E-Way Bills: A Comprehensive Overview

The e-way bill system was introduced by the government on April 1, 2018, under the Goods and Services Tax (GST) regime. Before this system, the transportation of goods was regulated by a system of:

• Physical waybills
• State permits
• Statutory forms (like Form C and Form F)

These documents were required for the movement of goods across state borders and within states. Goods carriers were required to stop at various checkposts for manual verification of these documents. This often resulted in delays and increased transit times.

Furthermore, each state had its own set of rules and forms. This increased complexity for businesses operating in multiple states. Taking cognizance of all these challenges, the e-way bill system was introduced

This system significantly reduced paperwork and transit delays. Also, it allowed for real-time tracking of goods (through RFID tags) which benefitted all the associated stakeholders, like sellers, recipients, banks, NBFCs, and government authorities.

Wish to learn more? In this article, let’s gain a complete overview of the e-way bill system.

What is an e-way bill

An e-way bill is a digital document. As per Section 60 of the GST Act, an e-way bill must be generated if the value of transported goods exceeds Rs. 50,000. Generated online, it is valid for a specific period based on distance.

An e-way bill (of the prescribed EWB01 format) includes the following details:

• Names of the consignor (sender)
• Name of the consignee (receiver)
• GSTIN of both these parties
• Invoice number
• Description and value of goods
• Vehicle number
• Transporter details

The above information is usually divided into the two parts of an e-way bill:

• Part A: Contains details about the transported goods
• Part B: Includes transporter details

Who needs to generate e-way bills

Any business or individual registered under GST must generate an e-way bill when transporting goods over Rs. 50,000 in value. This applies whether they are sending or receiving the goods.

However, there are if a registered supplier or recipient does not create an eway bill, the transporter carrying the goods must generate it. This applies to road transport or when goods are handed over to a third-party transporter.

When is an e-way bill needed

An e-way bill must be generated before transporting the goods. Let’s check out when it is required:

Outward supply

If you are supplying goods, as a registered GST individual or business, you need to create the eway bill before the goods are transported.

Return of goods

If you are returning goods to the supplier, you must generate the e-way bill for the return movement.

Goods from unregistered suppliers

When you receive goods from someone not registered under GST, you, as the recipient, are responsible for generating the e-way bill.

Also read: Streamlining Financial Workflows for a Smoother Business Operation

How are e-way bills generated

The generation of an eway bill is a 100% digital process carried out on the official EWB portal  www.ewaybillgst.gov.in. Let’s understand in easy steps, how you can generate it:

Step 1: Log in to the e-way bill portal

• Visit the official e-way bill portal – ewaybillgst.gov.in
• Click on the Login button.
• Enter your User ID and Password.
• Then complete the CAPTCHA verification to proceed.

Step 2: Select the e-way bill option

• After logging in, navigate to the e-way bill section.
• Click on ‘Generate New’ to start creating a new e-way bill.

Step 3: Fill in important details

Now, a form will appear where you need to enter various details:

• Transaction type: Select whether it is an outward supply (if you are the supplier) or an inward supply (if you are the recipient).
• Document type: Choose from options like:
  • Invoice
  • Bill of supply
  • Delivery challan
• Document number and date: Enter the relevant invoice number and date.
• GSTIN Details: Input the GSTIN of both the supplier and recipient. Here the system will auto-fetch details upon providing valid GSTINs.
• Value of goods: Specify the total value of goods being transported.
• Transporter details: Include information about the transporter, such as their GSTIN and vehicle number.

Step 4: Generate the e-way bill

• Once all required fields are filled out accurately, click on the ‘Submit’ button.
• If all details are correct, a unique e-way bill number (EBN) will be generated along with a QR code.

Step 5: Print or save the e-way bill

• The generated e-way bill can be printed or saved digitally.
• As per the GST rules, it is necessary to carry this document during the transportation of goods.

Note: You can also generate e-way bills using other methods such as SMS or through integration via API. The latter is a preferred method for businesses active on online marketplaces with higher volumes of transactions.

Conclusion

The e-way bill system has completely transformed the way goods are transported in India. By replacing physical documents with a digital process, it has reduced paperwork and transit delays.

Also, it allows for real-time tracking of goods which ensures strict compliance with the GST rules. The current process of generating an e-way bill is 100% digital. Following some simple steps, it can be easily generated on the official EWB portal.