How To Generate E-Way Bills?

On 1 April 2018, the Goods and Services Tax Council mandated the implementation of e-way bills for interstate logistics of goods in every state. An e-way bill is required for the movement of goods in the country, wherein the value of these goods is over Rs. 50,000. The transporter or person in charge of the conveyance must carry this bill as it holds information about the goods, recipient, consignor, and transporter.

Who Should Generate An E-Way Bill?

Movement of goods, called a consignment, comprises three primary parties, including -

Consigner: Sends goods to the consignee.

Consignee: Receives goods from the consigner.

Transporter: Transfers goods from the consignor to consignee. 

Typically, the party that initiates the movement of goods is responsible for generating an e-way bill. The GST regime also allows transporters to generate and manage e-way bills on behalf of the parties at the supplying or receiving end. 

However, in order to generate an e-way bill, an individual should be registered with the E-Way Bill System. Suppliers, receivers and transporters registered under the GST System possess a GST Identification Number (GSTIN) through which they can register themselves with the E-Way Bill System. 

A registered person can choose to generate and carry an e-way bill, even if the value of the consignment is less than Rs. 50,000. 

How Can An Unregistered Person Obtain An E-Way Bill?

The CGST Act terms an individual as an Unregistered Person (URP) if he/she is not registered under this Act. If any transaction involves a URP, the onus of bill generation shifts to the registered party. So, if an unregistered person initiates the supply of goods, its receiver must generate an e-way bill.

However, if neither of these two parties is registered, then one of them can register with the Goods and Services Tax Network (GSTN), or the responsibility of generating the e-way bill is passed on to the transporter. 

In case transporters arecarrying multiple consignments in a single conveyance, they can obtain a consolidated e-way bill on the E-Way Bill Portal. A consolidated e-way bill is a document that contains the details of all the e-way bills in a consignment. 

Documents Required To Generate An E-Way Bill:

A registered person needs to furnish these documents to generate an e-way bill -

  • When a consignment is transported by road - Transport ID or Vehicle number
  • When a consignment is transported by rail, air or ship - Transport ID, Transport document number, and date on the document.
  • Challan/Invoice/Bill of Supply related to the consignment.

When To Generate An E-Way Bill?

The table below summarises who can generate this bill, and when they can do so -

Who 

When

Registered individuals under GST regime

Prior to the goods’ movement 

A consignor is an unregistered person, and the consignee is registered.

Compliance to be carried out by the consignee/recipient.

Either the consignor or the consignee is registered (mode of transport may be own or hired).

Before the goods’ movement.

Registered individuals are the consignor or consignee and goods are given to a transporter.

Before the good’s movement.

Transporter 

Before the goods’ movement.

Format Of An E-Way Bill:

An e-way bill consists of two parts – Part A and Part B. Part A collects invoice details, whereas Part B requires the details pertaining to transportation. 

Mentioned below are the details that an e-way bill captures -

  • GST identification number (gstin) of the recipient
  • Place of delivery
  • Invoice/Challan number
  • HSN code
  • Value of goods in the consignment
  • Reason for transportation
  • Transport document number

Validity Of An E-Way Bill:

The validity of this bill is calculated based on the date and time of its generation, as given below -

Conveyance Type 

Distance Covered

E-Way Bill Validity 

Over Dimensional Cargo (ODC)

Less than 20 Kms

1 day

For every additional 20 Kms

An additional day

Other than ODC

Less than 100 Kms

1 day

For every additional 100 Kms

An additional day

E-Way Bill In Case Of Reverse Movement Of Goods:

Rejection of goods is an inherent and recurrent part of business transactions. Before the GST regime, such goods were allowed to move, using an endorsed copy of the original invoice. The law in force at the moment mandates these goods to be accompanied by an e-way bill as well.

Exemption From E-Way Bill:

Current law exempts some specific goods from e-way bill regulations. This list of goods includes but are not limited to – 

  • Kerosene oil sold under PDS 
  • Petrol, petroleum crude, high-speed diesel, natural gas, or aviation turbine fuel
  • Postal baggage transported by the department of posts
  • Precious or semi-precious stones
  • Alcoholic liquor for human consumption
  • Water (not aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized or sold in a sealed container) 
  • Cereal grains hulled
  • Items of educational importance, such as books, maps, journals and periodicals

E-way bills create a trail of movement across the country and act as a deterrent to tax evasion by businesses. Invoices play a vital role in establishing this network’s efficacy on the ground. Therefore, it becomes crucial for enterprises to maintain proper invoicing so that their logistics run smoothly. In this regard, it is crucial to remember that a company can further leverage its invoices to avail credits.

KredX offers invoice discounting services and grants funds within a short time frame of 24-72* hours. We are a leading integrated cash flow solutions provider in India, facilitating an easy and transparent transaction process for our customers. Our services eliminate extensive documentation and collateral requirements. Business owners can simply visit KredX, upload their invoices, and take a step towards a better future for their businesses.