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Eway Bills Under GST Tax Regime in India – Importance, and Procedure

The goods and services tax in India has introduced a few changes in goods transportation. With the compulsion of Eway bills, the transportation of goods is tracked by the government. The e-way bills are introduced to avoid the frauds committed during the transportation of goods. According to the rules, any vehicle transporting goods above Rs.50,000/- in value should carry an Eway bill. Without the Eway bill, transportation may attract hefty fines.

For the eligible traders, manufacturers, and service providers, the Waybills are compulsory. If the consignment is legitimate and contains goods above Rs.50,000/-, then the vehicle needs the Eway bill. If you are unaware about the Waybills, then you should know about the same. In this post, we are going to share the information about the Eway bills, the Importance of the same, and the procedure to create an Eway bill.

Eway Bills Under GST Tax Regime in India – Importance, and Procedure


What is an E-way Bill? 

Eway bill or the Electronic Way Bill is the system-generated identification for transportation. The vehicles which are transporting the goods will get the Eway bill from the supplier. According to the GST rules, any vehicle transporting goods worth Rs. Fifty thousand or more should have a valid E-way bill. The rules state that the interstate or intrastate transport should have the waybill generated from the authorized portal. According to the GST Amendment on 24th March 2018, the Waybill generation is made compulsory from 1st April 2018. 

There is an online portal to generate the Eway bill. Once you create the Eway bill with the details of goods, destination, vehicle number, type, and amount of goods, you get the unique waybill number. The Waybill number can be checked online by the authorities for authenticity. Eway bill is nothing but the Electronic Waybill. Due to the introduction of the Eway bill, the physical Waybills are discontinued. 

Eligibility for Generation of Eway Bill

Not everyone can generate an E-way bill. There are specific regulations and eligibility standards for the same. Here are the details about who can create an Eway invoice.

#1 – GST Registered Individual or a Company

Any GST registered individual or a company, which is facilitating the movement of goods, can generate the Eway bill. Be it the consignee or consigner; anyone can create the Eway bill. The bill can be created for personal motor vehicles, private transport, couriers, Railways and Air Cargo transport. Eway bills can be generated by filling the GST EWB 01 form electronically.

#2 – Transporter

When the GST registered individual or a company does not generate the Eway bill and hands over the goods to the transporter, it’s the duty of the carrier to generate the Eway bill. The consignor will furnish the necessary information, and the transporter will generate the invoice. Filling the GST EQB 01 form will create the Eway Bill.  

#3 – Unregistered Individual 

If an unregistered individual is transporting the goods, then it is the responsibility of the registered individual to generate the Eway bill. Unregistered individuals can be a private driver or private transport service. The registered individual has to fill up the GST EWB 01 Form. 

Rules for Eway Bill Generation in GST

There are certain rules applicable to generating an Eway bill. If you satisfy the rules, then you have to generate the E-Way Bill or be exempt from the same. Here are the rules laid down by the government for E-way bill generation. 

  • If the goods are above the Rs.50,000/- in value, then the vehicle should have an Eway bill. 
  • If the goods are part of interstate or intrastate transport with Rs.50,000/- or more value, then it should have an Eway bill. 
  • There is no need to generate an E-way bill if the value of the goods is less than Rs.50,000/-.
  • If the goods are part of Jewellery and Handicrafts, then it should have an Eway bill irrespective of the value. 
  • Eway bill should be generated at the commencement of the transportation or handover of the goods. 

E-way Bill Generation Procedure

To generate the Eway bill, you should be a GST registered individual. Also, you should have registered on the Eway bill generation platform. Once you are registered, you can log in and start with the Eway bill generation. You can choose from all of the available forms. Fill up the details and generate Eway bill Identification Number. Also, you can check the history of bills generation. If you’ve entered the wrong details, then you can edit the same on the Eway bill generation portal. If you are not registered under the GST regime, then it is the right time to get it done. With the professional help from Efiling.co.in experts, you can get GSTIN within a few days. 

Frequently Asked Questions  on Eway Bills in GST: FAQ

#Q1 – What is E-way Bill in GST? 

Eway Bill is nothing but the Electronic Waybill. It is provided to the goods transporting vehicle for tracking. Any transporting vehicle which is carrying goods worth Rs.50,000/- or more should have Eway bill number. 

#Q2 – Why Eway Bill is required? 

The Eway bill is used to monitor the movement of goods inside the state. Also, it is used to monitor the movement outside the state. It is useful to avoid transportation fraud and tax evasion.  

#Q3 – Is Eway Bill mandatory for Goods worth less than Rs.50,000?

It is not necessary to have an Eway bill for transportation of goods worth less than Rs.50,000/-. Although, if the goods are related to the Jewellery and Handicrafts, then the vehicles should have an Eway bill number irrespective of the Worth of the goods. 

#Q4 – What happens if the EWAY bill is not generated?

If the authorities find you transporting the goods without the Eway bill, then you’ll be liable for hefty fines. Also, the vehicle transporting the goods will be seized immediately. 

#q5 – What is the validity period of the Eway bill?

For the transport radius of 100Km, the Eway bill is valid for 24 hours. For each 100km of distance, 24 hours are added to the validity. If the vehicle does not travel more than 100Km in 24 hours, then it requires a fresh waybill. 

Professional GSTIN Registration Services from Efiling.co.in for Eway Bill Generation

The generation of Eway bills is an important part of goods transportation. If you are a service provider, then you’ll get the relaxation. Although, if you provide the transportation services, then you may require to generate the Eway bill. The government is keeping a keen eye on the transportation of goods to check for illegal transport. That’s why it is important to get the Eway bill for inward or outward supply of goods. If you do not have the GSTIN for your business, then you should immediately get one. With the help from the GST professionals at Efiling.co.in, you can get GSTIN within a few days. Provide the necessary details, pay the fees, and get your GSTIN with expert help from Efiling.co.in.