Learn More about E-Way Bill, Its Applicability and Generation Process

Managing the seamless movement of goods from one place to another is essential for an entrepreneur. However, the Indian government has some rules and regulations with which every businessperson has to comply with. Otherwise, no supply chain will work prominently to deal with the business prominently. Paperwork delays and creates a lot of confusion along with the clarity of the system. This is where the requirement of an e-way bill system has been inaugurated. The e-way bill is generated under the GST framework of the Indian government.

It ensures the consignment is properly documented and makes the entire process transparent to all. As the process is online, everybody can check it easily through the e-way bill number. But what is an e-way bill, and how does it work in the transport framework? Let’s learn.

What is an E-Way Bill?

E-way bills or electronic way bills are required when goods are subject to GST and the price of the product in the single invoice exceeds 50,000 rupees. Without e-way bills, goods cannot be transported from one place to another. The bills must be generated from ewaybillgst.gov.in.

During e-waybill regeneration, you have to put the vehicle number that moves the goods to the shipyard. Then, you have to enter the goods that you have to transfer. You can also generate it from the relevant application, “NIC - Shield App”. The e-way bill will be generated after providing pertinent information. The recipient will get it. This bill is the proof of information about where the goods are moving or which direction it is moving.

What information do you need to include in an e-Way bill?

An E-way bill contains two parts with a set of information through Part A and Part B.

Part A

• Invoice or challan number and date
• Value of goods
• Details of GSTIN of recipient
• HSN code
• Place of delivery (PIN Code)
• Reasons for transportation
• Transport documentation (Railway Receipt Number Goods Receipt Number Bill of Lading Number Airway Bill Number)

Part B 

In the part B section, you have to put the details of transport and the mode of transport.

When an e-way bill generation is required?

An eWay bill or electronic way bill generation is issued in the following scenarios under the goods and services tax regime:

1. Goods Movement

When any business needs inter or intra-state goods movement is required, an e-way bill is required to generate. However, the value must cross the threshold amount ? 50,000/-. The meaning of interstate means to cross the border of a state and intra-state means to send goods to anywhere in the state. The threshold balance of both scenarios is the same as mentioned.

Specified Categories of Goods

• There are some scenarios where the value of goods is less than ?50,000, and e-way bill generation is mandatory. Learn the scenarios:
• When any goods are required to be transported through airways, railways, or waterways.
• Precious metals like gold, silver, platinum, or similar other metals are required to transport from one place to another, and eWay bill generation is required.
• Transporting any type of handicraft items requires an e-way bill.

2. Specific Scenarios Requiring eWay Bill

• When goods need to be supplied from one GST-registered entity to another GST-registered entity or the final destination, E-way bills are essential.
• If the consumer returns the goods to the supplier every bill is required.
• When the goods are for consignment transfer within the same business entity but in a different location such as warehouse transfer from the outlet or vice versa, bill generation is required.
• Intra-state sales or purchases, you must require eWay bills.

3. Third-party transportation

If any third-party involvement is required for goods transport, an eway bill is required to generate.

If the goods are sent to the factory for job work for processing, repairing or mending, an eway bill is required.

4. Barter or Exchange

When the goods are paid in exchange for other goods and not money, E-way bills are essential to generate.

Exceptions of e-way bills

If any business transfers goods through non-motorized vehicles, e-way bills are not required. Transporting. So, transportation via bullock carts, handheld vehicles, handcarts, and similar other vehicles do not require generating E-way bills.

In some cases, Transportation via Rail, Air, or Waterways does not require e-way bills as they have their own mechanism for generating e-way bills. You have to keep in mind that the waybill generation is mandatory before the movement of goods is required.

Who should generate an e-way bill?

Some category of people requires generating eWay bills. Let’s learn them.

• Registered person

Eway bills must be generated when a GST-registered person transports the goods of more than ?50,000/-. During the transport, an e-way bill is required. A registered person can also voluntarily generate an e-way bill for goods less than ?50,000/-

• Unregistered Person

When the consignment value is more than ?50,000/- and it is going to a registered person, GST e-way bill generation is required. Usually, the consignee creates the e-way bill.

• Transporter

Usually, consignment transporter usually does not require generating e-way bills. However, some transporters such as rail, airways, or waterways generate E-way bills when the consignment does not have it but they fulfill the criteria. These transporters have a special framework to generate E-way bills.

• Person

If the aggregate or single item costs more than ?50,000/-, E-way bill generation is regarded. The document requires a Tax Invoice or Delivery challan or Bill of supply.

The transporter who is not registered will be provided a transporter ID while enrolling the vehicle on the waybill.

The requirements of eWay bills are simplified here:

When e-Way bill is Not Necessary?

There are several factors when e-Way bill generation is not necessary. Let’s learn them.

• If the mode of transport is a non-motor vehicle such as a bullock cart, pulling van, and so on.
• Goods transported from airport, Customs port, land customs station, or air cargo complex to Container Freight Station (CFS) or Inland Container Depot (ICD) for clearance by Customs.
• If goods are transported under the supervision of customs or have a custom seal, there is no requirement for an e-way bill. 
• If goods transpiration happened under the bond of customs from ICD (Inland Container Depot) to a customs port or from one customs station to another customs station, this bill is not required.
• If any transit cargo transports goods to or from Bhutan or Nepal, e-way bill generation is not mandatory. 
• Movement of goods for defense purposes by the Ministry of Defense as a consignee or consignor.
• When empty cargo is moving from one place to another place, there is no need to generate an e-Way bill.  
• If any consignor sends goods to his business area for weighing within a 20km radius with a delivery challan, they need not require e-Way bill generation.
• If the goods are moving through railway transport and the goods are from the central government, state government, or any local government authority, the consignment does not require an e-Way bill.
• If the goods are from a state or union territory, and the consignment is exempted from GST bill l, it does not require an e-way bill.
• Transport of Certain Goods which are exempted from e-way bill according to Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications. Those things are not liable to generate e-way bills.
• Part B of an e-way bill is not required when the distance between a consignee and consignor is less than 50 km within the same state.

State-Wise E-Way Bill Rules and Limits

Interstate movement of goods is increasing day by day and several e-way bill generation has been noticed over time. So, you must learn e-way bill generation rules in different states. Many states and Union Territories are also enlisted in e-Way bill generation for the movement of goods within or across the state or UT.

However, some states do not require e-way bill generation. If you notice the state of Tamil Nadu has exempted people from generating e-way bills when the bill amount of goods is below 1 lac. Look at the following chart where the threshold limit is not Rs. 50,000/- for generating e-way bills.

You can also check the details on the government site of all states or UTs website about GST and e-waybill criteria:

How to generate an e-way bill on the portal

E-way bill with an e-way number can be generated through the government portal after successful login. So, create an account by using the details along with the email ID and mobile number. You have to follow the steps that the portal suggests.   

• Visit e-way bill portal  
• Then hover the cursor on “Registration”
• Choose your option and chick
• The “generate new” e-way bill
• Select transaction type as OUTWARD if you are a supplier. If you are a recipient, you have to select INWARD.
• According to the transaction type, you have to select the sub-type.
• Select document type: bill/credit note/challan, etc.
• Document number: Fill out the bill or invoice number
• Document date: Mention the Document Date in the niche, future date is not allowed
• From/To: Depending on the type of customer (supplier or recipient), you have to select the section.
• GSTIN: If any person is unregistered but needs an e-way bill, they should select URP in the section.
• Put down the Item details, such as Product name, Description, HSN Code, Quantity, Unit, Value/Taxable value, Tax rates of CGST and SGST or IGST (in %), the Tax rate of CESS, if any charged (in %).

Then get your EWay bill with a number.

E-way bill generation through SMS

You can generate an e-way bill by using SMS on your registered mobile number. For this, the users need to activate sms e-way bill generation facility. For it, you have to visit the mentioned web portal for e-waybill generation. A simple sms code on your mobile can create an eWay bill number.

• Visit the site hover the cursor on the REGISTRATION and click on “FOR SMS”.
• You have to mention the email ID and Mobile number in the niche
• Enter the OTP that reached the mobile number and press on Verify OTP
• You have to keep in mind that only the mobile numbers will be activated which are registered on the website.
• Then, select the user ID (If there are many IDs, select the ID you want to use for e-way bill generation)
• Enter the mobile number in the niche and check the status of whether the mobile number is active or not.

Send an SMS to generate an e-way bill, here is the format:

Keep the format intact-

EWBG TranType RecGSTIN DelPinCode InvNo InvDate TotalValue HSNCode ApprDist Vehicle

• Don’t use any extra space, only one space needs to be given.
• Put the entire details of the details.
• Send the SMS to 7738299899

Example:

If MR SAXENA of Bangalore, Karnataka wants to deliver goods worth Rs. 2,00,000 bearing HSN code-8870, invoice number- 2009, dated 30/12/2024 to Mr. Bhaskar, Karnataka through vehicle number KA 40 AB 1234, the distance is 80 km, the SMS would be the following: 

MR SAXENA will create:

EWBG OSUP 29AABPX0892K1ZK 560021 2009 30/12/2024 200000.00 8870 80 KA40AB1234”

Then, send the SMS to the mentioned 7738299899

After sending the SMS, if no error message is received, you will get an e-way bill number that looks like: “193000000864 dated 30/12/2024 at 01:58:12 PM and having validity up to 31/12/2024 for doc/inv no 2009”.

Validity of e-Way Bill:

Documents required for generating e-way bill:

• Invoice or bill or challan of goods with a number
• Transport by Road: Vehicle Number or Transporter ID
• Transported by air, rail, or waterways: transporter ID, transport document date and number
• During the movement of the vehicle, any appointed officer for the purpose can be blocked for verification for checking documents as well as for the inspection of goods or e-way bills.

Frequently Asked Questions for E-Way Bill

1. What is the charge or generating e-way bill?

The gendering e-way bill is free in India. The Goods and Services Tax Network (GSTN) provides e-way bills on request to the portal: www.ewaybillgst.gov.in. Even, there is no charge for canceling or modification of charges.

However, the transporting authority may choose a third-party application or service provider to generate an e-way bill. They may charge you as per their criteria.

2. Can I generate one e-way bill for 2 invoices?

No, you cannot. You can merge e-way bills for two or more invoices. 

3. Should I generate any e-way bills against any supply service?

No, you do not need to apply for generating e-way bills against any supply service.

4. Do I need an e-way bill for transporting goods in a 10 km radius to a recipient?

No, you do not require generating any e-way bills when the product reaches a 10 km distance in the state or territory. The distance limit for goods transport within the state is 50km. Surroundings. 

5. How many days you can take after generating an invoice?

If you have delayed delivery, you do not require generating e-way bills previously. Generate an e-way bill when you are ready to ship the goods.

6. What is the responsibility of the transporter to generate an e-way bill?

When a transporter needs to carry the e-way bill when a consignee or consigner sends or receives goods. The goods are carried by rail, air, or ship and have their specific e-way bill generation facility. So, if the consignor or consignee does not have an e-way bill generated, they have their special framework for generating an e-way bill.

7. How many e-way bills are required to generate to transport a consignment to the customers when the transporter changes? (Usually, different transporters have different transport IDs)

The e-way bills must be one but the transporter details need to be updated whenever transporters change. The users need to create different delivery challans against different transporter IDs for the single invoice.

8. What is the meaning of “Value of Consignment of Goods”?

The invoice value or the aggregate invoice value denotes the Value of the Consignment of Goods. If the single invoice or aggregate amount exceeds the amount of ?50,000/- or more (in some states or UT), the consignee or consignor needs to generate an E-way bill.

9. What do you mean by invoice value?

Invoice value means the cost for purchase mentioned in the invoice including GST excluding the value of the exempted goods added to the bill.  

10. If per customer per day exceeds ?50,000/-, do they require e-way bills for each?

If the supplier himself is the transporter, he is required to generate e-way bills for each of the invoices. If the transporter and the supplier are not the same, the transporter needs to generate e-way bills against all invoices carried in the vehicle.

11. What do you mean by “SKD/CKD” and “Line Sales” when you select Outward supply subtype selection?

CKD/SKD means “Completely Knocked Down” condition and “Semi Knocked Down” condition. "Line Sales" refers to the specific details of each item or product being transported. The e-way bill requires information about the goods, and this is captured under "line items," which are essentially individual rows in the bill detailing each product or package.

12. How can I download the e-way bill?

To download the e-way bill, you have to log in to the e e-way bill portal and download it by clicking on Print EWB under the dropdown menu of the “E-Way Bill” tab.

13. How do I cancel an e-way bill?

Visit the e-way bill portal Goods and Services Tax E - E-Waybill System, and cancel your e-way bill. It costs nothing.

14. How can I modify, reject, or edit E-Way bills under GST?

Visiting the e-waybill portal, you can generate modify or cancel the e-way bill.

Modification or any editions in the already generated E-way bill is possible.

15. Can I generate an e-way bill without a GST number?

Only a person having a GSTIN can generate an e-way bill. If the supplier is new or does not have GSTIN, the consignee is required to generate an e-way bill as an INWARD selection during the form filled out during e-way bill generation.

16. Can I generate bulk e-way bills?

Yes, you can generate bulk e-way bills by visiting the e-way bill generation portal and then finding the option bulk E-WAY BILL GENERATION. Enter the date of the bill required and get it.