Are you involved in transporting goods to different parts of India? eWay bill is a mandatory document the transporter must carry during transit. There are the rules and details about this essential document.
Technology and digitisation have changed the processes of almost every business segment in India. Those engaged in the goods transportation business have seen several reforms in this sector, especially in billing and taxation. Even availing of Business Loan has become easier with interest rate calculators online.
In 2017, the introduction of GST (Goods and Services Tax) was a significant step taken by the government of India related to indirect tax reforms in India. Moreover, the government abolished check posts in the country for easy and quick movement of goods across India.
Simultaneously, the GST system also provides provision for the eWay Bill, a document that the person in charge of conveyance must carry. It is an electronically-generated document from a common portal developed by the National Informatics Centre of the Goods and Services Tax Council.
Here is everything you need to know about the eWay bill meaning, its benefits, rules, and generation process.
What is an eWay Bill?
Before understanding the eWay bill meaning, you must know that an eWay bill stands for Electronic Way Bill. It is a document that helps track goods in transit under GST. Notably, those involved in goods interstate or intra-state transportation activities registered under GST must possess an eWay bill if the value of goods exceeds Rs 50,000.
It contains important details regarding the goods, recipient, transporter, and consignor. It is mandatory for all interstate goods transportation and intra-state transportation in certain states like Puducherry, Arunachal Pradesh, Sikkim, Meghalaya, and Madhya Pradesh.
Who Should Generate an eWay Bill?
Now that you know what the eWay bill means, you will need clarification on who should generate it. Well, you must generate it if you are any of the following:
Registered Person
Generating an eWay Bill is necessary when a registered person moves goods worth more than Rs 50,000 to or from their facility. They can be the consignor, recipient, or consignee handling goods through hired or their own transport via air, rail, or road. A registered person can also generate an eWay bill if the valuation is less than that threshold.
Unregistered Person
An unregistered person should also generate an eWay bill if they supply goods to a registered person. Since the supplier is unregistered, the registered recipient must comply with all regulations related to the transportation of goods.
Also, Check: What is Bill or Invoice Discounting
Transporter
If the consignors or consignees do not generate an eWay bill, the transporter can generate it to carry goods via rail, air, or road. The consignor can authorise the e-commerce operator, courier agency, or transporter to fill the eWay bill’s Part-A on their behalf.
Cases When eWay Bill is Not Required
Although an eWay bill is necessary for both registered and unregistered consignors and consignees for goods of different values, it is not mandatory in the following cases:
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If the consignment value is less than Rs 50,000.
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If the shipped goods are GST exempted.
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If the shipment contains both taxable and exempt goods, the consignment value will exclude the value of exempt ones.
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If the mode of transportation is a non-motorised conveyance like railways, it will not require an eWay, but a challan or invoice will be necessary to carry during transport.
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If the goods are going from an airport, port, land customs station, or air cargo complex to a container freight station or inland container depot for clearance.
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If the good transportation is specified in Annexure to Rule 138(14) of the CGST Rules, 2017.
Benefits of eWay Bill
The following are the benefits of eWay bill:
Reduced Documentation:
The movement of goods does not require state-wise documentation.
No Need to Carry Papers:
With an RFID device installed in their vehicle, transporters do not need to carry any physical copies, as they can map them through the device. It avoids the hassle of carrying paperwork and keeps it safe during transportation.
Cost Reduction:
eWay bill reduces the logistics cost by reducing tax and avoiding paper invoicing. The logistics costs also come down compared to GDP.
Fast and Efficient Transportation:
The system reduces the number of check posts across highways and state borders, making the transportation system more efficient and faster.
Fast and Simple eWay Bill Generation:
Parties can generate eWay bills through a simple, quick, and user-friendly government portal.
eWay Bill Rules and Limits
After understanding what is eWay bill, it is also essential to know these eWay bill rules and limits:
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The eWay bill should contain the vehicle number with the transporter ID.
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If the transporter changes vehicle during the transit, they must update the conveyance details through the GST portal.
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An eWay bill is valid across all Indian states and Union Territories.
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If multiple vehicles are involved in the delivery, the supplier must issue an invoice before the first assignment’s completion and more for each consignment afterward.
Validity of eWay Bill
The validity of an eWay bill depends on the distance for which the goods are to be transported. It starts from the date of the eWay bill generation and ends for a period calculated based on the following parameters:
| Distance | Validity Period |
|---|
| Up to 100 km | One Day |
| For every additional 100 km | One More Day |
If the goods do not reach their destination within the eWay bill validity period, the transporter can update the details and extend its validity in Part B. However, they must apply for an extension before or within four hours of the bill’s expiry.
Documents or Details Required to Generate eWay Bill
These are the documents a person in charge of goods transportation must carry:
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Delivery challan, invoice, or bill of supply
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Transporter ID for goods transportation by road
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Transporter ID, date of transportation, and transport document number for transportation by rail, air, or ship
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Copy of the e-Way bill or EBN (eWay Bill Number) in physical form or mapped to an RFID (Radio Frequency Identification Device)
Conclusion
eWay bill has been a major contributor to the dilution of interstate boundaries in India. Now that you understand what eWay bill is, you can use this facility to expand your business across the country. However, for that, you might need extra funding in the form of Business Loans. We at Hero FinCorp provide the best Business Loans with attractive interest rates and flexible repayment terms without collateral. Don’t forget to calculate the Business Loan interest rate using EMI calculators available on our website for free.
FAQs
An eWay bill is applicable whenever a consignor delivers goods worth more than Rs 50,000 to a consignee through rail, road, or air.
While a GST bill is a detailed report of all outward supplies, an eWay bill is a subset of a GST bill with details of supplies only when a movement of goods is involved above a threshold limit.
Transportation of goods for a distance of less than 50 km needs an eWay bill with details in the Part-A slip only.
