Meaning

The E Way Bill, also known as the Electronic Way Bill, is a term that arose from the Goods and Service Tax regime. While it was present at the time of the Value Added Tax, it was also used to monitor the movement of goods between states. It is essentially an electronically produced paper or bill that contains the basic information of a consignment of goods that is being shipped within a specific geographic area.

Components of E way Bill

E way Bill is generated in Form GST EWB - 01 which has following two Parts:

Who generates E way Bill

The responsibility to generate E way Bill lies with registered person who is causing movement of goods. It can be generated by Consignor, Consignee or the Transporter. 

1.When  Consignor or Consignee is a Registered person under the GST Act, they have to generate E way bill  when they cause movement of goods or consignment by way of their own or hired vehicle or by Public Conveyance such as Railways, Vessel or by Air. They have to fill Part A of Form GST EWB - 01 on the common Portal (https://ewaybillgst.gov.in/). However they can also authorize Transporter to fill Part A of the Form on their behalf.

2. Part B of the Form shall also be filled by the Registered Consignor or Consignee. In case they do not fill the details in Part B it has to be filled by the Transporter but In case transportation of goods is done by Railways or by Air or Vessel, then the Registered Consignor or Consignee shall fill Part B of the Form and the goods shall be delivered only when E way Bill is produced by the Consignee.

3.If Consignor or Consignee does not generate E way bill then Transporter can also generate it by filling Part B of the Form on the basis of information provided by Consignor or Consignee in Part A of the Form.

4.When goods or consignment is transported by unregistered person, the E way ill shall be generated by the recipient but the Transporter may also generate the e way Bill at his option.

Case of Multiple Consignments

When a transporter carries multiple consignments for different consignor and consignees having  with different consignment values, E way Bill need to be generated only for the consignments whose individual values exceed Rs. 50,000 and if there are none then it is not required. Also the Transporter can generate a consolidated E way bill in which E way Bill numbers of single consignments will have to be entered in Form GST EWB-02. In case goods of same consignor and consignee is transported with with different invoices, a separate E way Bill shall be generated for all the invoices.

Validity of E way Bill

When E way Bill is not required to be generated

1. When the value of goods or consignment is less than Rs. 50,000.
2. When goods are transported within a distance of 50 Km from consignor’s place of business to Transporter’s place of business in the same state or Union Territory for the purpose of further transportation of goods.
3. When goods are transported in a non motorized conveyance like horse cart.
4. When transportation of goods or consignment takes place in notified area.
5. When goods are transported to or from Nepal or Bhutan.
6. When goods are transported within 20 Km to  weigh bridge and then back.
7. When goods are transported by Ministry of Defense or to them.
8. Goods transported by Government or local Authorities by way of Railways.
9. Movement of empty cylinders for filling Liquefied Petroleum gas and not for supply.
10. For movement of goods specified in Annexure of Rule 138 of Central Goods and Service Tax Act.

Generation of E way Bill even if Value of goods is less than Rs. 50,000

In the following cases E way bill shall be generated even if the value of goods being transported is less than Rs. 50,000:

1. Supply of goods from principal to job worker from one state to another state.
2. When handicrafts are supplied by a supplier from one state to another who is exempted to be registered under the GST Act.

Importance of E way Bill

1. Proper accounting, recording of transportation of goods shall lead to an efficiency in the logistics industry by keeping a check on their travel time and costs associated therewith. Also the goods shall be delivered on time.
2. From the point of view of Government, it reduces corruption since it is a centralized mechanism and less paperwork is involved. This may result in an increase in collection of GST.
3. It provides a uniform compliance structure for all the states bringing a consistency in GST law.
4. Not generating E way Bill may be assumed as registered person is trying to evade tax and may therefore attract penalties.
5. Even the goods are liable to be confiscated if transported without a valid E way Bill.

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