An electronic way bill (E-way bill) is a document which lists the goods in transit. Traders cannot ‘move’ goods worth more than Rs. 50,000 without this docuument. A registered person or transporter may choose to generate an e-way bill even if the value of goods is less than Rs. 50,000.

Basics

Who should generate an e-way bill?

  • Every registered person who is a consignor, consignee, or transporter.
  • An unregistered person who is supplying to a registered recipient. Here, the recipient has to follow the compliances since the supplier is not registered.

When is an e-way bill generated?

Traders have to generate a way bill when there is movement of goods:

  • Supply of goods (made with/without consideration)
  • Non-supply transactions (Examples: Return of goods)
  • Purchases from an unregistered person (Reverse charge mechanism will be applicable).

On generating an e-way bill, the supplier, recipient and transporter will get a unique e-way bill number (EBN).

E-Way Bill Registration, E-Way Bill

E-Way Bill Process

Exemptions:

It is not required for transporting goods via non-motorized conveyances. Transporters and traders don’t have to include value of exempted goods to calculate consignment value. For example, goods transported from international ports for clearance by customs. Exempt goods include:

  • cooking gas (LPG),
  • kerosene for sale under a Public Distribution System (PDS),
  • municipal waste, live bovine animal
  • items of mass consumption such as vegetables, fruits, food grains, meat, bread, curd, books, newspapers, khadi, raw silk, earthen pots, cheque, puja samagri, hearing aids, honey, flour, fresh milk, betel leaves, clay lamps, seeds,
  • currency, judicial and non-judicial stamp paper, Indian flag,
  • Items of personal use such as kajal, contraceptives, frozen semen, human hair and jewelry.

Key Points to Remember

26th GST Council Meeting Update, E-Way Bill

  • As per 26th Council Meeting updates, one has to generate only Part A of EWB in cases distance the place of consignor and the place of transporter is not more than 50 km.
  • The recipient will get the details only on registration.
  • A recipient can cancel the bill electronically if he does not receives the goods. He can cancel it on the GSTN within 24 hours of its registration. But, no one can cancel it if an officer has verified it during transit.
  • Suppliers, buyers and transporters can generate or cancel an e-way bill through SMS.
  • Traders and transporters can use the information in Part A of the Form GST EWB-01 to prepare GSTR-1.

 

Learn how to generate E-way Bills on your own and get IT support here.

E-Way Bill Services