An e-Invoice and an e-Way Bill are two separate GST compliance requirements. An e-Invoice, generated through the Invoice Registration Portal (IRP), authenticates B2B and export invoices by assigning a unique Invoice Reference Number (IRN). An e-Way Bill, generated on the e-Way Bill portal, is required when you transport goods worth more than ₹50,000. A B2B sale of goods that meets both conditions requires both documents.
What is e-Invoice under GST?
e-Invoicing is a system where B2B invoices are authenticated by the IRP before they are issued. When a supplier uploads an invoice to the IRP, it returns an IRN and a digitally signed QR code that must appear on the final invoice. As of August 2023, e-Invoicing applies to businesses with an Aggregate Annual Turnover (AATO) above ₹5 crore.
e-Invoicing applies to B2B supplies of goods and services, exports and supplies to SEZ units. It does not apply to B2C invoices, nil-rated or fully exempt supplies, or businesses in sectors such as banking, insurance and Non-Banking Financial Companies (NBFCs).
What is an e-Way Bill under GST?
An e-Way Bill is a document required for the movement of goods worth more than ₹50,000. It is generated on the e-Way Bill portal (ewaybillgst.gov.in) and must accompany the consignment. Part A covers supply details such as GSTIN, goods value, HSN code and consignee information. Part B covers transport details such as the vehicle number or transporter ID.
An e-Way Bill is not required for goods listed as exempt under Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, for transport by non-motorised vehicles or for movement within certain notified distances within a state.
What is the difference between an e-Invoice and an e-Way Bill?
The table below covers the main points of difference:
|
Point |
e-Invoice |
e-Way Bill |
|
Main purpose |
Invoice authentication |
Goods movement compliance |
|
Output |
IRN and signed QR code |
e-Way Bill number |
|
Portal |
IRP |
e-Way Bill portal |
|
Used for |
B2B and export invoice reporting |
Movement of goods |
|
Needed for services? |
Yes, if e-Invoice applies |
No, unless goods movement is involved |
|
Can be linked? |
Yes |
Yes, Part A can be filled from e-Invoice data |
An e-Invoice must be generated before the invoice is issued to the buyer. An e-Way Bill must be ready before the goods leave the supplier’s premises. Both can apply to the same transaction, and the IRP can pass e-Invoice data to the e-Way Bill portal to reduce duplicate entry.
When is only an e-Invoice needed?
A B2B service invoice issued by a business above the AATO threshold needs an e-Invoice. But because no goods move, no e-Way bill is required. A software firm billing a corporate client for a subscription service must generate an e-Invoice but does not need an e-Way Bill.
When is only an e-Way Bill needed?
A B2C sale of goods does not require an e-Invoice, but if the consignment value exceeds ₹50,000, an e-Way bill is required before dispatch. A business with an AATO up to ₹5 crore that transports goods above the value limit also needs only an e-Way Bill.
A stock transfer between two warehouses of the same business also falls here. There is no sale involved, so e-Invoicing does not apply, but if the goods value exceeds ₹50,000 and the movement goes beyond the intra-city exemption limit, an e-Way bill is needed.
When are both e-Invoice and e-Way Bill needed?
Both documents are needed when:
- The transaction is covered by e-Invoicing, and
- Goods are physically transported with a consignment value exceeding ₹50,000.
This applies in scenarios such as:
- B2B sale of goods: A supplier covered by the e-Invoice threshold selling to a registered buyer must generate an e-Invoice. If the goods are transported and the consignment value exceeds ₹50,000, an e-Way Bill is also required before movement begins.
- Export of goods: An exporter covered by the e-Invoice requirement must generate an e-Invoice. An e-Way Bill is also required for transporting the goods from the place of dispatch to the port or border.
- Supply to an SEZ unit or developer: The transaction may be covered by e-Invoicing requirements. If the goods are physically transported and the e-Way Bill provisions apply, an e-Way Bill is also required.
How does e-Invoice data help generate an e-Way Bill?
When an e-Invoice is generated through the IRP, the portal automatically passes the supply details (GSTIN, invoice number, goods value and HSN code) to the e-Way bill system. This pre-populates Part A of the e-Way Bill. The supplier or transporter then adds vehicle details in Part B to complete the process. This removes duplicate data entry and reduces the risk of mismatches between the invoice and the e-Way Bill, which can cause delays during transit checks.
What are the common examples?
Requirements differ based on the type of transaction and whether goods are transported.
B2B sale of goods
A manufacturer supplying goods to a dealer (both above the ₹5 crore AATO threshold) needs both an e-Invoice and an e-Way bill if the consignment value exceeds ₹50,000 and goods are transported.
B2B service invoice
A consultancy billing a registered business for advisory services needs only an e-Invoice. No goods move, so no e-Way Bill is needed.
Export of goods
An exporter sending goods abroad needs an e-Invoice (if above the threshold) and an e-Way Bill for the movement from the factory to the port.
Sales return
When a buyer returns goods via transport, an e-Way Bill is needed if the value exceeds ₹50,000. The seller issues a credit note, which also requires an IRN if e-Invoicing applies.
Conclusion
The deciding factors come down to two questions: does the transaction qualify for e-Invoicing, and does it involve the movement of goods worth more than ₹50,000? Service invoices almost always need only an e-Invoice. B2C goods sales generally need only an e-Way bill. B2B goods sales above both thresholds need both.
TallyPrime handles this within a single workflow, generating the e-Invoice and e-Way bill together so data entered for the invoice flows directly into the compliance document without re-entry.
