With the introduction of GST, several new reforms have been introduced by the GST Council and the Central Board of Indirect Taxes and Customs (CBIC) to streamline the taxation process throughout the country. The eWay bill is one of the various rules and regulations introduced under GST to streamline the taxation process throughout the country

eWay Bills have become necessary while transporting goods. But the question that arises is what is eWay bill in GST? How to generate an eWay bill? If you need answers to all these questions, read this article till the end.

Understanding the eWay Bill: A Key Component of GST Compliance

An e Way bill means an electronic document containing details about the shipment. It includes information such as the name of the consignor, consignee, and transporter, the HSN code of the goods, and the quantity and value of the goods. The eWay bill is generated on the GSTN portal, and a unique eWay bill number is assigned to each document.

When Should an eWay Bill be Issued?

An eWay bill under GST should be issued when goods worth more than INR 50,000 are transported within India. The eWay bill needs to be generated for the inter-state and intra-state movement of goods. However, there are some exceptions to this rule

1. Goods transported by non-motorized conveyance are exempted from generating eWay bills.
2. EWay bill is not required for transportation of goods from customs port, airport, air freight center, or land customs to the ground container or container for customs clearance.

Intra-state eWay Bill Rules Across India

For the intra-state movement of goods, each state in India has its own rules for when an eWay bill is required. For example, some states have set the threshold limit for eWay bill generation at INR 1 lakh, while others have set it at INR 50,000. It's essential to check the eWay bill rules for the state where the goods are transported.

Who is Responsible for Generating the eWay Bill?

The following parties are responsible for generating the eWay bill:

1. Buyer or seller (consignor/consignee)
2. Transporter (if not generated by consignor/consignee)
3. E-commerce operator (if handling transportation)

What are the Documents Required to Generate an eWay Bill?

The following documents are required to generate an eWay bill:

• Invoice/Bill of supply/delivery challan
• Transporter ID or vehicle number
• GSTIN of the consignor and consignee
• HSN code of the goods
• Quantity and value of the goods

Generating an eWay Bill: A Step-by-Step Guide

Generating an eWay bill under GST is a simple process. Here are the steps to follow:

• Visit the GSTN portal and log in with your credentials.
• Click on 'Generate New' under 'eWay Bill.'
• Fill in the required details, such as the invoice number, the HSN code of the goods, and the transporter's details.
• Review the information and make sure everything is accurate.
• Click on 'Generate eWay Bill.’

Validity of the eWay Bill

The validity of the eWay bill depends on the distance the goods need to be transported. Here are the validity periods for the eWay bill:

• For transportation distances less than 100 Km: 1 day
• For transportation distances between 100 Km and 3000 Km: 3 days
• For transportation distances greater than 3000 Km: 5 days

It's important to note that the validity of the eWay bill cannot be extended, and a new eWay bill needs to be generated if the validity period expires.

Conclusion

The eWay bill is crucial for businesses transporting goods in India. Understanding its generation, validity, and benefits is essential for compliance and efficient transportation.

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Frequently Asked Questions

1. Is the eWay bill compulsory?

In India, if the worth of the goods being transported across state borders is over Rs. 50,000, it is mandatory to have an eWay bill.

2. Who is exempt from the eWay bill?

The government provides some exceptions and relaxations to this rule. For instance, non-motorized transport and specific exempted goods do not require an eWay bill.