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Eway Bill

Eway Bill

What is Eway Bill

Under GST, transporters should carry an eWay Bill when moving goods from one place to another when certain conditions are satisfied. In this article, we cover the following topics-

What is an eWay Bill?

EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.

Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of the GST search tool before using it. When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

eWay Bill be issued

Under GST, transporters should carry an eWay Bill when moving goods from one place to another when certain conditions are satisfied. In this article, we cover the following topics-

Recent updates on e-way bill

Updated as on 29th August 2021

From 1st May 2021 to 18th August 2021, the taxpayers will not face blocking of e-way bills for non-filing of GSTR-1 or GSTR-3B (two months or more for monthly filer and one quarter or more for QRMP taxpayers) for March 2021 to May 2021.

Update as on 4th August 2021

Blocking of e-way bills due to non-filing of GSTR-3B resumes from 15th August 2021.

What is an eWay Bill?

EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.

Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of the GST search tool before using it. When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

When Should eWay Bill be issued?

eWay bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000 (either each Invoice or in aggregate of all invoices in a vehicle/conveyance) –

  • In relation to a ‘supply’
  • For reasons other than a ‘supply’ ( say a return)
  • Due to inward ‘supply’ from an unregistered person
For this purpose, a supply may be either of the following:
  • A supply made for a consideration (payment) in the course of business
  • A supply made for a consideration (payment) which may not be in the course of business
  • A supply without consideration (without payment)In simpler terms, the term ‘supply’ usually means a:
  • Sale – sale of goods and payment made
  • Transfer – branch transfers for instance
  • Barter/Exchange – where the payment is by goods instead of in money

Therefore, eWay Bills must be generated on the common portal for all these types of movements. For certain specified Goods, the eway bill needs to be generated mandatorily even if the value of the consignment of Goods is less than Rs. 50,000:

  • Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker
  • Inter-State Transport of Handicraft goods by a dealer exempted from GST registration
Type of Conveyance Distance E-way bill
Other than Over dimensional cargo Less than 100 km 1 day
For every additional 100 km and thereof Additional 1 day
For Over dimensional cargo Up to 20 km 1 day
For every additional 20 km and thereof Additional 1 day
Generate an eWay Bill
  • Registered Person – Eway bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.
  • Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
  • Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way 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 Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated.

Who When Part Form
Every Registered person under GST Before movement of goods Fill Part A Form GST EWB-01
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods Before movement of goods Fill Part B Form GST EWB-01
Registered person is consignor or consignee and goods are handed over to transporter of goods Before movement of goods Fill Part B The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods Before movement of goods Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered Compliance to be done by Recipient as if he is the Supplier. 1. If the goods are transported for a distance of fifty kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. 2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient
Cases when eWay bill is Not Required

In the following cases it is not necessary to generate e-Way Bil:

  • The mode of transport is non-motor vehicle
  • Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
  • Goods transported under Customs supervision or under customs seal
  • Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
  • Transit cargo transported to or from Nepal or Bhutan
  • Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
  • Empty Cargo containers are being transported
  • Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery challan.
  • Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
  • Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
  • Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications. (PDF of List of Goods).
State-wise e-Way Bill Rules and Limits

Inter-State movement of goods has seen rise in numbers of generation of eway bills ever since its implementation began from 1st April 2018. State-wise implementation of e-way bill system has seen a good response with all the States and Union Territories joining the league in the generation of eway bills for movement of goods within the State/UT.

However, reliefs have been provided to people of few States by way of exempting them from eway bill generation in case of monetary limits falling below threshold amount or certain specified items. For Instance, Tamil Nadu has exempted people of its State from the generation of eway bill if the monetary limit of the items falls below Rs. One Lakh. To know more of such reliefs for other States/UTs, visit our page on state-wise e-way bill rules and threshold limits or alternatively check the respective commercial tax websites for each of such States/UTs.

Validity of eWay Bill

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Type of conveyance Distance Validity of EWB
Other than Over dimensional cargo Less Than 200 Kms 1 Day
For every additional 200 Kms or part thereof additional 1 Day
For Over dimensional cargo Less Than 20 Kms 1 Day
For every additional 20 Kms or part thereof additional 1 Day
Documents or Details required to generate eWay Bill
  • Invoice/ Bill of Supply/ Challan related to the consignment of goods
  • Transport by road – Transporter ID or Vehicle number
  • Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document
Cases When E-Way Bill is Exempted or Not Required

When the below-mentioned goods are being transported E-way bill is not required :

  • Liquefied petroleum gas for supply to household and non-domestic exempted category (NDEC) customers;
  • Kerosene oil sold under PDS;
  • Postal baggage transported by Department of Posts;
  • Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71);
  • Jewelry, goldsmiths and silversmiths wares and other articles (Chapter 71);
  • Currency;
  • Used personal and household effects;
  • Coral, unworked (0508) and worked coral (9601)

In case of Transport of goods from customs port, airport, air cargo complex, and land customs station to an inland container depot or a container freight station for clearance by Customs, E-way bill is not required.

When a non-motorized conveyance is transporting goods, E-way bill generation is not required.

When following goods are being transported, the e-way bill is not required to be generated;

  • Alcoholic liquor for human consumption
  • Petroleum crude
  • High-speed diesel
  • Motor spirit (commonly known as petrol)
  • Natural gas,
  • Aviation turbine fuel
  • When there is no supply as per provisions in Schedule III of the Act, an E-way bill is not required.
E-way bill is not required to be generated when the goods are being transported—
  • Under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex, and land customs station, or one customs station or customs port to another customs station or customs port, or
  • Under customs supervision or customs seal;
  • Where the goods being transported are transit cargo from or to Nepal or Bhutan;
  • Where the goods being transported are transit cargo from or to Nepal or Bhutan
  • Where the goods being transported are exempt from tax under various notifications;
  • When Central Government, State Government, or a local authority acting as a consignor undertakes the Transport of goods by rail, no E-way bill is required.
  • When goods movement has been caused by defense formation under the Ministry of defense as consignor or consignee, no E-way bill is required.
  • No E-way bill is required in case of Transport of empty cargo containers.
  • In case goods are being transported for weighing purposes and the distance is not more than 20 Kms from the place of the consignor's business to the weighbridge or vice versa, E-way bill generation is not required. However, the movement of goods must be accompanied by a delivery challan.
  • When goods specified in the schedule appended to notification no, 2/2017-Central Tax (Rate) dated 28.06.2017 is being transported, other than de-oiled cake, then in such case, e-way Bill is not required to be generated