The Indian economy thrives on the seamless movement of goods across states. To streamline this process and improve tax compliance, the Goods and Services Tax (GST) introduced the e-way bill system in 2018. This electronic document eliminates the need for physical permits, reduces transportation delays, and enhances transparency in the supply chain.
An E-way bill is an electronic document generated online that serves as a permit for transporting goods within India. It electronically captures details about the consignment, including:
1-Value of goods
2-Origin and destination of the shipment
3-GST Identification Numbers (GSTINs) of supplier and recipient
4-Transporter details (if applicable)
Example:
Imagine a garment manufacturer in Delhi (Supplier) needs to send a consignment of shirts worth Rs. 75,000 to a clothing store in Mumbai (Recipient). Before dispatching the goods, the supplier must generate an e-way bill on the e-way bill portal (http://ewaybillgst.gov.in/). This e-way bill acts as a virtual permit, allowing the shipment to move freely across state borders without any hassles.
The responsibility of generating an e-way bill falls on one of the following parties:
Registered Supplier: If the supplier is a registered GST taxpayer, they are primarily responsible for generating the e-way bill for any consignment exceeding Rs. 50,000.
Registered Recipient: The recipient can generate the e-way bill if the supplier is unregistered.
Transporter: In some cases, the transporter can also generate the e-way bill, but only with the supplier's consent.
An e-way bill is mandatory for the movement of goods exceeding Rs. 50,000 in value (as of April 2024). This applies to both inter-state (between states) and intra-state (within a state) movement of goods. However, some states may have lower threshold limits. It's advisable to check with the concerned authorities for specific state regulations.
Here's a breakdown of e-way bill applicability based on value
Inter-State Movement: Mandatory for all goods exceeding Rs. 50,000.
Intra-State Movement:
Most states: Mandatory for all goods exceeding Rs. 50,000.
A few states (like Delhi): May have a higher threshold (e.g., Rs. 1 lakh).
How to Generate an E-way Bill
The e-way bill system offers a user-friendly online portal (http://ewaybillgst.gov.in/) for generating e-way bills. Here's a simplified guide:
Register on the e-way Bill Portal: Businesses need to register on the portal using their GSTIN credentials.
Initiate e-way Bill Generation: Once logged in, select the "Generate e-way Bill" option.
Enter Shipment Details: Provide details like supplier and recipient GSTINs, product description, HSN code (harmonized system nomenclature for classifying goods), quantity, value, and origin and destination addresses.
Transporter Details (Optional): If using a transporter, enter their details.
Generate e-way Bill: Upon submitting the information, the system generates a unique e-way bill number (EBN). This number serves as the virtual permit for the consignment.
As of March 2023, over 6.5 billion e-way bills have been generated on the e-way bill portal, highlighting its widespread adoption by businesses.
Up to 100 kilometers (km): 1 Day
100 km to 500 km: 3 Days (This is a significant increase from the previous validity period of 1 day per 100 km, implemented in January 2021. This change aimed to reduce delays for mid-distance transportation)
500 km and above: 1 Day for every additional 500 km (or part thereof)
Threshold Limit: Generally, an e-way bill is not required for the movement of goods with a value less than Rs. 50,000. This applies to both inter-state and intra-state movements (in most states).
Exemptions by Goods Category:
Certain categories of goods are inherently exempt from the e-way bill requirement. These include:
Essential Items: Milk, curd, lassi, fresh milk, vegetables, fruits, unprocessed tea leaves, unroasted coffee beans (refer to the official notification for the complete list).
Livelihood Goods: Live animals, plants, and trees.
Educational Materials: Books, maps, and periodicals.
Salt
Unbranded Rice and Wheat Flour
From Customs Port/Station: Goods transported from a customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
Under Customs Supervision/Seal: Goods transported under customs supervision or under a customs seal.
Government Movement: Movement of goods by the Central Government, State Government, or a local authority, if transported by rail.
Non-Motorized Transport: Goods carried by non-motorized vehicles like bicycles, rickshaws, handcarts, or even by hand.
While generating the e-way bill online, you'll need the following information to hand:
GSTINs: The GST Identification Numbers of both the supplier (sender) and recipient.
Invoice/Bill Details: This includes the invoice or bill number, HSN code (harmonized system nomenclature for classifying goods), description of goods, and their value.
Transporter Details (Optional): If you're using a transporter to move the goods, you'll need their details as well.
Origin and Destination Addresses:Clearly specify the starting and ending points for the goods' journey.
A staggering statistic highlights the importance of accurate information: As of December 2023, over 12 million e-way bills were rejected due to discrepancies or missing information. This emphasizes the need for careful data entry to avoid delays during transportation.
Can I generate an e-way bill offline?
No, currently, the e-way bill system requires online generation through the official portal.
What happens if I am caught transporting goods without a valid e-way bill?
Penalties for non-compliance with the e-way bill system can include detention of goods, seizure of vehicles, and monetary fines.
Can I extend the validity of an e-way bill?
Yes, the e-way bill system allows for online extension of validity under specific circumstances (subject to approval).
How can I check the status of an e-way bill?
The e-way bill portal allows registered users to track the status of their e-way bills using the EBN number.