eWay Bill: Definition, Rules, & Process | IIFL Finance (2024)

Learn about eWay bill: its purpose, structure, rules, applicability, who needs it, and how to generate it easily in this complete guide now.

26 Apr, 202414:26 IST172

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eWay Bill: Definition, Rules, & Process | IIFL Finance (1)

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What is eWay Bill?

The electronic way bill serves as a compliance tool to regulate the transportation of goods and commodities. The individual who starts the movement of the goods creates an eWay bill on the GST site by uploading the necessary data using a digital interface, which is the official site: ewaybillgst.gov.in. eWay bills are generated prior to the start of the items' transportation.

Whenever an eWay bill is generated, a unique Eway Bill Number (EBN) is allocated and readily available to all three connected parties: the supplier, the recipient, and the transporter.

Why was the eWay bill introduced?

The implementation of the eWay Bill system was meant to facilitate seamless movement of goods across the nation. It serves as an important instrument for monitoring the transit of goods, thereby stopping the prevalence of fake invoices and keeping a check on tax evasion within the country.

Structure of an eWay bill

If you are wondering how to create an eWay bill, remember that the eWay bill has been divided into two parts, namely, Part A and Part B, and the details are furnished in FORM GSTEWB-01:

  • Part A requires the information of the GSTIN of the supplier and recipient, place of dispatch and delivery, document number, document date, the value of the goods, HSN code, and reason for transportation.
  • Part B requires a vehicle number for road transport (not for rail and or air or vessels) & document numbers like temporary vehicle registration number or defence vehicle number.

Every registered person under GST fills out Part A of the form to an eWay bill. Part B of the form is filled out by the recipient of the goods, the consignor, or the consignee.

If the recipient is an unregistered person, he shall generate an eWay bill and complete the rules as if he were the supplier.

Consolidated eWay bill

In cases where the transporter is moving more than one consignment through a single conveyance or vehicle, he/she needs to use Form GSTEWB-02 to produce a consolidated eWay bill. The transporter must have all the individual eWay bills of all the goods in order to create a consolidated eWay bill.

When is an eWay bill applicable?

The eWay bill system applies within a state as well as between different states during the transportation of goods or commodities. When it is an intra-state movement, individual states have the authority to alter its implementation in accordance with GST regulations.

Under the CGST Act 2017, the definition of supply for the eWay bill mechanism includes:

- All types of transactions involving goods or services, including sale, barter, exchange, transfer, rental, lease, license, or disposal,

- Transactions conducted for consideration in the course of business,

- Transactions conducted for consideration outside the course or furtherance of business, and

- Transactions conducted without any consideration.

Who Should Generate an eWay Bill?

  • An eWay bill must be generated when goods of more than Rs 50,000 in value are moved to or from a registered person. You can say the eWay bill is the said amount. However, a registered person or the transporter may choose to generate and carry an eWay bill despite the value of goods being less than Rs 50,000.
  • Unregistered persons are also required to generate an eWay Bill. However,where an unregistered person delivers a consignment to a registered person, the receiver must ensure all the compliances have been adhered to as if they were the supplier.
  • Transporters who are moving goods by road, air, rail, etc., also need to generate an eWay Bill if the supplier has not done so.

Who is Not Required to Generate an eWay Bill?

The transporters need not generate the Eway bill (as Form EWB-01 or EWB-02) where all the consignments in the conveyance :

  • Individually (single document**) is less than or equal to Rs 50,000 BUT
  • In Aggregate (all documents** put together) exceeds Rs 50,000

**Document means Tax Invoice/Delivery challan/Bill of supply


Unregistered Transporters will be issued a Transporter ID upon enrolling on the eWay bill portal, after which eWay bills can be generated.

Cases when eWay Bill is not required at all

eWay bill rules do not apply In the following cases:

  • Transportation is via a non-motor vehicle
  • When goods are being transported from a port or land customs station to either an ICD (Inland Container Depot) or a CFS (Container Freight Station) for customs clearance.
  • Transit cargo transported within Nepal and Bhutan
  • Transportation of goods under the Ministry of Defence as a consignor or consignee
  • Movement of empty cargo containers
  • The consignor transports goods to or from the source or place of business and a weighbridge for weighing at a distance of 20 km. A delivery challan is to be accompanied along with the goods.
  • When the consignor is the Central/State Government or a local authority and the goods are being transported by rail.
  • Goods specified as exempt from eWay bill requirements as mentioned in the respective State/Union territory GST Rules.
  • Goods transported are alcoholic liquor meant for human consumption and those products which the GST Council does not recommend. These include petroleum, crude oil, petrol, diesel, natural gas, and aviation turbine fuel.

Modes of generating eWay bill

There are two options available for those wanting to create eWay bills. They can do it either through the GST portal dedicated to eWay bill generation or through SMS. Those who do not have access to the website can do it through their mobile phones via SMS. Apart from eWay bill creation, updates and modifications can be easily done through the SMS facility.

Documents or Details required for eWay bill Generation

  • Invoice/ Bill of Supply/ Challan related to the consignment of goods
  • If transport is by road, then Transporter ID or Vehicle number
  • If transport is by rail, air, or ship, then Transporter ID, Transport document number, and date on the document

Validity of eWay Bill

The validity of an eWay bill is listed below. It is usually calculated from the date and time of generation.

Cancellation of eWay bill

Cancellation of an eWay bill can happen in two scenarios. If the goods are not transported at all or if the details mentioned in the bill do not match. It can be cancelled online directly via the common portal or through a facilitation center designated by the commissioner. Remember that the cancellation must occur within 24 hours of the eWay bill's generation. However, if the eWay bill has already been verified in transit by the authorities, it cannot be cancelled.

Conclusion:

The eWay bill has helped considerably in the smooth movement of goods. Let there be no doubt about eWay bill meaning or its working. All said and done, it has efficiently replaced the complex and time-consuming waybill system of the past. Now, there’s no delay at checkpoints, tax compliance is strictly maintained, and a uniform and transparent business environment is nurtured. In essence, it is a clear step forward for India’s logistics sector.

Sapna aapka. Business Loan Humara.

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eWay Bill: Definition, Rules, & Process | IIFL Finance (2024)

FAQs

What is the meaning and definition of e way bill? ›

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 as mandated by the Government in terms of Section 68 of the Goods and Services Tax Act read with Rule 138 of the rules framed thereunder.

What are the characteristics of e way bill? ›

An e-way bill is a permit needed for inter-state and intra-state transportation of goods worth more than Rs. 50,000. It contains details of the goods, the consignor, the recipient and the transporter. It can be electronically generated through the GSTN.

What is EWAY bill format? ›

e-Way Bill Format

The e way bill format is split into two parts, Part A and Part B. Part A of the eway bill: Part A includes the GSTIN of the supplier and recipient, date and place of supply, the value of the goods, document details, and reason for supply.

What is the transaction type of e way bill? ›

The transaction type of the e-way bill is based on the address type of your organisation (bill from and dispatch from addresses) and your customer (bill to and shipto addresses). In the e-Way Bills module, you can choose the transaction type of an e-way bill from the Transaction Type field.

What is waybill and its purpose? ›

What is a waybill in shipping? A waybill in shipping is a document that provides specific information about a freight shipment, such as origin, destination, transportation route, and contact information for the shipper and receiver. Waybills can be used in shipping freight cargo by truck, train, plane, or boat.

What is the difference between e-way bill and Invoice? ›

From day-one, E-Invoice is seamlessly integrated with e-Way bill system and accordingly e-Way bills are generated along with e-Invoice. That is, during e-Invoice generation, if the transportation details are sent, the e-Waybill is automatically generated.

How does a waybill work? ›

Tracking numbers – also known as waybills – are a must-have in tracking systems worldwide. They are unique codes containing both letters and numbers, assigned to individual parcels, acting like a digital passport that allows for the monitoring of the parcel's journey from dispatch to delivery.

What is the difference between a bill and a waybill? ›

Unlike the Bill of Lading, the Sea Waybill (or Express B/L) is not a document of title representing the goods. The Sea Waybill, which is always named and never to the order, is issued without original copies: only non-negotiable copies exist.

What is the structure of e-way bill? ›

E-way Bill Format

Place of Delivery field must be filled with the PIN Code of place of delivery. Invoice or Challan Number: Mention the Invoice or Challan number against which the goods are supplied. Value of Goods: Mention the consignment value of goods. HSN Code:Enter the HSN code of goods which are transported.

What is an eWay? ›

Eway, E-Way, or any other variant, may refer to: eWay, global electronic payment system. eway, an electronic street map application for Australia by Ausway. E-way, abbreviation of expressway. e-way, electronic toll-type toll road.

What is an eWay transaction? ›

Through eWay businesses can accept card payments online from local and overseas customers. eWay acts as both a payment processor and a payment gateway for online transactions.

How can we generate the eWay bill? ›

Here is a step by step Guide to Generate EWay Bill (EWB-01) online:
  1. Step 1: Login to the eway bill system.
  2. SStep 2: Click on 'Generate new' under 'E-waybill' option appearing on the left-hand side of the dashboard.
  3. Step 3: Enter the following fields on the screen that appears:
Jun 7, 2024

What is the E-way bill rules? ›

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 as mandated by the Government in terms of section 68 of the Goods and Services Tax Act read with rule 138 of the rules framed thereunder.

What is the other meaning of e-way bill? ›

Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.

What is the distance limit for e-way bill? ›

What is the e-way bill kilometre limit? The minimum distance necessary for an e-way bill is 50 km, while the maximum e-way distance limit is 4,000 km.

What is an eway? ›

Eway, E-Way, or any other variant, may refer to: eWay, global electronic payment system. eway, an electronic street map application for Australia by Ausway. E-way, abbreviation of expressway. e-way, electronic toll-type toll road.

How to create an Eway bill? ›

Here is a step by step Guide to Generate EWay Bill (EWB-01) online: Step 1: Login to the eway bill system. Enter the Username, password and Captcha code, Click on 'Login'. SStep 2: Click on 'Generate new' under 'E-waybill' option appearing on the left-hand side of the dashboard.

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