Summary: India’s Goods and Services Tax (GST) framework includes the E-Way Bill system, an electronic mechanism designed to track the movement of goods valued over INR 50,000 to enhance tax compliance. An E-Way Bill, mandatory before commencing transport in cases of supply, non-supply related reasons, or inward supply from unregistered persons, contains crucial details about the consignment. While the standard threshold is INR 50,000, special provisions exist for inter-state movement of job work goods and handicraft items, requiring an E-Way Bill irrespective of value. Registered persons typically generate the bill, though transporters may also do so under specific conditions, and a consolidated bill can cover multiple consignments in one vehicle. The validity of an E-Way Bill is distance-based, renewable under specific circumstances, and it can be cancelled within 24 hours if goods are not transported. The person in charge of the conveyance must carry the E-Way Bill along with the relevant tax invoice or delivery challan. Notably, various exemptions from the E-Way Bill requirement are in place, including transport by non-motorized means, movement of certain exempted goods listed under GST, and specific logistical movements or those by government entities.
E-Way Bill under GST
The E-Way Bill system, introduced under the Goods and Services Tax (GST) framework, is a mechanism for tracking the movement of goods to ensure tax compliance and curb tax evasion. Chapter XVI of the GST rules outlines the detailed requirements and provisions for generating and managing E-Way Bills.
What is an E-Way Bill?
An E-Way Bill is an electronically generated document that must be carried by the person-in-charge of a conveyance carrying goods of value exceeding INR 50,000. It contains details of the supply, such as the supplier, recipient, value & Nature of goods, and route.
When is an E-Way Bill Required?
As per Rule 138(1), an E-Way Bill must be generated before the commencement of movement of goods having value more than INR 50,000 in the following cases:
- In relation to a supply
- For reasons other than supply (e.g., job work, transfer, exhibition).
- Inward supply from an unregistered person
Consignment Value is the taxable value of goods as per Section 15, along with applicable GST and cess, and excludes the value of exempt goods when both exempt and taxable supplies are listed in the same invoice
Special provisions apply for:
- Job workers: When goods are sent inter-state, EWB must be generated irrespective of the Value of the goods.
- Handicraft goods: A person exempt from GST registration must generate an E-Way Bill for inter-state transport, irrespective of value.
Who Generates the E-Way Bill?
- Registered Person: Generates Part A and Part B of Form GST EWB-01.
- Transporter: If goods are handed over to a transporter and Part B details are not filled by the consignor, the transporter generates the E-Way Bill.
- Unregistered Supplier: May opt to generate the bill, or the registered recipient does it if the recipient is known.
Eway Bill in case of Transport Agencies
- If multiple consignments are transported in one vehicle, a Consolidated E-Way Bill (Form GST EWB-02) may be generated.
- If the consignor nor consignee generated the e-way bill of single consignment and the value of total consignments in a single vehicle exceeds ₹50,000, the transporter (except for rail, air, or vessel transport) must generate it for inter-State supply based on the invoice or similar document, and may also create a consolidated e-way bill.
- For e-commerce or courier deliveries, Part A details can be entered by the respective operator or agency
Validity of E-Way Bill
The validity depends on the distance to be covered:
| Distance | Validity Period |
| Up to 200 km | 1 day other than over dimensional cargo and multimodal Shipment |
| Every additional 200 km or part thereof | 1 additional day other than over dimensional cargo and multimodal Shipment |
| Up to 20 km | 1 day incase of over dimensional cargo and multimodal Shipment |
| Every additional 20 km or part thereof | 1 additional day incase of over dimensional cargo and multimodal Shipment |
Modifications and Cancellation
- An E-Way Bill may be cancelled within 24 hours of generation, if goods are not transported because of any reason, provided it has not been verified in transit.
- In exceptional cases, such as trans-shipment, if goods can’t be transported within the e-way bill’s validity, the transporter may extend the validity—within eight hours after expiry—by updating Part B of Form GST EWB-01, if needed.”
Documents Required During Transit (Rule 138A)
The person in charge of a conveyance must carry:
- Tax invoice or bill of supply or delivery challan
- E-Way Bill (either physically or electronically mapped to RFID device)
In some cases, only a delivery challan or bill of entry may be required instead.
Exemptions from E-Way Bill Requirement (Rule 138(14))
E-Way Bill is not required in the following cases:
- Goods transported by non-motorized conveyance
- Supply of good mentioned in Schedule III.
- Movement (up to 20 km) to or from a weighbridge with a delivery challan.
- Movement from port/airport to ICD/CFS
- Movement within notified areas
- Transit to or from Nepal or Bhutan
- Movement by defence or government entities
- Transport of empty containers or LPG cylinders (not for supply)
- For a wide range of goods listed in the Annexure, including:
- Live animals
- Fresh milk, vegetables, and fruits
- Bread, curd, honey (unbranded)
- Printed books, newspapers
- Human blood, contraceptives, hearing aids
- Agricultural implements and puja items
Conclusion
The E-Way Bill system is a critical compliance mechanism under GST. It facilitates smooth transport of goods while ensuring transparency and traceability. Businesses must adhere to the E-Way Bill provisions to avoid penalties and ensure uninterrupted logistics.
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can we take ITC even though no e-way bill generated while transport of good but good received and bill booked. what is provision and law said.
Yes you can take the credit of input. You can connect over call if need more clarification.