Understanding E-Way Bill

E-way bill is an abbreviated form of Electronic Way Bill. Now in case you are unaware of it, E-Way Bill is a unique document/bill which is generated electronically for movement of good from one place to another (either inter-state or intra-state). It has become compulsory for any inter-state or intra-state transportation of goods in India where the consignment of goods exceeds Rs. 50,000.

E-way Bill can also be generated or cancelled through services like SMS and Android App. A Unique Bill Number (EBN) is generated and is available to the supplier, the recipient and the transporter.

Let us now understand some more details regarding the E-Way Bill Payment to have a better understanding of the same.

Who has to generate the E-way Bill

  1. Registered Person- Whenever there is a transport of goods of more than Rs. 50000 from a registered person or to a registered person, an E-Way Bill must be generated.
  2. Unregistered Person- Just like registered ones, Unregistered Persons are also required to generate E-way Bills in case of transport of goods of more than Rs. 50000.
  3. Transporter- In case the supplier has failed to generate an E-way Bill, the transport carrying the goods through medium of rail, road or air, must generate an E-way Bill if the goods being transported by him are of more than Rs. 50000.

When should the E-way Bill be generated

An E-Way Bill must be generated when-

  1. The transportation of goods (value of more than Rs. 50000) is in relation to a supply, a return or an inward supply. The supply may be made for a consideration which may or may not be in the normal course of a business.
  2. The transportation of goods is in relation to a Sale (sale of goods in return for a consideration), Transfer (transfer of goods from one branch office to another, Barter (where goods are transported as a form of consideration).

An E-Way Bill must be generated compulsorily even if the value of the Goods being less than Rs. 50000, when-

  1. The transportation of goods is by the Principal to the Job worker by Principal/ Registered Job Worker.
  2. The transportation of Handicraft goods by a dealer who is exempted from GST registration.

When should the E-Way bill not be generated

An E-Way Bill is not required when-

  1. The transportation of goods is under Custom’s supervision
  2. The transportation of goods is through a non-motor vehicle.
  3. The transportation of transit Cargo is under process to or from Bhutan and Nepal.
  4. The transportation of empty Cargo Containers is being made.
  5. The transportation of such goods which are specifically exempted from E-Way Bill requirements in the respective State GST rules.

Documents required to generate E-way Bill

Following are the documents that are necessarily required in order to generate an E-Way Bill-

  1. Invoice or Bill of Supply related to the consignment of goods.
  2. In case of:
  3. Road Transport- Vehicle No. or Transporter ID
  4. Rail/ Air/ Ship Transport- Transporter ID, Transport Document No. and the Date on the Document.

We sincerely hope that the insights on the E-Way Bill Generation given in this article would certainly help you in your business. Leave your Comments in the Comment section below to share your opinions on the Implementation of E-Way Bill Generation System.

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