Concept of E-Way Bill

In this article we are going to discuss What is E-Way Bill, When it is required to be issued, Who can issue it, and when it is not required to be issued.

What is E-Way Bill?

E-Way bill refers to the Electronic way Bill. It is a document required to be carried by the transporters while moving goods of value exceeding fifty thousand rupees from one place to another. The E-way Bill can be generated on the E-way Bill portal by the registered person or the transporter. On generation of E-way bill, a unique E-Way Bill number (EBN) is generated which is available to the supplier, recipient and the transporter.

When is E-Way Bill required to be issued?

E-way bill is to be issued when the value of goods to be transported is more than Rs. 50,000. E-way bill will be issued in case of supply of goods, the return of goods or when receiving supplies from unregistered persons.

Related to a ‘supply’
Reasons other than a ‘supply’ ( say a return)
Inward ‘supply’ from an unregistered person

For certain specified Goods, the E-Way bill needs to be generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000

When there is Inter-State movement of Goods to the Job-worker
In case of Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

E Way Bill is required for Inter as well as Intra State however, For Intra State Movement value for E Way Bill may Vary State by State. For example- In Delhi the limit for E-Way bill for Intra State Movement is Rs. 1,00,000.

Who can issue an E-Way Bill?

The E-Way Bill can be issued by registered supplier/receiver, unregistered person or a transporter , if both the supplier and the receiver are not registered.

Registered Supplier/ Receiver – It is necessary to generate E-way Bill when there is a movement of goods of more than Rs 50,000 in value. For A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.

Unregistered Persons – The generation of e-Way Bill is required when supply is made by an unregistered person to a registered person, in such a condition the receiver will have to ensure all the compliance are met.

Transporter – The Transporters who are carrying goods by road, air, rail, etc. also need to generate e-Way Bill in case the supplier has not generated an e-Way Bill.

When is E-Way Bill not required?

There are many situations under which an E-way Bill is not required.

Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
Goods transported under Customs supervision or under customs seal
Transit cargo transported to or from Nepal or Bhutan
The mode of transport is non-motor vehicle
Empty Cargo containers are being transported
Movement of goods caused by defense formation under Ministry of defense as a consignor or consignee
Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
If Goods are transported to a weighbridge within 20kms and back to the place of business by being covered under a Delivery Challan
Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications.
Goods specified as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.