The e-way bill is one of the most important compliance requirements under GST for businesses involved in the movement of goods. This comprehensive guide explains the applicability, threshold limit, generation process, and compliance requirements.
What Is an E-Way Bill?
An e-way bill is an electronic document (available to supplier, recipient, and transporter) generated on the common portal evidencing the movement of goods of consignment value more than ₹50,000. It contains the details of the name of the consignor, consignee, transporter, the point of origin of the movement of goods, and its destination.
The e-way bill mechanism facilitates faster movement of goods, improves the turnaround time of trucks, helps the logistics industry to track the movement of goods, and prevents tax leakages. Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees must generate an e-way bill.
Applicability and Threshold
When Is an E-Way Bill Required?
An e-way bill is required when there is movement of goods of consignment value (including GST) exceeding ₹50,000. The movement can be:
- For supply (sale)
- For reasons other than supply (stock transfer, job work)
- Due to inward supply from an unregistered person
Threshold Calculation
The ₹50,000 threshold applies to invoice value, not individual item prices. Moving multiple items totaling ₹55,000 triggers the e-way bill requirement even when each item costs less than ₹50,000. The value of goods carried in the conveyance is more than fifty thousand rupees.
Important: The threshold is ₹50,000 for both inter-state and intra-state movement. However, certain states have set their own limits — for example, Delhi has set ₹1,00,000 instead of ₹50,000.
When E-Way Bill Is NOT Required
An e-way bill is not required in certain situations:
- When goods are being transported by a non-motorised conveyance
- When goods are being transported from customs port, airport, air cargo complex, and land customs station to an inland container depot or container freight station for customs clearance
- Goods transported under customs supervision or under customs seal
- Movement of goods caused by defence formation under the Ministry of Defence
- Transport of certain specified goods
- Transit cargo from or to Nepal or Bhutan
Voluntary Generation
A registered person or transporter may, at their option, generate and carry an e-way bill even if the value of the consignment is less than fifty thousand rupees.
Who Must Generate an E-Way Bill?
An e-way bill may be generated by any of the parties involved in the transaction:
1. Registered Supplier (Consignor): The GST-registered seller creating or causing goods movement typically generates the e-way bill.
2. Recipient (Consignee): If the consignor has not generated the e-way bill, the recipient may generate it.
3. Transporter: Where the e-way bill is not generated and goods are handed over to a transporter, the transporter shall generate the e-way bill on the basis of the information furnished by the registered person in Part A.
Exception: An unregistered transporter may generate an e-way bill after enrolling himself on the e-way bill portal to get a 15-digit unique Transporter ID.
How to Generate an E-Way Bill
Step 1: Furnish Information in Part A
Before commencement of movement, furnish information relating to the goods in Part A of FORM GST INS-01, electronically, on the common portal. Part A comprises details of GSTIN and address of supplier and recipient, place of delivery, description of goods supplied (invoice no., date, etc.), value of goods, HSN code, etc.. This part is to be generated by the registered person causing movement of goods.
Step 2: Furnish Information in Part B
Part B comprises transport details (transporter document number, vehicle details, etc.). The details regarding Part B are to be furnished by the person who is transporting the goods.
Where goods are transported by the consignor or consignee: The said person may generate the e-way bill in FORM GST INS-1 electronically after furnishing information in Part B.
Where goods are handed over to a transporter: The registered person shall furnish information relating to the transporter in Part B, and the e-way bill shall be generated by the transporter.
Step 3: Receive E-Way Bill Number (EBN)
Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) is made available to the supplier, the recipient, and the transporter.
Scenarios Requiring E-Way Bill Generation
1. Business-to-Business Sales: All B2B shipments exceeding ₹50,000 require e-way bills regardless of GST taxability status.
2. Interstate Transfers: Moving goods across state borders above the threshold always mandates e-way bill generation.
3. Intrastate Movement: Most states require e-way bills for within-state shipments over ₹50,000 (check state-specific rules).
4. Stock Transfers: Branch-to-branch or warehouse-to-warehouse transfers exceeding the value threshold need e-way bills.
5. Job Work Movements: Sending raw materials or semi-finished goods for processing requires e-way bills above the threshold.
6. Returns and Replacements: Customer returns or replacement shipments follow the same e-way bill rules based on value.
E-Way Bill Generation for Unregistered Persons
Where movement is caused by an unregistered person either in their own conveyance or a hired one or through a transporter, they or the transporter may, at their option, generate the e-way bill in FORM GST INS-01. Where goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of movement of goods.
Exemptions from E-Way Bill
Goods cleared from customs ports to Inland Container Depots (ICD) do not require e-way bills. The requirement begins when goods move from ICD to the final destination. Certain goods categories receive blanket exemptions through GST notifications.
Validity Period
The validity of an e-way bill depends on the distance travelled:
| Type of Conveyance | Distance | Validity |
|---|---|---|
| Other than Over Dimensional Cargo | Up to 200 km | 1 day |
| Other than Over Dimensional Cargo | Every additional 200 km or part thereof | Additional 1 day |
| Over Dimensional Cargo | Up to 20 km | 1 day |
| Over Dimensional Cargo | Every additional 20 km or part thereof | Additional 1 day |
The validity is counted from the date and time of e-way bill generation. The validity period starts ticking from the moment the e-way bill is generated on the portal.
Consolidated E-Way Bill
Where multiple consignments are intended to be transported in one conveyance, the transporter shall indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal, and a consolidated e-way bill in FORM GST INS-02 shall be generated prior to the movement of goods.
Consequences of Non-Compliance
Transporting goods without a valid e-way bill is one of the most common GST violations. Authorities may detain the goods and conveyances during transit inspections. An e-way bill will be considered invalid without a valid invoice, leading to detention of goods.
The e-way bill is a critical document for the movement of goods under GST. By understanding the applicability, threshold, and generation process, businesses can ensure compliance and avoid detention and penalties.
Need help with e-way bill compliance? Our GST experts provide comprehensive advisory and support.
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