E-Way Bill Under GST Rules in India


The government has introduced the concept of E Way Bill under GST, after abolishing the Border Commercial Tax Post to avoid tax evasion in India.

In this guide we will explain you each and every aspect, rule and answer all the queries related to e-way bill system under GST in India.


This guide shall cover –

  • What is the meaning of E way bill?
  • Under which section e way bill is required?
  • What is the date from which e way bill has been made compulsory?
  • What are the benefits of e way bill?
  • How does the e way bill mechanism works?
  • What is the official or government website for generating E Way Bill?
  • When e way bill is required to be generated?
    • Is e-way bill required even when the consignment value is less than 50000?
      • Inter state transfer of Goods for Job Work
      • Inter State transfer of handicrafts items(by person exempted from gst registration)
  • When e way bill is Not Required to be generated ?
  • Which form needs to be filled for generation of e-way bill and by whom?
  • What documents are required to generate e way bill?
  • How to register for e-way bill?
    • Process for Registration on e-way bill portal through SMS
    • Process for Registration on e-way bill portal using Android
    • The Process for Registration on e-way bill portal using web portal
      • Registration by Taxpayers on the e-Way Bill System
      • Registration for unregistered transporter on the e-Way Bill System
  • How to generate E Way Bill web portal?
  • What is Bar Code in generated E way bill?
  • How to cancel e-way bill?
  • What is the Penalty for non-compliance of e-way bill?
    • As per section 129 of CGST Act,2017
      • Where the owner of the goods comes forward for payment of tax and penalty
      • Where the owner does not come forward for payment of such tax and penalty
    • As per section 122 of the CGST Act,2017
  • What is the Validation period of e way bill or consolidated e way bill?
  • What is consolidated bill?Is e-way bill and consolidated e way bill are same or different?

What is the meaning of E way bill ?

The full form of E-way bill means electronic way bill. E-way bill will be applicable to the movements of goods in both inter and intra State Transportation.

To put it simply like the name suggests it is an electronic document generated from the e-way bill portal ewaybillgst.gov.in evidencing movement of goods. It is basically a compliance mechanism under GST wherein by way of a digital interface the person causing the movement of goods (consignor/seller) uploads the relevant information prior to the commencement of movement of goods and generates e way bill on the GST portal.

It contains the following details-

  • Name of consignor
  • Consignee
  • The point of origin of the consignment
  • Destination details and
  • Route

As per the gst rules, every person registered under GST, who causes the movement of goods of consignment value more than Rs.50000, is required to furnish the details of the said goods in a specified form (e-way bill), before the commencement of such movement of goods.


Under which section e-way bill is required?

The Statutory requirement of e-way bill is covered under Section 68 of the CGST Act & Rule 138 of the CGST Rules, 2017.


What is the date from which e-way bill has been made compulsory?

The system of e-way bill has been made effective from 01.04.2018 for inter state movement of goods. E way bill on Intra-state movement of goods shall be done in a phased manner.


What are the benefits of e way bill ?

The e way bill mechanism has numerous benefits. It will –

  • Facilitate faster movement of goods.
  • Improve the turnaround time of trucks since the checkpost have been abolished.Thus, will benefit the logistics industry by reducing the travel time and cost as well as increasing the distance travelled.
  • User friendly e way bill generating system. This means, there is no need to visit e way bill department for generation of e way bill as this was the major hardship in existing system. The e-way bill can be directly generated online.
  • The entire system is online, thus avoiding tax evasion.

How does the e-way bill mechanism works?

Every person who falls under the e-way bill compliance, is required to first register on the common portal. Post that they can generate the e-way bill. Upon generation of the e way bill on the common portal, a unique e way bill number shall be made available to all the three parties,on the common portal i.e.

  • The supplier,
  • The recipient and
  • The Transporter

After filing of Part A of form GST EWB-01, there is a mechanism on the common portal for the other party to see the e-way bill generated against his/her GSTIN.

Now the other party is required to either give acceptance or rejection of such consignment specified in the e-way bill. Please note that, if the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill or the time of delivery of goods whichever is earlier, it will be deemed that he has accepted the details.

Important Note – Update Part B/ Vehicle number

Once the e way bill is generated you cannot edit the e way bill. However, Part B of e way bill in which the Vehicle number is mentioned, can be updated by the transporter. Updation is done in case he is sending goods with other vehicle or due to vehicle damage.


What is the official or government website for generating E Way Bill?


When e way bill is required to be generated ?

As per Rule 138 of CGST Act, 2017, whenever there is a movement of goods, then every registered person who causes movement of goods having consignment value exceeding Rs 50,000 is required to generate e way bill. However, there are some exceptions to this rule

  1. In relation to supply
  2. For reason other than supply
  3. Due to inward supply from unregistered person

shall furnish information relating to the said goods in Form GST EWB-01, before the commencement(start) of such movements.


When e-way bill is required even when the consignment value is less than Rs 50,000?

There are some situations in which e-way bill is generated even when the value of consignment is less than Rs 50,000

  • Inter state transfer of Goods for Job Work :

Where the goods are sent by principal located in one state to a job worker located in other states, the e-way bill shall be generated by the principal irrespective of the value of the consignment.

  • Inter State transfer of handicrafts items(by person exempted from gst registration):

Irrespective of the value of consignment e way bill shall be generated where, handicraft goods are transported. These people are otherwise exempt from taking registration u/s 24 of the CGST Act 2017.

For the purpose of this rule, the expression “handicraft goods” has meaning as assigned to it in the government of india, Ministry of finance, notification no. 32/2017-Central tax dated 15.09.2017 published in the gazette vide number G.S.R. 1158(E)

You can also read this notification in Hindi.


When e way bill is Not Required to be generated?

No e way bill shall be generated in following cases

  • Where the goods are being transported by non-motorised conveyance like the goods transferred by animals carts.
  • When goods transported for the clearance by customs from the custom port, airport, air cargo complex and land custom station to an inland container depot or container freight station.
  • When movements of goods happens within such area as specified by the particular state or union territory under GST rules
  • Where the tax exempt goods( other than de-oiled  cake) being transported
  • Where the goods mentioned in negative list are being transported. These include alcoholic liquor for home consumption, petroleum crude, high speed diesel, motor spirit known as petrol, natural gas  or aviation turbine fuel.

Before understanding the process for generation of e-way bill. Let us have a look at the documents to be kept ready for the e-way bill generation


Which form needs to be filled for generation of e-way bill and by whom?

Form GST EWB-01, can be used for the generation of e-way bill when the goods are transported by

  • The registered person as a consigner or the recipient of supply as the consignee,
  • Through any mode- in his own conveyance or a hired one or by railways or by air or by vessel.

Form GST EWB-01 has two parts – Part A & Part B.

  • Part A of Form GST EWB-01 contains the information of invoices, supplier, receiver and items in invoice with HSN code and tax rates.
  • Part B of Form GST EWB-01 contains the details of transporter like mode of transfer, approximate kilometers, Name, Transporter Id, date, vehicle number.

Related GST Notification : Notification No.27/2017– Central Tax  Notification in hindi

Please note that e-way bill shall only be considered to be generated after furnishing information in Part B of form GST EWB-01.

Since, there are multiple parties involved, to avoid confusion we have summarized who is required to fill which part of the Form GST EWB-01:

Goods transport byConveyanceMandatory condition Form and part
Registered person under GST as a consignor or the recipient of supply as the consignee(goods not handed over to the Transporter)Own conveyance orHired or By railway or By air or By  vesselBefore commencement of such  movementGST EWB-01Part B
When goods are handed over to the transporter  for transportation by roadTransporter conveyanceBefore commencement of such movementPart A
The transporter on behalf of registered dealer(On the basis of information given by the registered person in Part A)Transporter of the conveyanceBefore commencement of such  movementPart B
Unregistered person(He or the transporter)Own conveyance  or A hired one orThrough transporterBefore commencement of  movementGST EWB-01
Unregistered person to registered person(Recipient person will fulfill the compliance)Own conveyance  or A hired one orThrough transporterBefore commencement of  movementGST EWB-01


What documents are required to generate e way bill?

Undermentioned documents are required for generating E way bill

  1. Tax invoice, Bill of Supply, Delivery Challan
  2. Transporter ID and vehicle number
  3. Transport document number (When transport is done by rail or ship or air )

How to register for e-way bill?

Under the e-way bill system, for registration on common portal there are different modes available.These are- .

1. By SMS

2.Android application

3.Web based mode

4.API based and

5.GST Suvidha Providers.

For all these modes, the user needs to first register on the web based system.


What is the process for Registration on e-way bill portal through SMS?

User needs to have the registered mobile number which he/she used for registration on the e way bill portal. Once the user selects option ‘for SMS’ under main option ‘Registration’, following screen is displayed.


Then user needs to enter the OTP received on the registered mobile number and mail ID, verify the.details The system validates the OTP and directs the user to the following screen.

Next, the user needs to select the User id from the drop down menu. The mobile number of the selected user will be auto populated by the system.

Please Note: A taxpayer can register a maximum of 2 mobile numbers for the m-Waybill purpose.

Once the user gives the submit request the particular user can generate e-Way Bill through SMS system.


What is the process for Registration on e-way bill portal using Android app?

The e way bill can also be generated through the mobile application directly. But for this system enables the user needs to first register on the common-portal with the android mobile details from which e-way bill shall be generated.

Let’s understand the steps for this-

Step 1: Click on this link . https://ewaybill.nic.in/

Step 2: Click on the ‘android’ under the option ‘Registration’

  • Once a user selects ‘For Android’ under the ‘Registration Option’ , the following screen is shown.


  • After completing the same process as mentioned above.The following screen will open

  • The user needs to select the user id from the drop down menu, name and place will be auto populated by the system.

  • There is an option, to generate the e-way bill from the mobile application directly. For availing this facility the user needs to select “Yes” option under  “Do you want to enable android app” option.

  • Post this, you will be required to enter the IMEI number of the concerned user, who will be authorised to generate e-way will on your behalf. Then click on save details in the e-Way Bill system.

  • Once saved, the authorised user will be able to generate e-Way Bill through android application.

How to Register for e-way bill using web portal?

The e way bill can also be generated through the web portal directly. The user can register by using web portal on his browser. There are two types of registration options available:

  1. Registration by the taxpayers on the e-Way Bill System
  2. Registration for unregistered transporter on the e-Way Bill System

Let us understand each one in detail.


How Registration is done by the Taxpayers on the e-Way Bill System?

The registration mechanism for the GST taxpayers under the e-Way Bill system is a very simple process. It needs to be done only once.

Let’s understand the step-by-step process-


  • On the e-Way Bill portal, first time GSTIN can be registered by clicking on the ‘e-way bill Registration’ link under “Registration” option.

  • The user needs to enter his/her GSTIN number along with the displayed captcha and shall click ‘Go’ to submit the request.

  • Then, the user will be redirected to the ‘e-Way Bill Registration Form’. The registration form is shown below. Which will have these auto populated details – Applicant name, Trade name, Address, Mail ID and Mobile Number.

  • If the details have been changed or are incorrect, then click on ‘Update from GST Common Portal’ button to pull the latest data from the GST Common Portal. Else, click on ‘Send OTP’ to get the OTP. Once OTP is received on the registered mobile number, enter the OTP and click on ‘verify OTP’ to validate the same.

  • Next, enter your choice of User ID or username, which you plan to use to operate account on this system. A Unique user name should be given. It should be about 8 to 15 alphanumeric characters and can include special characters as well.

  • Once a request for the registration is submitted, the system validates the entered values. Pops up with the appropriate message for any error will be shown. Else, the username with password is created and registered with e-Way Bill System.

  • You can now use this registered username and password to work on the system.

What is the process of Registration for unregistered transporter on the e-Way Bill System?

The transporter, who is un-registered in GST system, cannot register using the previous options. He/she needs to enrol on the e-way bill system by providing his business details. These details include

  • PAN details,
  • Business type,
  • Business place,
  • Aadhaar or
  • Mobile authentication.

After verification of  these details, the system generates 15 character Transporter ID and user credentials.

Let’s understand the step-by-step process for the registration or enrollment of the un-registered transporter on GST Portal-



  • After this the system will show up the following screen or form. Fill in the details as explained below to proceed.

  • Select the State and enter the legal name as given in the PAN number and click of ‘Validate’ button.

  • Then select the type of enrolment and constitution of business (Partnership, Proprietorship, Public/Private Limited etc.)

  • Enter the business details and contact details which includes the details of “Address”, “Email Address”, “Telephone Number” and “Nature of Premises”.

  • Next, mention the Aadhar number details of the proprietor or main person of the company/firm.

  • Upload the Address and ID proofs (PoA and PoI) by clicking on the respective ‘Upload’ buttons.

  • Afterwards, enter the username and password that you like and wish to use for future login activities.

  • Click on the checkbox to declare that the given information is correct to the best of your understanding.

  • Click on  the ‘Save’ button to complete the process.

  • The system will now generate the 15 digits TRANS ID. This TRANS ID, can be provided by the transporter to his clients. Which would e used by client to fetch auto populated information in the e-way bill system. It will also enable the transporter to enter the vehicle number detalis for the generation of e-way bill.

How to generate E- Way Bill through web portal?

The e-way bill can be generated through the web portal directly. Let us understand the sequential process for the same


  • Click on the login and type the username , password and captcha code

  • The e way bill portal will be as displayed after login as under


  • Then we need to click on “E-way bill” option as given in the image below.


  • After selecting the e way bill option, E-way bill Entry form EWB-01 will be displayed as under

  • Then select the Supply type as

            Outword : If you are supplying the goods or

            Inward:     If you are receiving the goods

When you are selling your goods to another person then you need to select the Outward option and if you are purchasing the goods, you can select the inward type.

However, when you select the option of inward then there is a change in Sub type also.


  • Then select the Sub Type of your transaction

In Case of outward type  

Select amongst the applicable or feasible option as Supply, Export, Job work, SKD/CKD, Recipient not known, For own use, Exhibition of  Fair, Line sales, others

In case of inward Type

Select amongst the applicable or feasible option as Supply, import, SKD/CKD, Job work returns, sales return, Exhibition of fair, for own use, others

Supply

When goods are being transported for consideration in the course of furtherance of business.

Export

When goods are transported to another country.

Job work

When goods are being sent to do job worker for further process.

SKD/CKD(Semi knocked down or Completely knocked down)

When goods are being sent in a dissemble form.

Recipient not known

When sale event depends upon the approval, in this case, the recipient is not known.

For own use

When the goods are being transported for your own use.

Exhibition of Fairs

When goods are being sent for Exhibition.

Line sale

When products are carried in bulk to sale separately to different dealers like Pepsi Van selling bottles to small retailers.

Other

Not covered above.


  • Then, we need Select the document type –

Here select the document you are using for generating for E-way bill like Tax Invoice, Bill of supply, Delivery Challan etc

Tax invoice:- Registered dealers can select the option of Tax invoice because he is charging taxes in his invoice.


Bill of Supply:- As per GST law Composition dealer can not charge taxes in his invoice so in this case he needs to issue bill of supply.


Delivery Challan :- In case of job work, exhibition of fairs, own use or sales return there is no option available except delivery challan because there is no need to issue tax invoice in case of these category.


  • Next, you are required to mention the “document number” and document date of respective documents which were selected in document type.

Under the “Transaction Type” make selection amongst these :-

Regular:- When there is only one seller and one purchaser

Bill to ship to :- When you are billing to the other party and shipping the goods to other than billing party on behalf of the billing party.

Bill from and ship from:- When you are billing from registered place and dispatch the goods from another place.


  • Next, the details of place, from where we transferred the goods to the place these goods are delivered needs to be entered. Information such as Name, GSTN, State, Address, Place, Pincode needs to be mentioned. However, practically the details of seller, is already auto populated.

If you are sending the goods to Unregistered dealer than you need to type in GSTN detail “URP”.

Then after, you have to mention the name of unregistered dealer as it is mandatory when you  sending the goods to unregistered dealer


  • After that we need to mention the details of items like product name, description, HSN, quantity, taxable value, tax rates etc. There is an option to add multiple products as well.


  • After that we need to mention the detail of transporter like name, transporter id, approximate distance. However Transporter name and id is not mandatory fields but you have to mention the distance.

  • Post that we need to mention the Transporter details in part B of EWB-01

First we need to choose the mode of transport like Road, Rail, air, and ship

Second select the vehicle type Regular and over dimensional cargo.

[Over dimensional cargo means a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rules 93 of the central motor vehicle rules, 1989, made under motor vehicles act, 1988]

Third we need to type the vehicle number.

Fourth transporter document number if available and date.


  • Click on preview to check that the details mentioned are correct or not. After verifying that all the details entered are correct, we need to click on submit to generate the challan.

Congratulations, now the e-way is generated!


You can also print the single e way bill or detailed e way bill


What is Bar Code in the generated E way bill?

This is one of the most useful feature for all GST e-way bill user. The feature helps transporter and department officers to scan and verify the authenticity of GST e way bill.

It contains the following details-

The e way bill number, User GSTN number mentioned on the bill, Date and time of creation of the e way bill. This can be used to match with the details printed to verify that there is no manipulation or modification in the printed copy.


How to cancel e-way bill?

Where an e-Way bill has been generated under this Rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill. The e-way bill can be cancelled within 24 hours of its generation. This can be done electronically on the common portal, either directly or through a Facilitation Centre notified by the commissioner.

However, if the e-way has been verified in transit in accordance with the provisions of rule 138B, even before the expiry of 24 hours. Then, an e-way bill cannot be cancelled.


How to cancel e-way bill in case of wrong information?

In case, you have entered the wrong information in e way bill, you also have an option to cancel this e way bill. Let us explain the step-by-step process for the cancellation of e-way bill in such scenario

  • Click on the E-way Bill Option>>>then click on the “Cancel” button on the dashboard.

  • After this click on cancel. Next, enter the e-way bill number and click on the go.

  • Select the reason for cancellation. Like

Duplicate,

Order cancelled,

Data entry mistake,

Others


  • Write the reason for cancellation in detail, if not covered in the predefined option under “Remarks” and click on cancel and your e way bill will be cancelled

Author


Team Tax2Win