What is an E-Way Bill- Validity, Applicability, Rules & Procedure

An E-Way or Electronic way bill is an essential document which is required while transporting goods from one place to another. 

It consists of detailed information related to the shipment of the consigned goods. 

It specifies the origin and destination of the consignment along with its route and data about the consignee and consignor. 

This blog will explain the E-Way bill, the procedure to obtain it, its validity, the documents required and much more. 

What do you understand by an E-Way bill?

An electronic way bill is needed for the transportation of goods. The provision for the E-Way bill came into effect on 1st April 2018 after the new tax regime of GST was implemented. 

It is required for the shipment of goods valued at over 50k INR. It consists of a specific bill number which is unique for each consignment. 

You can freely transport goods from one place to another once you successfully generate the E-Way bill number (EBN).

When to Issue an E-Way bill?

You need an E-Way bill to transport the goods or consignment if its value exceeds 50k INR. 

This is applicable for both supply and return of goods. However, you may need to generate an E-Way bill even if the value of the consignment is less than 50k INR; in the following given conditions-

1. Interstate handicraft goods transportation by a seller is exempted from GST registration.
2. When the goods of a single consignment are transported using different vehicles where each vehicle contains goods lesser than 50k INR, however, the overall pricing must be over Rs 50,000 to satisfy this condition.

Who needs to generate an E-Way bill?

1. Registered Person- If you have registered in the ITD and have GSTIN, then you need to generate an E-Way bill for the movement of your goods valued over 50k INR. A registered person can choose to generate it even if the value does not exceed Rs 50,000 as per convenience.
2. Unregistered Person- even if you are not registered, you still need to generate an E-Way bill for the transportation of your goods. If the consignment is scheduled from an unregistered person to a registered person, then the person registered with GSTIN must make sure that all the compliances are properly met.
3. Transporters- the transporters carrying goods by different means of transport such as roadways, railways, airways, etc., also need to generate an E-Way bill for the movement of the goods. However, you are not required to generate the E-Way bill in steps similar to EWB-01 and EWB-02, which we will discuss in this blog. 

How to generate an E-Way Bill?

You can generate an E-Way bill by registering on the E-Way bill portal. Each registered GST taxpayer needs to generate an E-Way bill before transporting any goods. 

Only the registered taxpayers on the E-Way bill portal are eligible to generate it. 

The e-Way bill portal is a one-stop solution developed by the government of India to register and generate an E-Way bill. 

You can easily generate it online by following the steps given below-

1. Register on the E-Way bill portal online.
2. Generate your username and password by providing all the important details such as invoices, challan receipts, vehicle registration number, transportation document Id, mobile number, GSTIN (Goods and Services Tax Identification Number), etc.
3. The process of registration is now complete.
4. Log in using your generated username and password.
5. Click on ‘generate new’ from the dashboard under the E-Way bill option.
6. Provide the information given below as-

• If you are the supplier of the consignment, then select ‘Outward’. If you are the receiver, click on the ‘Inward’ option.
• Dates related to departure and arrival of the consignment.
• Documents for verification.
• Mode of transportation.
• Approximate distance.
• Details of the transportation vehicle.
• Description of the product.
• Data related to its quantity or number of units.
• Taxable value etc.

After filling in all this information, you will get a unique 12 digit and form EWB-01 will be generated. You can easily print it and keep a copy with yourself.

How to generate an E-Way bill for an unregistered business?

An unregistered business does not have a GSTIN, so they need to provide its business details to generate an E-Way bill. 

Follow the steps given ahead to generate an E-Way bill as an unregistered organisation:

1. Open the E-Way bill portal.
2. Select ‘enrolment for transporters'.
3. Ensure that you fill in all the information correctly in the form. It includes-

• PAN details
• Aadhaar card details.
• State and city in which your business is being operated
• Address details of your firm’s location
• E-mail and phone details.

1. Complete the process of verification by submitting the OTP.
2. Generate the username and password and click on ‘submit’.
3. After this, you will get a unique 15 digits transport Id which you can use and follow the same steps as mentioned above in the blog to generate the E-Way bill.

You can conveniently generate an E-Way bill by this method of e-invoicing or also by the method of SMS. 

Only the firms having GSTIN can use the SMS' procedure to generate an E-Way bill. You can verify your identity by means of an OTP, which you will get on your registered mobile number with GSTIN.

ESPECIA offers a wide range of services, including e-invoicing, preparing and filing returns, GST compliances and much more. 

We can also assist you with the process of generating an E-Way bill in a hassle-free way. 

What are the cases when an E-Way bill is not required?

1. When the mode of transportation is a non-motor vehicle.
2. When the goods are transported under customs seals and supervision.
3. When the goods are transported from the customs airport, port or cargo to ICD (Inland Container Depot) or CFS (Container Freight Station).
4. When the transit cargo is transported from or to Bhutan or Nepal.
5. When the Ministry of Defence initiates the transportation as the consignee or consignor.
6. When the consignor of the goods is, the Central or State Government and the goods are transported by means of Railways.

What is the validity of an E-Way bill?

The validity of an E-Way bill is 1 day for a distance lesser than 200 km. An additional day is given for every 200 km. 

The period of this validity is counted from the time of the generation of the E-Way bill. 

However, the validity can also be increased in accordance with the type of climate and the goods associated with the procedure.

Advantages of E-Way Bill-

1. Less Documentation- now, there is no requirement to manage and sort heaps of files for records and proofs. An E-Way bill is an authentic document that can serve as a whole for all transportation-related documents. You no longer have to keep physical copies of the important documents in your vehicle. An E-Way bill is recognised in the whole nation.

• An efficient and fast system of Transportation- the E-Way bill system has helped reduce the number of checkposts across the state borders and the national highways. This has made the whole system of transportation much faster and more efficient than before.
• Cost-Effective Approach- the logistic cost has been reduced to a large extent by the reinforcement of paper invoicing. Also, avoiding taxes with an electronic way bill mechanism is impossible. Payment of taxes on time is beneficial for the government of our nation. It leads to a developed economy in any country. 
• Simple and Quick- the process associated with the generation of an E-Way bill is very easy and simple. Each step is accomplished using a government-set online portal. The interface of the E-Way bill portal is user-friendly, which can help people to generate electronic waybills themselves. Generation and facilitation of the bill linked with this procedure are uncomplicated, even for a layman.

Disadvantages of E-Way bill-

• Internet-based System- the generation of an electronic bill solely depends on the availability of a good internet connection. There are so many places in our country where internet services still need to be available. In such cases, the process of generating an E-Way bill becomes difficult. This is more prevalent in the industries set up in small villages and forest areas.
• Challenges interlinked with extension- the extension of the waybill creates multiple bill numbers for a single invoice. This causes duplication and leads to further complications.
• Technical Consequences- the E-Way bill portal has the capacity to generate up to 75 lakh waybills daily. This causes a heavy load on the servers throughout the day. Technical glitches are common because of multiple unavoidable attempts by different people to generate an E-Way bill.

Importance

Organisations must generate an E-Way bill before the transportation of their goods. 

It is essential to track the product and helps in keeping a check on tax evasion. 

It is an effective tool to ensure that the transported goods comply with the new tax regime of GST. 

• No illegal trade is possible with this amendment.
• You must pay off the mandatory taxes.
• Transparency is ensured by both the supplier and the receiver.
• All the documents are verified and registered at the ITD, so there is no room for corruption.
• Each consignment is settled quickly because of its strict policies associated with validity.

Conclusion

Above in the blog, we have discussed the importance of an e-way bill for the transportation of goods from one place to another. 

An organisation must generate an electronic way bill for all their consignments that are being supplied or received. 

The time constraint linked with the verification of hundreds of pages has now stopped hindering the growth of businesses.

A new system of E-Way bills developed by our nation's government has revolutionised the transportation workflow. 

However, the authorities are still working to remove the existing problems with this system in order to attain perfection.

FAQs Related to E-way Bill

1. What is an E-Way Bill?

An E-Way or Electronic way bill is an essential document which is required while transporting goods from one place to another. It consists of detailed information related to the shipment of the consigned goods, along with the origin and destination of the consignment. It also consists of the route, distance and data about the consignor and consignee.

2. Should I generate an E-Way bill for a consignment of value less than 50k INR?

Although it is not legally mandatory, a registered person or a transporter can generate an E-Way bill for a consignment value of less than 50k INR.

3. What if the E-Way bill is generated, but the goods are not transported?

The E-Way bill can be cancelled using the portal if you fail to transport the goods. However, this will only be possible if the waybill has been verified during transit.

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