E-Way Bill: A Complete Guide

The Electronic Way Bill (e-Way Bill) system is a crucial component of the Goods and Services Tax (GST) regime in India. It is a digital mechanism designed to facilitate the smooth movement of goods across the country. This system has replaced the former waybill system under the Value Added Tax (VAT) regime and aims to simplify and standardize the process of transporting goods.

In this blog, we will understand the details of the e-Way Bill system, its objectives, and the procedures involved in its generation.

State-wise e-Way Bill Updates

EWB generation has been made mandatory for inter-state supplies from April 1, 2018, and for intra-state supplies from April 25, 2018, in certain states (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Puducherry).

An e-Way bill isn’t required for the movement of goods that involve registered sellers and unregistered customers, within the state of Delhi.

As of 6th June 2018, an e-Way bill is required to be generated only when transporting goods worth more than Rs. 1 lakh, within the state of West Bengal.

As of 2nd June 2018, an e-Way bill is required to be generated only when transporting goods worth more than Rs. 1 lakh, within the state of Tamil Nadu.

What is an e-Way Bill?

The e-Way Bill system is governed by Section 68 of the Central Goods and Services Tax (CGST) Act and Rule 138 of the CGST Rules, 2017. An e-Way Bill is a digital document that contains vital information about the movement of goods with a value of over Rs.50,000.

An e-way bill includes details such as the name of the consignor, consignee, transporter, the point of origin, and the destination of the goods. It is a compliance mechanism where the person responsible for the movement of goods uploads the relevant information before the commencement of the journey and generates the e-Way Bill on the GST portal.

When is an e-Way Bill generated?

50,000, whether for supply, non-supply reasons, or inward supply from an unregistered person, must electronically furnish details on the common portal.

Supply of Goods: When there is a supply of goods from one registered person to another, and the consignment value exceeds fifty thousand rupees, the registered person needs to generate an e-way bill.

For Reasons Other Than Supply: If goods are being moved for reasons other than supply, and the value of the consignment is over fifty thousand rupees, an e-way bill is required.

Inward Supply from an Unregistered Person: When a registered person receives goods from an unregistered person, and the value of the consignment is more than fifty thousand rupees, an e-way bill must be generated.

Principal to Job Worker Movement: When goods are sent by a principal located in one state or union territory to a job worker located in any other state or union territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment.

Transportation of Handicraft Goods: If handicraft goods are transported from one state or union territory to another by a person exempted from obtaining registration, the e-way bill shall be generated by that person, irrespective of the consignment value.

It's essential to note that the e-way bill needs to be generated before the commencement of the movement of goods, and the information should be furnished electronically on the common portal specified under the GST system.

When is it not required to generate an e-way bill?

As per the Goods and Services Tax (GST) regulations in India, there are certain situations and categories of goods where it is not required to generate an e-way bill. Here are the circumstances when an e-way bill is not mandatory:

1. The movement of goods by a non-motorized conveyance.
2. Transportation of goods from a customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or a Container Freight Station (CFS) for clearance by Customs.
3. The movement of empty cargo containers.
4. Transportation of alcoholic liquor for human consumption, petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas, or aviation turbine fuel.
5. Movement of goods under customs bond, under customs supervision, or under customs seal.
6. Where the goods being transported are transit cargo from or to Nepal or Bhutan.
7. Movement of goods specified in the Annexure to Rule 138(14)
8. Transportation of goods, other than de-oiled cake, specified in the Schedule appended to Notification No 2/2017- Central tax (Rate) dated the 28th of June,
9. Movement of goods within areas as notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory.
10. Where the supply of goods being transported is treated as No supply under Schedule III of the Act.
11. Movement of goods caused by defence formation under the Ministry of defence as a consignor or consignee.
12. Where the consignor of goods is the Central Government, Government of any State, or a local authority for the transport of goods by rail.
13. Where the goods are being transported up to a distance of 20 kilometres from the place of the business of the consignor to a weighbridge accompanied by a delivery challan issued in accordance with rule 55.

What is the Validity of an e-Way Bill?

The validity of an e-way bill is determined based on the distance to be traveled by the goods being transported. The validity period starts from the time of generation of the e-way bill. Here is the validity period for e-way bills,

What is the format of the e-Way Bill?

The E-Way Bill, or GST EWB-01, is divided into two parts: Part A and Part B. Part A contains the products’ information, while Part B contains the vehicle’s identification number.

Part-A

Part A of the e-way bill (FORM GST EWB-01) is typically filled by the supplier or recipient of the goods. It includes details such as the GSTIN of the recipient, place of delivery, invoice details, etc.

In the case of transportation by road, the supplier or recipient must generate Part A of the e-way bill.

Part A of E-Way Bill contains the following information,

GSTIN of Recipient: This is the Goods and Services Taxpayer Identification Number (GSTIN) of the person to whom the goods are being shipped.

Place of Delivery: The location where the goods are intended to be delivered.

Invoice or Challan Number: The number of the invoice or challan related to the consignment of goods.

Invoice or Challan Date: The date of the invoice or challan.

Value of Goods: The total value of the goods being transported.

HSN Code: The Harmonized System of Nomenclature (HSN) code for the goods.

Reason for Transportation: The reason for the transportation of goods (e.g., supply, export, import, job work, etc.).

Transport Document Number: The document number of the transport by road.

Part-B

Part B of the e-way bill (FORM GST EWB-01) is filled by the transporter. It includes details like the vehicle number and transport document number.

The transporter can also update Part B if there is a change in the vehicle or other details during the transportation.

Part B of E-Way Bill contains the following information,

Vehicle Number: The vehicle number in which the goods are being transported.

Transporter ID: The identification number of the transporter, if applicable.

Transport Document Number: The document number of the transport document generated for the specific mode of transportation.

What are the documents required to generate an e-Way Bill?

The following documents are required for generating an e-way bill,

• Invoice/ Bill of supply/ Challan relevant to the consignment of goods
• Transport by road- The transporter ID or the vehicle number
• Transport by rail, air, or ship- Transporter ID, Transport document number, and date.

How to generate an e-Way Bill on Portal?

Given below are the steps to generate EWB on the e-way bill portal,

Step 1: Log in to the e-way bill system, enter the required details, and click on ‘Login’.

Step 2: Click on ‘Generate new’ under the ‘E-waybill’ option.

Step 3: Enter the mandatory fields required to be filled.

Step 4: Click on ‘Submit’, e-way bill in Form EWB-01 form with a unique 12-digit number is generated.

Step 5: Take a printout of the EWB that is required to be carried for transporting the goods in the selected mode of transport and the selected conveyance.

How to generate an e-Way Bill on Webtel’s e-Way Bill Generation Solution?

 Webtel’s EWB software is an advanced utility that simplifies the process of e-Way Bill Generation and offers a seamless EWB generation experience. Some of the distinctive features of Webtel’s e-Way Bill Software include,

• Achieve seamless integration with various ERPs or accounting software for effortless e-Way Bill generation. Webtel's EWB solution allows easy integration with ERPs like SAP or Oracle.
• Upload data in bulk and generate multiple e-Way Bills with a single click, eliminating the need for manual efforts.
• Ensure accuracy and compliance in EWB generation. The software includes robust data validation checks to ensure accuracy without manual intervention.
• Save valuable time and effort by leveraging Webtel's smart and automated EWB generation utility, ensuring precision and compliance with e-Way Bill regulations.
• Maintain data security and privacy, as Webtel's software is designed to be 100% secure with real-time data monitoring.
• Benefit from dedicated end-to-end support provided by Webtel to address any software-related doubts, issues, or queries, enhancing your overall e-Way Bill generation process and user experience.

E-Way Bill FAQs

1. How to rectify a mistake or wrong entry in the e-way bill?
If there is a mistake, incorrect, or wrong entry in the e-way bill, then it cannot be edited or corrected. The only option is to cancel the e-way bill and generate a new one with the correct details.

2. Can a single e-way bill be generated for multiple invoices belonging to the same consignor and consignee?
If multiple invoices are issued by the supplier to the recipient, that is, for the movement of goods of more than one invoice of the same consignor and consignee, multiple EWBs have to be generated. Multiple invoices cannot be clubbed to generate one EWB.

3. Can the validity of the e-way bill be extended?
Yes, the validity of the e-way bill can be extended. The transporter needs to explain this reason in detail while extending the validity period.

4. Can the e-way bill be deleted or canceled?
The e-way bill once generated cannot be deleted. However, it can be canceled within 24 hours of generation.

5. What is a consolidated e-way bill?
 A consolidated e-way bill is a document containing multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter, carrying multiple consignments of various consignors and consignees in one vehicle can generate and carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.