way Bill, is a mandatory document required under the Goods and Services Tax (GST) regime for transporting goods worth more than ₹50,000. It serves as a digital permit that helps the government track the movement of goods in real-time, ensuring tax compliance and reducing the chances of tax evasion.
With the introduction of the GST E-Way Bill system, businesses no longer need multiple state permits, making logistics smoother and more efficient. The system enables authorities to monitor consignments seamlessly, preventing unnecessary delays and improving transparency in goods transportation.
Understanding the Structure of an E-Way Bill
The E-Way Bill consists of two key parts—Part A and Part B. Each section plays a distinct role in tracking and verifying the movement of goods.
1. Part A: Details of Goods and Transaction
Part A of the E-Way Bill captures the primary transaction details, including:
- GSTIN of Supplier and Recipient – Unique GST identification numbers of the seller and buyer.
- Invoice or Challan Details – The invoice number and date related to the consignment.
- Goods Description (HSN Code) – The Harmonized System of Nomenclature (HSN) code, quantity, and value of the goods being transported.
- Reason for Transportation – Whether the goods are being moved for sale, return, job work, or any other reason.
Read: Know about 15 Digits GSTIN
Part A is typically filled out by the supplier or the registered business initiating the transportation of goods.
2. Part B: Transporter Details
Part B contains details related to the transportation and movement of the goods, including:
- Vehicle Number – The registration number of the vehicle carrying the consignment.
- Transporter ID – The GSTIN or transporter ID for registered logistics providers.
- Mode of Transport – Whether the goods are being moved via road, rail, air, or ship.
If the goods are being transported by a third-party logistics provider, the transporter is responsible for updating Part B. However, if the supplier is handling transportation, they must ensure both Part A and Part B are correctly filled out before moving the goods.
Rules and Applicability of E-Way Bill
The E-Way Bill system is a crucial part of the Goods and Services Tax (GST) regime, designed to ensure transparency and compliance in the transportation of goods. Governed by Rule 138 of the CGST Rules, 2017, the system mandates that certain goods in transit must be accompanied by an E-Way Bill, helping authorities track shipments and prevent tax evasion.
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When is an E-Way Bill Required?
As per GST E-Way Bill rules, an E-Way Bill is mandatory when:
- The value of transported goods exceeds ₹50,000 (including tax).
- The movement of goods occurs inter-state (between states) or intra-state (within a state).
- Goods are transported by a registered business for supply, return, or transfer purposes.
- An unregistered person supplies goods to a registered buyer.
- Goods are transported by road, rail, air, or ship, whether by the supplier, buyer, or a third-party transporter.
However, there are some exceptions to these requirements.
Exemptions from E-Way Bill Requirements
Not all goods require an E-Way Bill under GST. Some exemptions include:
- Non-Motorized Transport: Goods transported by non-motorized vehicles (e.g., hand carts, bicycles) are exempt from the E-Way Bill requirement.
- Exempt Goods: Certain goods, such as perishable food items, jewelry, and certain agricultural products, do not require an E-Way Bill, as listed under Annexure to Rule 138(14) of CGST Rules.
- Short-Distance Transportation: If goods are transported within 50 kilometers, only Part A of the E-Way Bill needs to be updated, and Part B is not mandatory.
- Customs Movement: Goods transported under customs clearance bonds, such as from inland container depots to ports, do not require an E-Way Bill.
E-Way Bill Limits and Requirements
The E-Way Bill limit ensures that only significant consignments need tracking, reducing unnecessary paperwork for small-scale movement of goods.
Threshold for E-Way Bill Generation
- An E-Way Bill is mandatory for goods worth ₹50,000 or more.
- For specific states and notified goods, state-level limits may apply. Some states have set lower thresholds for intra-state movement.
Key Requirements for Generating an E-Way Bill
To generate an E-Way Bill, businesses must provide essential details to ensure accurate tracking and compliance:
- GSTIN (Goods and Services Tax Identification Number) – A unique identification number assigned to the supplier and recipient.
- Invoice/Bill of Supply/Challan Details – The relevant document number and date.
- Product Description & HSN Code – The Harmonized System of Nomenclature (HSN) code and detailed description of goods.
- Quantity & Value of Goods – The exact quantity, unit of measurement, and taxable value of the shipment.
- Reason for Transport – Whether the movement is for sale, return, job work, or other purposes.
- Transporter ID & Mode of Transport – The GSTIN of the transporter (if applicable) and whether the goods are moved via road, rail, air, or ship.
- Vehicle Number – If transported by road, the vehicle registration number must be included.
- Distance Covered – The estimated distance between the place of dispatch and the destination, affecting the validity period of the E-Way Bill.
- Transport Document Number – If moving goods via rail, air, or sea, the bill of lading, airway bill, or railway receipt number is required.
Documents Needed for E-Way Bill Generation
To generate an E-Way Bill, businesses must have:
- A valid GST registration for generating bills on the GST portal.
- A tax invoice, bill of supply, or delivery challan for the goods being transported.
- Transport details, including the Transporter ID or vehicle number.
- In the case of movement by air, rail, or ship, the respective transport document (bill of lading or consignment note).
- Failure to generate an E-Way Bill when required can lead to penalties and seizure of goods, making compliance critical for businesses.
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How to Generate an E-Way Bill Online
Step 1: Access the E-Way Bill Portal
To begin, visit the E-Way Bill System and log in using your GSTIN, username, and password. If you are a transporter without GST registration, you need to enroll on the portal and obtain a Transporter ID before proceeding.
Step 2: Navigate to the 'Generate E-Way Bill' Option
Once logged in, go to the E-Way Bill dashboard and select ‘Generate New’ to start the process.
Step 3: Enter Necessary Details
The system will prompt you to fill in the required fields:
- Transaction Type – Choose Outward (if you are the supplier) or Inward (if you are the recipient).
- Sub-Type – Specify the reason for the goods' movement (Supply, Export, Import, Job Work, etc.).
- Document Type – Select Invoice, Bill of Supply, or Challan as applicable.
- Document Number & Date – Enter the invoice number and issue date.
- Supplier & Recipient Details – Provide GSTIN, trade name, and address for both parties.
- Item Details – Fill in HSN code, quantity, taxable value, and applicable tax rates (CGST/SGST/IGST).
- Mode of Transport & Transporter ID – If goods are transported by road, enter the Vehicle Number; if by rail, air, or ship, provide the Transport Document Number.
Step 4: Generate and Verify the E-Way Bill
After entering the details, click ‘Submit’. The system will generate a 12-digit E-Way Bill Number (EBN). You can either print the bill or download a digital copy. Ensure the bill accompanies the shipment throughout transit.
For more details, refer to the E-Way Bill Portal User Manual.
Validity and Format of E-Way Bills
How Long is an E-Way Bill Valid?
The validity of an E-Way Bill depends on the distance traveled by the goods.
For Regular Cargo (Normal Vehicles):
- Up to 200 km – Valid for 1 day.
- Every additional 200 km – Extends validity by 1 day.
For Over-Dimensional Cargo (ODC):
- Up to 20 km – Valid for 1 day.
- Every additional 20 km – Extends validity by 1 day.
- The validity starts from the time of generation and can be extended if transport is delayed due to unavoidable reasons.
| State | E-Way Bill Threshold Limit | Notes |
|---|---|---|
| Andhra Pradesh | ₹50,000 | Applicable for all taxable goods |
| Arunachal Pradesh | ₹50,000 | Applicable for all taxable goods. |
| Assam | ₹50,000 | Applicable for all taxable goods; temporarily suspended for intra-state movement in some cases. |
| Bihar | ₹1,00,000 | Applicable for both taxable and non-taxable goods. |
| Chattisgarh | ₹50,000 | Required only for 15 specified goods. |
| Delhi | ₹1,00,000 | Necessary for both taxable and non-taxable goods. |
| Goa | ₹50,000 | Required only for 22 specific goods. |
| Gujarat | ₹50,000 | Not applicable to transport any goods excluding specified goods category for job work. |
| Haryana | ₹50,000 | Mandatory for all taxable goods. |
| Himachal Pradesh | ₹50,000 | Mandatory for all taxable goods. |
| Jammu & Kashmir | No e-way bill required | Not applicable for transporting goods within the Union Territory. |
| Jharkhand | ₹1,00,000 | For all goods excluding the specified ones. |
| Karnataka | ₹50,000 | Applicable for all taxable goods. |
| Kerala | ₹50,000 | Applicable for all taxable goods. |
| MP | ₹1,00,000 | Required for specified 11 goods. |
| Maharashtra | ₹1,00,000 | Applicable for all taxable goods. |
| Manipur | ₹50,000 | Applicable for all taxable goods. |
| Meghalaya | ₹50,000 | Applicable for all taxable goods. |
| Mizoram | ₹50,000 | Applicable for all taxable goods. |
| Nagaland | ₹50,000 | Applicable for all taxable goods. |
| Odisha | ₹50,000 | Applicable for all taxable goods. |
| Puducherry | ₹50,000 | Applicable for all taxable goods. |
| Punjab | ₹1,00,000 | Applicable for all taxable goods. |
| Rajasthan | ₹50,000 to ₹1,00,000 | Applicable for all taxable products, except those under Chapter 24 and Heading 2106. |
| Sikkim | ₹50,000 | Applicable for all taxable goods. |
| Tamil Nadu | ₹1,00,000 | Applicable for all taxable goods. |
| Telangana | ₹50,000 | Applicable for all taxable goods. |
| Tripura | ₹50,000 | Applicable for all taxable goods. |
| Uttar Pradesh | ₹50,000 | Applicable for all taxable goods. |
| Uttarakhand | ₹50,000 | Applicable for all taxable goods. |
| West Bengal | ₹1,00,000 | Applicable for all taxable goods. |
Note: The above information is based on data available as of the latest updates. For the most current details, please refer to official state notifications or the E-Way Bill portal.
How to Verify or Check E-Way Bill Status
Follow these simple steps to verify the status of an E-Way Bill:
1. Visit the official E-Way Bill portal.
2. Enter your User ID, password, and captcha code to access your account.
3. Click on the ‘Reports’ section in the main menu.
4. Choose from options like:
‘EWB Generated by Me’ (bills you created)
‘EWB Generated by Others’ (bills where you are the recipient)
‘Outward Supply’ (for transport-related tracking)
5. Provide the E-Way Bill number, date range, or document number to search for a specific bill.
6. Check the displayed details, including: Validity period, Current status (Active, Expired, or Canceled), Transaction details
Objectives of the E-Way Bill
The E-Way Bill system under the Goods and Services Tax (GST) regime was introduced with several key objectives:
- Streamlined Movement of Goods: Implementing a single E-Way Bill for the entire country facilitates hassle-free transportation of goods across state borders, eliminating the need for separate transit passes in each state.
- Reduction in Tax Evasion: By mandating the generation of E-Way Bills for consignments exceeding a certain value, the system aims to curb tax evasion by ensuring that goods movements are accurately reported and monitored.
- Efficient Tracking: The digital nature of the E-Way Bill allows for real-time tracking of consignments, enhancing transparency and accountability in the supply chain.
- Simplified Compliance: The system reduces the physical interface between taxpayers and tax authorities, promoting a self-declaration model that simplifies compliance procedures.
Cases When an E-Way Bill is Not Required
While the E-Way Bill is mandatory for the transportation of goods exceeding ₹50,000 in value, there are specific scenarios where its generation is exempted:
- Non-Motorized Transport: Goods transported using non-motorized conveyances, such as bullock carts or manual rickshaws, do not require an E-Way Bill.
- Specified Goods: Certain goods are exempted from the E-Way Bill requirement, including: alcoholic liquor for human consumption, petroleum products like crude oil, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel, goods classified as no-supply under Schedule III of the CGST Act
- Customs Bonded Goods: Goods transported under customs supervision or under customs seal are exempted from the E-Way Bill requirement.
- Government Transportation: Goods transported by the Central Government, State Governments, or local authorities by rail are exempt from the E-Way Bill mandate.
- Intra-State Movement: Some states have specific exemptions for the movement of goods within notified areas or for particular goods. It's essential to refer to state-specific notifications for precise information.
FREQUENTLY ASKED QUESTIONS:
1. What are the components of an E-Way Bill?
An E-Way Bill consists of two main parts: Part A and Part B. Part A includes details such as the GSTIN of the supplier and recipient, invoice number, date, value of goods, HSN code, and the reason for transportation. This part is primarily filled out by the supplier or recipient. Part B contains details about the transporter, including the vehicle number or transporter ID, which is essential for tracking goods in transit.
2. When Should an E-Way Bill be issued?
An E-Way Bill must be generated before the transportation of goods begins. It is mandatory when the value of goods being transported exceeds ₹50,000, whether for supply, job work, inward supply from an unregistered person, or any other movement requiring compliance under GST. The bill must be generated before goods leave the premises to ensure compliance with GST regulations.
3. Who should generate an E-Way Bill?
The responsibility for generating an E-Way Bill depends on who is moving the goods. If the supplier is registered under GST, they must generate the bill before dispatching goods. If an unregistered supplier is transporting goods to a registered recipient, the recipient must generate the bill. In cases where a transporter is moving goods, they must generate the bill if neither the supplier nor recipient has done so.
4. When is an E-Way Bill not required?
There are specific exemptions where an E-Way Bill is not needed. Goods transported using non-motorized vehicles like carts and bicycles do not require an E-Way Bill. Additionally, certain goods such as crude oil, alcoholic beverages, natural gas, and exempted goods listed under GST rules are not subject to E-Way Bill requirements. Moreover, goods transported within a notified area within a state or under customs supervision (such as those moving under a customs bond) do not require an E-Way Bill.
5. How to change the mobile number in the E-Way Bill portal?
To update your registered mobile number on the E-Way Bill portal, log in to your GST account and navigate to ‘My Profile’. Click on ‘Update Mobile Number’, enter the new number, and verify it with an OTP sent to the old registered mobile number. Once verified, submit the request, and your mobile number will be updated successfully.
6. How to change the E-Way Bill password?
If you have forgotten your password or want to change it for security reasons, visit the E-Way Bill Portal and click on ‘Forgot Password’. Enter your GSTIN, username, and registered mobile number, and an OTP will be sent to your phone. Enter the OTP, reset your password, and log in using the new credentials.
7. How to cancel an E-Way Bill after 24 hours?
An E-Way Bill can only be canceled within 24 hours of generation. If 24 hours have already passed, cancellation is not possible. However, the supplier or recipient can generate a credit note or initiate a goods return to rectify the transaction. If the bill was generated by mistake, it is advisable to notify the tax authorities to avoid compliance issues.
8. What are the rules for the E-Way Bill?
The E-Way Bill rules under Rule 138 of the CGST Act specify that an E-Way Bill is mandatory for goods worth ₹50,000 or more. It must be generated before goods are moved, and the transporter must ensure that the bill is carried during transit. Non-compliance with these rules can result in penalties, seizure of goods, and fines. The validity of an E-Way Bill depends on the distance traveled, and modifications to the bill are only allowed before the journey begins.
9. What are the four types of E-Way Bills?
There are four types of E-Way Bills based on the nature of the transaction:
- Regular E-Way Bill – Used for standard supply transactions where the supplier and recipient are directly involved.
- Bill-to-Ship-to E-Way Bill – Applicable when the buyer (B) and the actual consignee (C) are different entities.
- Job Work E-Way Bill – Used when goods are sent to another entity for job work or processing.
- Exempted Goods E-Way Bill – Required for specific goods that are exempt under GST but still need tracking for interstate movement.
10. How does the E-Way Bill system in India work?
The E-Way Bill system is an electronic tracking mechanism where businesses generate a bill before transporting goods. The supplier or transporter enters the details on the E-Way Bill portal, and the system assigns a 12-digit E-Way Bill Number (EBN). The transporter must carry the bill (either digitally or physically) to ensure compliance during transit. Tax authorities may verify the bill using RFID or manual checks, and any discrepancies can result in penalties.
11. How to generate an E-Way Bill on the portal?
To generate an E-Way Bill, visit the E-Way Bill portal, log in, and select ‘Generate New’ from the dashboard. Enter the transaction details, including invoice number, GSTINs of the supplier and recipient, HSN code, and transporter details. After entering the details, click ‘Submit’, and the system will generate a 12-digit E-Way Bill Number (EBN). The bill should accompany the consignment throughout transit.
12. How to generate an E-Way Bill via SMS?
The SMS-based E-Way Bill generation feature allows transporters to generate a bill on mobile without accessing the portal. To use this feature, the transporter must first register their mobile number on the E-Way Bill portal. After registration, send an SMS in the required format to the designated number provided by the GST department. You will receive a confirmation message with the E-Way Bill Number (EBN).
13. What is the time limit to generate an E-Way Bill?
The E-Way Bill must be generated before goods leave the supplier’s premises. If the bill is not generated on time, the movement of goods may be deemed illegal, leading to penalties.
14. What is the validity of an E-Way Bill?
The validity of an E-Way Bill is determined based on the distance traveled by the goods. For regular cargo (vehicles), the bill is valid for 1 day for every 200 km traveled. For over-dimensional cargo (ODC), the validity is 1 day for every 20 km traveled. If the transportation takes longer due to unforeseen circumstances, the validity can be extended before expiry.
