The Goods and Services Tax (GST) regime in India established an innovative method known as the GST E-Way Bill, or Electronic Way Bill. For the movement of products worth at least ₹ 50,000 between states or within a state, this digital document is necessary. By enhancing tax responsibility, minimizing down on paperwork, and guaranteeing compliance, the system is intended to expedite the flow of products. Before goods are carried, the E-Way Bill, which includes important information about the consignor, consignee, goods being transported, and transport vehicle, must be created on the GST portal. The GST E-Way Bill system has improved the efficiency of India's supply chain network, reduced tax evasion, and simplified logistics by automating this procedure.

Applicability of E-Way Bills

The generation of an e-way bill is mandatory for the transportation of goods valued above ₹50,000 per consignment. This requirement applies regardless of whether the movement is for supply, reasons other than supply, or inbound supply from an unregistered person.

The e-way bill system is applicable to both inter-state (across state boundaries) and intra-state (within the same state) movements of goods. For intra-state transactions, its implementation has been carried out in phases.

Certain categories of goods, such as those falling under Chapter 71 (precious metals and stones), are exempt from the obligation to generate e-way bills, as per Rule 138(14) of the Central Goods and Services Tax (CGST) Rules, 2017.

E-way bills can be generated by registered suppliers or recipients. Additionally, unregistered transporters possessing a valid transporter ID are also authorized to generate these bills.

Registration Process for the E-Way Bill Portal

All GST-registered businesses and transporters intending to generate or manage e-way bills are required to register on the official e-way bill portal (ewaybillgst.gov.in).

Steps for Registration:

  1. Visit the e-way bill portal and navigate to 'Registration' > 'E-way Bill Registration'.
  2. Enter your GSTIN and the provided captcha code, then click 'Go'.
  3. Verify the auto-filled details and request an OTP, which will be sent to your registered mobile number.
  4. Enter the OTP, create a username and password, and finalize the registration process.

Transporters not registered under GST have the option to complete a separate enrollment process to obtain a transporter ID.

Login

Access the portal at ewaybillgst.gov.in and use your registered username and password to log in.

If you forget your credentials, use the “Forgot Username” or “Forgot Password” options, which require OTP verification.

From July 2023, businesses with a turnover above ₹100 crore must use two-factor authentication for added security.

Generation of E-Way Bills

E-way bills can be generated using:

  1. The official online portal
  2. SMS service
  3. Android application
  4. API integration, specifically designed for large-scale businesses

Steps to Generate an E-Way Bill

  1. Log in to the e-way bill portal.
  2. Navigate to the 'Generate New' option under the e-way bill section.
  3. Complete Part A by providing transaction details, including GSTIN, invoice number and date, value of goods, HSN code, and the reason for transport.
  4. Complete Part B by entering transporter details such as the vehicle number or transporter ID.
  5. Submit the form to generate the e-way bill, which creates a unique E-way Bill Number (EBN). This number is shared with the supplier, recipient, and transporter.

Validity Period

The e-way bill remains valid for one day for every 100 kilometers or part thereof.

Time Frame for Generation and Extension

E-way bills must be generated within 180 days from the date of the invoice or document. Extensions are permissible, but the maximum duration cannot exceed 360 days from the original generation date.

Format

The standard e-way bill Form GST EWB-01 is divided into two parts:

Part A: Details of the Shipment (GSTIN of recipient, place of delivery, invoice/challan number date, value, HSN code, reason for transport, transport document number).

Part B: Transport details (vehicle number or transporter ID).

Key fields in the e-way bill format include:

  1. E-Way Bill Number and Date
  2. Generated By
  3. Valid From/Until
  4. Place of Dispatch and Delivery
  5. GSTINs of supplier and recipient
  6. Item details (name, HSN, quantity, value, tax rates)
  7. Transporter details (mode, ID, vehicle number).

Rules

  1. E-way bill is mandatory for goods valued over ₹50,000, with exceptions for certain goods and transactions.
  2. The bill must be generated before the commencement of movement of goods.
  3. Both supplier and transporter are responsible for compliance; the transporter must carry a copy of the e-way bill or the EBN in physical or electronic form.
  4. The validity of the e-way bill is based on the distance to be travelled, and extensions are allowed only within prescribed limits.
  5. Failure to generate or carry an e-way bill can result in penalties and confiscation of goods.

Conclusion

The GST E-Way Bill system has revolutionized India's logistics by digitizing the movement of goods valued at ₹50,000 or more. It ensures compliance, reduces paperwork, and enhances tax accountability. With mandatory registration, easy generation methods, and defined validity periods, it simplifies transportation while curbing tax evasion. Applicability covers inter-state and intra-state movements, with exemptions for specific goods. Adhering to the rules is essential to avoid penalties. Overall, this system promotes efficiency and transparency in India's supply chain, benefiting businesses and the economy.