Understanding E-way Bill: Rules, Format, System & Generation Process

• What Is an E-way Bill
• E-way Bill Rules
• E-way Bill Format
• E-way Bill System
• E-way Bill Generation
• Validity and Cancellation of E-way Bills
• Penalty for Non-compliance
• FAQs on E-way Bill

E-way bill was rolled out nationwide on 1st April 2018. This was implemented to help quick and easy movement of goods in the country. E-way bill is one of the key aspects for GST compliance as a business enterprise moving large batches of goods. E-way bill system helps the government track the movement of goods across the country and prevent tax evasion.

What Is an E-way Bill?

An e-way bill or electronic-way bill is a document introduced under the GST regime that needs to be generated before transporting or shipping goods worth more than ₹50,000 within a state (intrastate) or between two states (interstate).

The physical copy of e-way bill must be present with the transporter or the person in charge of the conveyance and should include information such as goods, recipient, consignor and transporter.

E-way Bill Rules

Here are some of the e-way bill rules that businesses must be aware of:

• The person who generates e-way bill should be a registered person on GST portal
• The person must also register on the e-way bill portal
• If the transporter is not registered person under GST, it is mandatory for him to get enrolled on e-waybill portal (https://ewaybillgst.gov.in) before generation of the e-way bill
• E-way bill must be generated for: supply of goods, inward supply from an unregistered person and reasons other than a supply (for example, return of goods)
• Every company responsible for the movement of goods of consignment value more than ₹50000 is required to fill Part A of FORM GST EWB-01.

The limit of consignment value changes with each state. Before you print an e-way bill make sure you know the limit of consignment value that is mandated by your state for which e-way bill has to be generated.

E-way Bill Format

Form GST EWB-01 is the document that must be generated on the e-way bill portal and carried by the transporter of the goods. The form has Part A and Part B. This is what the FORM GST EWB-01:

Let us understand the fields in detail:

• GSTIN of Recipient: Mention the GSTIN number of the recipient.
• 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. If your turnover is up to ₹5 crores, you need to mention the first 2 digits of HSN code. If it is more than ₹5 crores, 4 digits of HSN code are required.
• Transport Document number should indicate Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number.
• Reason for Transportation shall be chosen from one of the following:
• Supply
• Export or Import
• Job Work
• SKD or CKD
• Recipient not known
• Line Sales
• Sales Return
• Exhibition or fairs
• For own use
• Others

E-way Bill System

e-Way bill system refers to the e-Way bill portal, an Information and Communication Technology based solution developed by National Informatics Centre.  This portal allows businesses to generate e-Way bill for the movement of goods.

Based on the e-Way Bills generated, the e-way bill system pulls GSTR-1 related information and automatically feeds it to a business’s GSTR-1 returns. This helps businesses avoid spending time on filling GSTR 1.

Other benefits of using the e-way bill system includes:

• This system supports different modes of e-Way Bill generation. Businesses can register any mode of e-Way Bill generation and use them for e-Way Bill generation.
• Businesses can create their own masters like customers, suppliers, products and transporters to make e-Way Bill generation smoother.
• The system allows businesses to prepare the consolidated e-Way Bill instead of giving the multiple e-Way Bills for movement of multiple consignments in one vehicle.
• The system notifies businesses through the web and SMS about the various activities like rejected EWB, verified EWB, etc.
• Businesses can create, modify and freeze ‘sub-users’ for generation of the e-Way Bill and assign them to employees or branches as per need. Businesses can also authorise sub-users to execute only certain activities on the system.

E-way Bill Generation

To generate e-way bill, a business must create an account on the e-way bill portal using their GSTIN and obtain login credentials to access the portal. The login credentials can be created by every registered business as well as unregistered transporter. The first step for generating an e-way bill is to log in to the e-way bill portal using the Username and Password. You can also generate e-Way bills in bulk using the ‘Generate e-Way bills in bulk’ option.

Validity and Cancellation of E-way Bills

Validity of the e-way bill depends upon the distance the goods are transported. In case of a regular vehicle, for every 100 KM or part of its movement, one day validity is provided. In the case of Over Dimensional Cargo vehicles, for every 20 KM or part of its movement, one day validity is provided. This validity expires on the midnight of last day.

For example, suppose an e-way bill is generated at 00:04 hours (12:04 am) on 14th March. Then first day would end on 00:00 hrs (12 am) midnight of 15 -16 March. Second day will end on 12:00 am midnight of 16 -17 March and so on.

If you have made a mistake on your e-Way bill you can cancel it. An e-way bill is usually cancelled if you make a mistake while entering data or if the goods didn’t get transported on the scheduled date. The time limit to cancel the bill is within 24 hours of its generation.

One can easily carry out e-way bill cancellation, by visiting the homepage and following these steps:

1. Under the "E-way Bill", tab, click the sub-option "Cancel"
2. Choose an e-way bill from the list that appears
3. Enter the 12 digit e-way bill no., for the e-way bill which needs to be cancelled
4. Select "Go"
5. Fill in a suitable reason for the cancellation

Once this is done, the e-way bill will be cancelled, and you will not be able to use it further.  

Penalty for Non-compliance

Moving goods without an e-way bill is an offence and attracts a penalty of ₹10000 or the tax that was intended to be evaded, whichever is greater. The vehicle found moving goods without an e-way bill can be seized by transport authorities. It will be released only on payment of specified tax and penalty.

E-way Bill FAQs

What is GST e-way bill?

E-way bill stands for Electronic Way Bill. It is a document prescribed by the government of India to keep a track on the movement of goods in the country. Every goods shipment with a consignment value of ₹50000 and above should have an e-Way bill as per GST rules.

When is the e-way bill applicable?

Typically, it is applicable for any consignment value exceeding ₹50000. But this value is not the same for all states. Even in case of inward supply of goods from unregistered person, e-way bill is applicable.

When should the e-way bill be generated?

The e-way bill needs to be generated before the commencement of movement of goods.

What is the validity of E-Way Bill?

• Less than 200 KM: 1 day
• Every  additional 200 Km or part thereof thereafter – 1 additional day

The validity period will be counted from the time of generation of the e-way bill. The validity period of the e-way bill may be extended by the commissioner for certain categories of goods, as specified in the notification issued in this regard.

Who should generate the E-Way Bill?

• When goods are transported by a registered person, either acting as a consignee or consignor in his own vehicle, hired vehicle, railways, by air or by vessel, the supplier or recipient of the goods should generate the e-way bill.
• When the goods are handed over to a transporter, the e-way bill should be generated by the transporter. In this case, the registered person should declare the details of the goods in a common portal.
• In case of inward supplies from an unregistered person, either the recipient of supply or the transporter should generate the e-way bill.

How to generate the e-way bill?

Form GST EWB-01 is an e-way bill form. It contains Part A, where the details of the goods are furnished, and Part B contains vehicle number.

Can e-way bill be generated for consignments of value less than ₹50000?

Yes, either a registered person or a transporter can generate an e-way bill although it may not be mandatory.

What happens if multiple consignments are transported in one vehicle?

The transporter should generate a consolidated e-way bill in the Form GST EWB 02 and separately indicate the serial number of e-way bill for each of the consignment.

On generation of e-way bill, will there be any reference number generated?

Upon generation of the e-way bill, on the common portal, a unique e-way bill number called ‘EBN’ will be made available to the supplier, the recipient and the transporter.

What happens if goods are transferred from one vehicle to another vehicle during transit?

Before transferring the goods to another vehicle and making any further movement of such goods, the transporter needs to update the details of conveyance in the e-way bill on the common portal in Form GST EWB 01.

If goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, updating the details of conveyance in the e-way bill is not mandatory.

What happens if the consignor does not generate the e-way bill even though the value of consignment is more than ₹50000?

The transporter must generate an e-way bill in Form GST EWB 01 on the basis of the invoice, bill of supply or the delivery challan.

What happens if e-way bill is generated but goods are not transported?

The e-way bill can be cancelled electronically on the common portal within 24 hours of its generation. The e-way bill cannot be cancelled if it has been verified by an officer during transit.

Will the e-way bill be made available for acceptance to the recipient of goods?

Yes, the details of the e-way bill will be made available for the recipient of goods only if he is registered. The recipient of goods should communicate acceptance or rejection of the consignment covered by the e-way bill within 72 hours of the details being made available.

What happens if recipient of goods does not communicate the acceptance of rejection within 72 hours?

If the recipient of goods doesn’t communicate acceptance or rejection within 72 hours, it will be deemed as accepted by the recipient.

Is there a facility to generate or cancel the e-way bill through SMS?

The facility of generation and cancellation of e-way bill will be made available through SMS.

What happens if there is a mistake or wrong entry in the e-way bill?

If there is any incorrect information or a mistake in the e-way bill, then it cannot be corrected or edited. In case of any errors in the e-way bill, the only option is to cancel the e-way bill and generate a new e-way bill with correct details.

What must be done if the validity of the e-way bill expires due to vehicle breakdown or other circumstances?

The validity of the e-way bill can be extended under circumstance of exceptional nature, law and order issue, trans-shipment delay, accident of conveyance etc by updating the reason for extension and the details in Part B of Form GST EWB-01.

• E-Way Bill Registration
• E-Way Bill Generation
• Bulk E-Way Bill Generation
• E-Way Bill FAQs
• Consolidated E-way Bills
• E-Way Bill Verification

What is the process for verification of e-way bill?

The transporter or the person in charge of a conveyance should carry the following documents:

• The invoice or bill of supply or delivery challan, and
• A physical copy of the e-way bill or the e-way bill number.

At the place of verification, the officer may intercept any vehicle to verify the e-way bill or the e-way bill number in physical form for all interstate and intrastate movement of goods. On the ground of suspicion of tax evasion, a physical verification of the vehicle can be carried out by an officer after obtaining necessary approval from the commissioner or an officer authorized on his behalf. If the physical verification of vehicle is done at one place –within the state or in any other state, no further physical verification will be carried out again during the transit, unless specific information of tax evasion is made available subsequently.

After every inspection, the officer needs to record the details of the inspection of goods in Part A of Form GST EWB 03 within 24 hrs of inspection and the final report must be recorded in Part B of Form GST EWB 03 within 3 days of inspection. If the vehicle is detained for more than 30 minutes, the transporter has an option to complain by uploading the details in Form GST EWB 04.

What are the changes introduced in the e-way bills after e-invoicing?

There will be no change in the process of generating e-way bills.

How to generate e-way bill from e invoice under the new system?

A user can use the following steps:

• Upload the invoice to the portal.
• After the GSTN has verified the mandatory information, the IRP will issue a unique invoice reference number and a QR code for the invoice.
• Section 12 of the e-invoice schema—e-way bill details—is where these data will be reported on the e-way bill portal. E-way bills are generated using the APIs from IRN.
• Post that, a user should sign in to the e-way bill portal and enter the invoice's IRN to create an e-way bill.
• If the necessary information is updated in the e-invoice, Parts A and B will automatically be filled out.
• Select "Submit." The e-way bill will be generated if there are no errors, and it can be downloaded as a JSON or PDF file.

What is new update in e-way bill?

Businesses with cumulative annual turnover of Rs 10 crore and above need to generate e-invoicing for B2B transactions.

Do we need to generate e-way bill after e-invoice?

e-Way bill needs to be generated if the consignment value is above the e-way bill threshold. If your business is under the purview of e-invoicing, both need to be generated. The interesting part is that when invoice details are shared for generating e-invoices , the e-invoice portal automatically shares the details with the e-way bill portal as well. This ensures e-way bill is auto-generated. If you are using a connected solution, you can generate both together without the need to do it manually.

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