Electronic Waybill (e-Way bill) is an electronic document generated on the GST portal for evidencing the movement of goods. It is a unique reference number generated for the specific consignment which involves the movement of goods. If the invoice value is ₹ 50,000 or above, all registered dealers must generate an e-Way Bill for the interstate movement of goods.
The e-Way bill needs to be generated for all types of movement of goods interstate and intrastate.
If a registered dealer is shipping material worth more than ₹ 50,000, then he should generate an e-Way Bill from the portal by entering necessary information such as the details of the buyer, the stock details, quantity, and HSN code of the goods, transporter ID, and so on. After he uploads these details, an e-Way Bill with a 12-digit number will be generated for this transaction. He must print the e-Way Bill number and other details along with the Tax Invoice, and furnish them on the way, as needed. An assessing officer might inspect the shipment on the way, and they might verify the e-Way Bill information with the actual goods being transported.
An e-Way bill can also be generated and raised for the goods worth less than ₹ 50,000 if the Supplier wishes to.
Components of e-Way Bill
e-Way Bill has two Components: Part-A and Part-B. Form EWB-01 component details are shown in Table 1.1
Part-A (Form EWB – 01) | Details to be mentioned |
GSTIN of recipient | Receiver GSTIN number if the receiver is unregistered then remark “URD” |
Place of delivery (PIN Code) | PIN code of place of delivery (Mandatory field) with approximate distance. |
Invoice or challan number and Date | Invoice or challan number /date of Supplier |
Value of goods | Value as per Invoice or Challan number |
HSN code |
|
Transport document number | Goods Receipt Number/ Railway receipt number/ Airway bill number/ Bill of lading. |
Reasons for transportation | Reason for transportation like sale, job work, import/export, exhibition, etc. |
Part B (Form EWB – 01) | Details to be mentioned |
Mode of transport
| The mode of transport. i.e., Road, Air, Rail, or by Ship. |
Distance in (KM) | Need to enter the travel distance in Kilometres. |
Vehicle Number | Vehicle Number of the Regular/Over Dimensional Cargo transporting goods to the customer. |
Transporter ID | Identification Number is given to the transporter/dealer for transporting goods under the GST regime. |
Table 1.1
Who must generate an e-Way Bill?
Consignor/ Registered Supplier: When the Consignment is caused by a registered person as a consignor.
Consignee/ Registered Receiver: When the Consignment is caused by a registered person as the consignee. Where goods are supplied by an unregistered person as the consignor to a registered Recipient.
When goods are transported by a registered person, either acting as a consignee or consignor in his vehicle, hired vehicle, railways, by air, or by vessel, the supplier or recipient of the goods should generate the E-Way Bill.
Validity of e-Way Bill
The Validity of the e-Way Bill is 1 day for any distance up to 200 Kilometres and thereafter an additional one day for every 200 Kilometres or part thereof. This applies to a regular vehicle. The validity can be extended online before the expiry. The e-Way Bill with a consignment should have the latest vehicle number which is carrying the consignment.
For Over Dimensional Cargo, 1 day for any distance up to 20 Kilometres and thereafter an additional one day for every 20 Kilometres or part thereof. (Over Dimensional Cargo is the cargo that extends beyond the dimensions as prescribed for a vehicle).
Benefits of the e-Way Bill System
- Streamlined Logistics: With the e-way bill, the process has become digital, ensuring quicker movement of goods and reduced transit times.
- Enhanced Transparency: The e-way bill system enhances transparency in the movement of goods by making critical information available to tax authorities in real time.
- Reduced Tax Evasion: The e-way bill mechanism assists tax officials in tracking the movement of goods and cross-verifying the information provided by taxpayers.
- Avoidance of Detention and Confiscation: By generating an e-way bill, businesses can prevent their goods from being detained or confiscated during transportation.
- Nationwide Standardization: The GST e-way bill system operates uniformly across the country, enabling businesses to transport goods seamlessly across state borders without having to deal with varying state-level documentation.
- Cost and Time Savings: The digitalization of the transportation process through e-way bills has led to cost savings for businesses.
Conclusion
The GST e-Way bill has emerged as a game-changer in India’s logistics and transportation sector. Its digital approach has streamlined inter-state trade, minimized tax evasion, and fostered transparency in the movement of goods. While there may be some challenges to address, the overall benefits of the e-way bill system are undeniable. As the Indian economy continues to grow, the e-way bill system will play a pivotal role in facilitating seamless trade, strengthening tax compliance, and contributing to the nation’s economic progress.