Managing the seamless movement of goods while ensuring compliance with GST regulations can be challenging for enterprises. The E-Way Bill system plays a crucial role in streamlining the movement of goods under India’s GST framework. It ensures proper documentation for every consignment, making the process transparent and hassle-free.
What is an E-Way Bill?
An E-Way Bill (Electronic Way Bill) is a mandatory document required for the transportation of goods valued over Rs. 50,000. This bill must be generated from the E-Way Bill portal (ewaybillgst.gov.in) before moving goods. The unique E-Way Bill Number (EBN) is shared with the supplier, recipient, and transporter.
Components of an E-Way Bill
An E-Way Bill consists of two parts:
- Part A – Contains details such as:
- GSTIN of the recipient
- Place of delivery (PIN code)
- Invoice/Challan number and date
- Value of goods
- HSN code
- Transport document number (e.g., Goods Receipt Number, Railway Receipt Number, Airway Bill Number, etc.)
- Reason for transportation
- Part B – Contains transporter details, such as the vehicle number.
When Should an E-Way Bill Be Issued?
E-Way Bill generation is required in the following cases:
- When goods worth more than Rs. 50,000 are transported.
- When goods are transported for supply, return, or inward supply from an unregistered person.
- For interstate movement of goods by a principal to a job worker or transport of handicraft goods by an exempted dealer.
Who Should Generate an E-Way Bill?
- Registered Businesses: Mandatory for consignments valued over Rs. 50,000.
- Unregistered Persons: If supplying to a registered recipient, the receiver ensures compliance.
- Transporters: If the supplier hasn’t generated the bill, the transporter must do so.
E-Way Bill Exemptions
An E-Way Bill is not required in the following cases:
- When goods are transported by a non-motorized vehicle.
- Goods moved under Customs bond.
- Transit cargo to/from Nepal or Bhutan.
- Movement of defense-related goods under the Ministry of Defence.
How to Generate an E-Way Bill?
E-Way Bills can be generated through multiple methods:
- E-Way Bill Portal: Using login credentials on ewaybillgst.gov.in.
- SMS Mode: By sending an SMS in the specified format.
- Mobile App: Available for Android users.
- API Integration: Businesses can integrate their ERP systems for automatic generation.
State-Wise E-Way Bill Rules & Limits
Each state has specific rules regarding E-Way Bill requirements. For instance:
- Kerala has made E-Way Bill mandatory for gold transportation, excluding imitation jewelry (HSN 7117).
- Goods under Chapter 71 (e.g., precious metals) are exempt from mandatory E-Way Bill generation under Rule 138(14) of the CGST Rules, 2017.
Validity of an E-Way Bill
The validity depends on the travel distance:
- 1 day for up to 200 km
- Additional 1 day for every 200 km thereafter
- Validity extension capped at 360 days from January 1, 2025.
Latest E-Way Bill Updates
- Two-Factor Authentication (2FA):
- Mandatory for businesses with an AATO over Rs. 20 Crores from January 1, 2025.
- Businesses with turnover Rs. 5-20 Crores must comply from February 1, 2025.
- All businesses must use 2FA for E-Invoice & E-Way Bill generation from April 1, 2025.
- Generation Deadline: Must be generated within 180 days from the invoice/document date from January 1, 2025.
Conclusion
The E-Way Bill system is an essential compliance mechanism under GST that facilitates the smooth movement of goods while reducing tax evasion. Businesses must stay updated with the latest regulations and leverage online tools for efficient compliance.
For expert assistance in E-Way Bill generation and GST compliance, connect with SAPTAX HUB LLP today!
