E-way bill system in GST is more flexible for a limited period, but it’s important to resume regular compliance practices to avoid disruptions in moving goods from one place to another.
From May 1, 2021, to August 18, 2021, the E-way bill system in GST underwent a temporary change. During this period, businesses won’t encounter E-way bill blockages for not filing GSTR-1 or GSTR-3B (for two months or more in the case of monthly filers, and one quarter or more for QRMP taxpayers) for March 2021 to May 2021.
However, starting from August 15, 2021, the blocking of E-way bills due to non-filing of GSTR-3B resumes. It’s crucial for businesses to stay informed and compliant with these updates.
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What is E-Way Bill System in GST
The E-way Bill system in GST streamlines the movement of goods, requiring a digital waybill from the E-way Bill Portal. For any GST registered individual transporting goods valued over Rs. 50,000 (per invoice or delivery challan), an E-way bill is a must, generated on E-way bill Website.
You have options! The E-way bill can be created or canceled through SMS, Android App, or site-to-site integration using APIs. Just make sure to enter the correct GSTIN of the involved parties and validate it with the handy GST search tool.
Once the E-way bill is generated, it’s assigned a unique Eway Bill Number (EBN). This number is accessible to the supplier, recipient, and the transporter, ensuring a smooth and compliant journey for your goods.
1. Who need to Generate E Way Bill?
For registered individuals, an E-way bill is a must for goods valued over Rs 50,000. But, whether it is more or less, both the registered person and the transporter can choose to generate one.
Unregistered individuals, you also need an e-Way Bill. If you are selling to a registered person, they handle the compliance as if they were the supplier.
Transporters, you are in too! If the supplier has not created an E-Way Bill, you are responsible for generating one when transporting goods by road, air, rail, or any other means.
E way Bill Rules for Transporter in GST
Great news for transporters in the E-way bill system in GST. No need to generate E-way bills (Form EWB-01 or EWB-02) if each consignment is individually less than or equal to Rs 50,000. But, here’s the catch: when you add up all the documents (Tax Invoice, Delivery Challan, Bill of Supply), and the total exceeds Rs 50,000, it’s time to create that E-way bill.
For unregistered transporters, getting on board is easy. Just enroll on the e-way bill portal, snag your Transporter ID, and start generating E-way bills hassle-free.
2. When E Way Bill is Required to be Generated
E-Way bills are a must for moving goods in a vehicle valued over Rs. 50,000, be it for a sale, return, or an inward supply from an unregistered person.
A ‘supply’ encompasses transactions for payment in the course of business, non-business payment transactions, or even supplies without any payment. It covers sales, transfers, and exchanges.
Even if the consignment value is under Rs. 50,000, E-way bills are compulsory for specific goods. This includes interstate movements from a Principal to a Job-worker and the interstate transport of exempted handicraft goods by a dealer not registered under GST.
Hence, E-way bill system in GST is essential for various goods movements, and it is a breeze to generate them on the common portal.
Who | When | What to Fill | Form |
Every business registered under GST | Before moving goods | Complete Part A | Form GST EWB-01 |
Business (sender or receiver) or the recipient of goods | Before moving goods | Complete Part B | Form GST EWB-01 |
Business (sender or receiver) handing goods to a transporter | Before moving goods | Complete Part B | The person should provide transporter details in Part B of FORM GST EWB-01 |
Transporter of goods | Before moving goods | Not Applicable | Generate e-way bill based on info from Part A of FORM GST EWB-01 |
Unregistered person under GST with a registered recipient | Recipient acts as the supplier | Not Applicable | 1. If the goods travel within the same state for 50 km or less, from the sender’s place to the transporter’s place for further transport, Part B details may be skipped. 2. For air, ship, or railways transport, the consignor or recipient should complete Part A of FORM GST EWB-01 |
Transporters handling multiple shipments in one go can simplify the process using form GST EWB-02. By listing the e-way bill numbers of each consignment, they can create a consolidated e-way bill effortlessly.
If both the sender and receiver haven’t made an e-way bill, the transporter can step in. Just fill out PART A of FORM GST EWB-01 using the provided invoice, bill of supply, or delivery challan, and get those goods on the move without a hitch.
Read also: Compulsory Registration Under GST – 12 Number of Cases
3. Validity of eWay Bill in GST
Understanding the E-way bill system in GST is key, especially when it comes to how long your e-way bill stays valid. The clock starts ticking from the moment you generate the e-way bill, you can extend the validity if needed. Whether it is eight hours before it expires or within eight hours after, the one who generated the E-way bill has the power to give it a little more time. And here is the breakdown based on the distance your goods travel.
Mode of Transport | Distance (in Kilometers) | E-Way Bill Validity (in Days) |
Regular Cargo | Up to 200 | 1 |
Regular Cargo | Additional 200 or part thereof | Additional 1 Day |
Over Dimensional Cargo (ODC) | Up to 20 | 1 |
Over Dimensional Cargo (ODC) | Additional 20 or part thereof | Additional 1 Day |
Cases When E Way Bill is not Required in India
Documents Required to Generate E way Bill
Creating an E-way bill in the GST system is a breeze, but here’s the lowdown on what you need before you hit that generate button:
- Portal Registration: First things first, make sure you are registered on the E-way bill portal.
- Documentary Proof: Have the invoice, bill, or challan for the goods ready – An important step.
- Road Transport: If you are hitting the road, ensure you have either the Transporter ID or the Vehicle number handy.
- Other Modes: For rail, air, or ship transport, gather the Transporter ID, Transport document number, and the date on the document.
It is that simple – get these basics in place, and you are all set to generate your E-way bill!
Ways of Generating E way Bill
In the vast landscape of the E-way bill system in GST, there are cases where generating an E-way bill is not necessary if:
- Your goods are moving in a non-motor vehicle.
- You’re transporting goods from customs points to Inland Container Depots (ICD) or Container Freight Stations (CFS) for customs clearance.
- Goods are under customs supervision, customs seal, or customs bond movement.
- Transit cargo is heading to or from Nepal or Bhutan.
- The Ministry of Defence is moving the goods.
- Empty cargo containers are on the move.
- You’re transporting goods within 20 kms for weighment with a delivery challan.
- Rail transport is handled by the Central Government, State Governments, or local authorities.
- Your goods fall under exempt categories specified in State/Union Territory GST Rules.
- Special goods specified in various categories, including exempt supplies, Schedule III no-supply items, and those listed in Central Tax Rate notifications.
Remember, if the distance between the consigner, consignee, and transporter is less than 50 kms within the same state, you’re off the hook for filling Part B of the E-way bill.
- On portal
- through SMS
A) E way bill generation on portal
When it comes to the E-way bill system in GST, the EWB portal is your one-stop solution. This user-friendly portal offers a smooth experience for a variety of tasks:
- Generate E-Way Bills: Easily create both single and consolidated E-way bills hassle-free.
- Vehicle Number: In case of need to change the vehicle number on a bill you have already generated. You can change the same.
- Cancel with Ease: In case of a mistake made or plans changed, you can cancel your generated E-way bills effortlessly.
B) E way bill generation through SMS
In the world of the E-way bill system in GST, there is flexibility for everyone:
- Web-Based: If you are handling multiple E-way bills, the web-based facility is your best friend. It is convenient and perfect for larger tasks.
- SMS: For those looking to generate a single E-way bill or who cannot access the website, the SMS facility is the go-to option. It is a handy solution, especially during emergencies or urgent situations for big businesses.
With these user-friendly options, the E-way bill system in GST has got you covered for all your billing needs.
State-Wise E-way Bill Limit in GST
Since the E-way bill system in GST rolled out on April 1, 2018, there has been a surge in its use for inter-state goods movement. The good news is that every State and Union Territory is on board, making it a seamless process within their boundaries.
However, there’s some relief for folks in specific states. Take Tamil Nadu, for example, where if the value of goods is less than Rs. One Lakh, people are exempt from generating an E-way bill. Curious about other such exemptions? Head to our page on state-wise E-way bill rules and threshold limits or check out the respective commercial tax websites for each state or UT.
Conclusion
The E-way bill system in GST is essential for smooth goods movement. Whether through the easy EWB portal or convenient SMS, businesses find efficient solutions. It ensures compliance, promotes transparency, and remains vital for navigating GST logistics.
Frequently Asked Questions (FAQ)
Your E-way bill is like a journey, it is complete only when you have filled in Part-B. Without it, your EWB printout will not be valid for moving goods. Remember, it is a must for any journey, except for when you are moving within the same state from the consignor’s place to the transporter’s place, and the distance is less than 50 km.
The e-way bill is necessary to carry all items unless exempted by announcements or laws. Even if the value of the consignment is less than fifty thousand rupees, the movement of handicraft goods or goods for job-work purposes under defined conditions requires an e-way bill.
Unless otherwise specified in announcements or laws, all things must be transported using an e-way bill. Even if the value of the consignment is less than fifty thousand rupees, movement of handicraft goods or goods for job-work purposes under specified conditions necessitates the use of an e-way bill.
Under GST, transporters must carry an e-way bill when conveying products from one location to another, whether by way of supply or otherwise, if the value exceeds the limit stipulated by the CGST Rules. According to the CGST laws, the limit is Rs.50,000, which mostly relates to interstate transportation.