The E-way Bill is an integral part of India's Goods and Services Tax (GST) framework. It is an electronically generated document mandatory for moving goods exceeding ₹50,000 in value. Introduced to enhance transparency and accountability, the E-way Bill system aims to simplify logistics, prevent tax evasion, and ensure seamless compliance with GST regulations.
This guide provides an in-depth understanding of the E-way Bill system, its key components, benefits, ways to generate GST e-way bills on the E-Way bill portal & more. Read on to know more!
From January 1, 2025, the GST Network (GSTN) has implemented significant updates to the E-Way Bill and E-Invoice systems to enhance security and compliance. Key changes include the mandatory implementation of Multi-Factor Authentication (MFA) for taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹20 Crores and restrictions on E-Way Bill generation for documents older than 180 days.
Table of Contents:
The GST Network (GSTN) has announced key updates to the E-Way Bill and E-Invoice systems, effective from 1st January 2025, aimed at improving security and compliance. Here are the highlights:
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An E-way Bill (Electronic Way Bill) is a digital document generated on the E-way Bill portal for tracking the transportation of goods. It is required under GST laws for the movement of goods, whether inter-state or intra-state. The document contains information about the consignment, such as the supplier, recipient, and transporter details.
The primary purpose of the E-way Bill is to:
The E-way Bill system plays a critical role in ensuring the smooth implementation of GST. Its importance includes:
The table below outlines the situations where an E-way Bill must be generated, along with specific conditions and exceptions:
Scenario | Description |
---|---|
Movement of Goods Over ₹50,000 | Mandatory for goods valued above ₹50,000, either per invoice or in aggregate in a single vehicle. |
Supply of Goods |
|
Non-Supply Reasons |
|
Inward Supplies from Unregistered Persons | When goods are received from an unregistered supplier. |
Inter-State Job Work | Movement of goods by the principal or a registered job worker, even if the value is below ₹50,000. |
Handicraft Goods | Inter-State transport by GST-exempt dealers, regardless of the consignment value. |
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The E-way Bill comprises several key components that facilitate compliance and accountability. Below is a detailed table:
Component | Description |
---|---|
E-Way Bill Number (EBN) | A unique 12-digit number is generated upon the creation of the bill. |
Supplier Details | Name, GSTIN, and address of the supplier initiating the movement. |
Recipient Details | Name, GSTIN, and delivery address of the recipient. |
Goods Details | Description, quantity, value, HSN code, and tax rates of the goods. |
Transporter Details | Transporter's ID, vehicle number, and mode of transportation. |
Validity Period | The duration for which the E-way Bill remains valid. |
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E-way Bill regulations vary across states, with specific thresholds, exemptions, and additional conditions for the movement of goods. Below is a breakdown of the key requirements to ensure compliance with GST norms.
Thresholds for Goods Movement:
Exemptions:
Special Conditions:
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Generating an E-way Bill is essential for the transportation of goods under GST regulations. The process can be completed through several methods, depending on the convenience and technological setup of the business.
Here's an overview of the primary ways to generate and manage E-way Bills:
The E-way Bill portal allows users to generate, download, and print E-way Bills seamlessly.
Prerequisites:
Steps to Generate E-Way Bill Online
For businesses or individuals operating in areas with limited internet connectivity, the SMS facility provides a quick alternative.
Steps:
For businesses using e-Invoicing:
For businesses with high transaction volumes, API integration is the most efficient option.
How it Works:
The GST Eway Bill Calculator helps businesses easily calculate and manage the GST and Eway Bill requirements for goods in transit. Calculate the GST quickly using the online GST calculator provided below:
Total GST | : ₹180 |
Post GST Amount | : ₹1,180 |
Besides, GST calculation you can also calculate the Pincode to Pincode distance calculator as provided on the official website.
After generating the E-way Bill, businesses must ensure it is carried out during the transportation of goods. Here's how you can download and print it:
Download the E-way Bill:
Print the E-way Bill:
Note: The E-way Bill must be generated before the commencement of goods movement. It is the responsibility of the supplier, recipient, or transporter, depending on the situation. Failure to generate an E-way Bill before movement can result in penalties or seizure of goods.
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Below is a breakdown of who is eligible and obligated to generate the E-way Bill.
Certain exemptions apply where E-way Bills are not mandatory, including:
The validity of an E-way Bill is based on the distance the goods need to travel:
If goods cannot reach their destination within the specified period, businesses can extend the validity of the portal before the expiry of the bill.
Non-compliance with the E-way Bill regulations can lead to significant penalties and legal consequences. The GST framework enforces strict measures to ensure adherence, emphasizing the importance of generating and carrying a valid E-way Bill during goods transportation. Below are the detailed penalties and consequences for failing to comply with E-way Bill requirements:
Failure to generate or carry a valid E-way Bill results in a penalty, which is the higher of:
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The E-way Bill ensures transparency, tracks the movement of goods, prevents tax evasion, and simplifies logistics under the GST framework.
It is mandatory for suppliers, recipients, and transporters involved in the movement of goods worth over ₹50,000.
An invoice is a document detailing the sale of goods or services, while an E-way Bill is a GST-mandated document for tracking the movement of goods.
The E-way Bill is required for goods valued over ₹50,000 in a single consignment.
Generally, the supplier or transporter generates and bears the cost of the E-way Bill.
It is used to track goods during transit, ensure GST compliance, and facilitate smooth logistics.
Recent updates focus on stricter penalties for non-compliance and integration with the FASTag system for real-time vehicle tracking.
No, a Waybill is a transportation document, while a receipt is proof of payment for goods or services.
Generate it through the GST E-way Bill portal, SMS, mobile app, API, or via GST Suvidha Providers (GSPs).
The supplier, recipient, or transporter can issue the Waybill depending on the circumstances.
Waybill stands for a document listing the details of goods being transported.
For goods worth over ₹50,000, an E-way Bill is mandatory under GST.
No, you cannot edit an E-way Bill once it is generated. However, certain fields like vehicle details can be updated.
The recipient can reject the E-way Bill if they do not agree with the details provided. Rejection must be done within 72 hours.
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