An e-Way Bill under the Goods and Services Tax is a document generated electronically on the GST portal.
e-Way Bill (EWB) is required for the movement of goods worth over a specified value. EWB contains details about the goods being transported, including the consignor, consignee, and vehicle information.
Failure to carry a valid e-Way Bill can result in penalties and fines during transport inspections.
In this article, we will be discussing things that a registered person should know about GST e-Way Bills before moving goods.
When is the e-Way Bill (EWB) a must under GST?
An e-Way Bill under GST is required to be generated when the value of goods moved exceeds 50,000 rupees.
There must be a movement of goods from one place to another either within the same state (intra-state) or across state borders (inter-state).
Goods can be transported by road, rail, air, or waterways.
What GST e-Way Bill (EWB) contains?
The GST e-Way Bill (EWB) is divided into two parts: Part A and Part B.
Part A basically contains the following key information:
- A unique number generated for tracking;
- Date of the document;
- Name, address, and GSTIN of the supplier;
- Name, address, and GSTIN of the recipient;
- Description of the goods;
- HSN (Harmonized System of Nomenclature) code;
- Quantity and value of goods;
- Purpose of the movement such as supply, return, or job work.
Part B of a GST e-Way Bill contains the following key information:
- Name of the transporter;
- Transporter ID (if registered) or vehicle number;
- Mode of transport (road, rail, air, etc.);
- Vehicle number used for transport;
- Whether the goods are transported by hired or owned vehicle;
- Place from which goods are being dispatched;
- Place to which goods are being delivered.
Please note, if there is a mistake, incorrect or wrong entry in the e-Way Bill, then it cannot be edited or corrected.
Only option is to cancel the e-Way Bill and generate a new one with correct details.
GST e-Way Bill (EWB) in case of multiple invoices
If multiple invoices are issued by the supplier to the recipient, that is, for movement of goods of more than one invoice of the same consignor and consignee, multiple e-Way Bills have to be generated.
That is, for each invoice, one e-Way Bill has to be generated, irrespective of the fact whether same or different consignors or consignees are involved.
Multiple invoices cannot be clubbed to generate one e-Way Bill.
However after generating all these e-Way Bills, one consolidated e-Way Bill can be prepared for transportation purposes, if goods are going in one vehicle.
Documents required for movement of goods along with e-Way Bill (EWB)
The person in charge of the conveyance shall carry any one of the following documents as the case may be and a copy of the e-Way Bill generated from the GST portal.
- Tax Invoice: In case of taxable supply other than composition dealer and Input Service Distributor (ISD).
- Bill of Supply: In case of exempted supply, and a supplier of goods who has opted for composition scheme
- Delivery Challan: In case of reasons otherwise than for supply
- Bill of Entry: In case of Imports
- Debit Note/Credit Note: In case of any amendment in transaction
- Delivery Challan: Specific Transactions like job-work, stock transfer, movement of goods for exhibition etc.,
- Self-Invoice: Inward Supplies attracting reverse charge mechanism (RCM).
The e-Way Bill plays a significant role in the overall efficiency of the GST system.
Also Read: What is the purpose of raising different types of invoices under GST?
Validity for GST e-Way Bill
Validity of the e-Way Bill depends upon the distance the goods have to be transported.
The validity period of the e-Way Bill is calculated based on the ‘approximate distance’ entered while generating the e-Way Bill (EWB).
For every 100 Kms one day is a validity period for e-Way Bill and for part of 100 KM one more day is added.
For example, If the approximate distance is 310 Kms then the validity period of the e-Way Bill is 3+1 days.
For movement of over dimensional cargo (ODC), the validity is one day for every 20 KM (instead of 100 KM) and for every 20 KM or part thereof one more day is added.
And this validity expires at midnight on the last day.
This can be explained by following examples –
Suppose an e-Way Bill is generated at 00:04 hrs. on 14th March. Then the first day would end at 12:00 midnight of 15 -16 March. Second day will end at 12:00 midnight of 16 -17 March and so on.
Suppose an e-Way Bill is generated at 23:58 hrs. on 14th March. Then the first day would end at 12:00 midnight of 15 -16 March. Second day will end at 12:00 midnight of 16 -17 March and so on.
How to extend the validity of the GST e-Way Bill?
The validity of the e-Way Bill starts when the first entry is made in Part-B i.e. vehicle entry is made first time in case of road transportation or first transport document number entry in case of rail/air/ship transportation, whichever is the first entry.
It may be noted that validity is not re-calculated for subsequent entries in Part-B.
If the validity of the e-Way Bill expires, the goods are not supposed to be moved.
However, under circumstances of ‘exceptional nature and trans-shipment’, the transporter may extend the validity period after updating the reason for the extension and the details in PART-B of FORM GST EWB-01.
One can extend the validity of the e-Way Bill, if the consignment is not reaching the destination within the validity period due to exceptional circumstances like natural calamity, law and order issues, trans-shipment delay, accident of conveyance, etc. In this case, the transporter needs to explain the reason in detail while extending the validity period.
The option to extend the validity period of e-Way Bill is available for before 4 hours and after 4 hours of expiry of the validity.
The transporter will enter the e-Way Bill number and enter the reason for requesting the extension, from place (current place), approximate distance to travel and Part-B details.
Part-A details cannot be changed. You will get the extended validity based on the remaining distance to travel.
If the vehicle breaks down, when the goods are being carried with an e-Way Bill, then the transporter can get the vehicle repaired and continue the journey in the same e-Way Bill.
If he has to change the vehicle, then he has to enter the new vehicle details in that e-Way Bill (EWB) by using ‘Update vehicle number’ option in Part B on the e-Way Bill portal and continue the journey in the new vehicle, within the original validity period of EWB.
The user can update Part-B of the e-Way Bill (Vehicle details) as many times as he wants for movement of goods to the destination. However, the updating should be done within the validity period.
The authorized transporter can assign the e-Way Bill to any enrolled or registered transporter for further transportation of the goods. Subsequently, the new transporter can only update the Part-B of the e-Way Bill (EWB).
Some of the consignments move from one place to another place till they reach their destinations. Under this circumstance, each time the consignment moves from one place to another, the transporter needs to enter the vehicle details using ‘Update Vehicle Number’ option in part B of the e-Way Bill (EWB), when he starts moving the goods from that place.
The transporter can also generate ‘Consolidated e-Way Bill’ with the EWB of that consignment with other EWBs and move the consignment to the next place.
This has to be done till the consignment reaches destination. But it should be within the validity period of a particular e-Way Bill (EWB).
Can a GST e-Way Bill be cancelled or deleted?
The GST e-Way Bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation.
If a particular e-Way Bill (EWB) has been verified by the proper officer, then it cannot be cancelled.
Further, e-Way Bills can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-Way Bill.
The e-Way Bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-Way Bill. The e-Way Bill can be cancelled within 24 hours from the time of generation.
Consolidated e-Way Bill
A transporter can generate the consolidated e-Way Bills for movement of multiple consignments in one vehicle.
A Consolidated e-Way Bill is a document containing the multiple e-Way Bills for multiple consignments being carried in one conveyance (goods vehicle).
That is, the transporter, carrying multiple consignments of various consignors and consignees in one vehicle can generate and carry one consolidated e-Way Bill instead of carrying multiple e-Way Bills for those consignments.
The e-Way Bill is a crucial mechanism under GST law that helps in tracking the movement of goods, ensuring compliance, and reducing tax evasion.
Frequently Asked Questions (FAQs)
What is the e-way bill in GST?
e-Way Bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees. It should be carried along with a tax invoice or any other legal GST document as discussed above which proves that supply takes place.
What is the limit of GST on E-Way bill?
A registered person cannot transport goods in a vehicle whose value exceeds Rs 50,000 without an e-way bill.
This applies to the movement of goods between any two places in India.
If the value of the goods being transported exceeds 50,000 rupees, an e-Way Bill must be generated.
Applies to all interstate and intrastate movements of goods.
Who is responsible for the e-Way bill?
If the transportation is done using their own or hired conveyance (like trucks, vans, etc.), the consignor (seller) or consignee (buyer) must generate the E-Way Bill.
If the goods are handed over to a transporter for transportation by road, then the transporter is responsible for generating the E-Way Bill.
The e-Way Bill must be generated before the goods are dispatched.
The e-Way Bill is valid for a certain period depending on the distance of the journey.
It is mandatory for the movement of goods exceeding the threshold limit of 50,000 rupees.
What is the main purpose of EWB?
The main purpose of the e-Way Bill is to facilitate the smooth movement of goods under the Goods and Services Tax (GST) regime.
The e-Way Bill helps authorities track the movement of goods and ensure compliance with tax regulations. By documenting the movement of goods, it reduces the chances of tax evasion and ensures that the correct GST is paid
EWB helps in maintaining compliance with GST regulations and simplifies the procedures for transporters and businesses.
What is the difference between the GST bill and e-way bill (EWB)?
The GST Bill and e-Way Bill serve different purposes within the Goods and Services Tax (GST) framework in India.
The GST Bill is an invoice or document issued by a supplier when selling goods or services. It outlines the transaction details, including the tax charged.
The GST bill provides a formal record of supply, enables the buyer to claim input tax credit (ITC), and details the tax liabilities of both the seller and buyer. A GST Bill is mandatory for every supply transaction under the GST regime.
The e-Way Bill is a digital document generated for the movement of goods worth more than 50,000 rupees. It serves as proof of the movement of goods.
EWB helps to track and regulate the transportation of goods, prevent tax evasion during transport., and facilitate smooth movement across state borders and checkpoints. EWB contains details like the type of goods, their value, transporter information, origin, and destination.
EWB Mandatory when transporting goods exceeding the specified threshold value, regardless of whether a GST Bill is issued. EWB should be carried along with a GST Bill.
What is the primary role of a transporter in the e-Way bill process?
Here are the key responsibilities of transporters regarding the GST e-Way bill:
- Transporters must ensure that a valid e-Way bill is generated before transporting goods. They should verify the details such as GSTIN, vehicle number, and the goods being transported.
- A physical or digital copy of the e-Way bill must be carried during transit. If the goods are being transported by road, the transporter should have this document readily available for inspection by tax authorities if required.
- Transporters need to maintain records of all e-Way bills generated for the goods they carry. This is essential for compliance and for any audits or inspections.
- If there are changes in the vehicle transporting the goods (for instance, if a different vehicle is used midway), the transporter must update the e-Way bill with the new vehicle details.
- Transporters should comply with any specific conditions mentioned in the e-Way bill, such as the time frame for transportation and the route to be taken. They must ensure adherence to all relevant GST regulations.
- During transportation, if stopped by tax authorities, transporters should cooperate and provide the e-Way bill and any related documents as required.
