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).