An E-way bill is an electronic document generated on the e-way bill portal (ewaybillgst.gov.in), which serves as proof of the movement of goods. It acts as a digital compliance tool under the GST framework, where the consignor or seller inputs relevant information about the goods before they are transported and generates an e-way bill on the GST portal.

The E-way bill includes important details such as:

• Name of the consignor
• Name of the consignee
• Origin of the consignment
• Destination
• Proposed route

According to GST regulations, any person registered under GST who initiates the transportation of goods with a consignment value exceeding Rs. 50,000 must provide details of these goods in an E-way bill before the goods begin their journey.

The requirement for an e-way bill is mandated under Section 68 of the CGST Act and further detailed in Rule 138 of the CGST Rules, 2017.

The requirement to use an e-way bill for interstate supplies came into effect on April 1, 2018. It was extended to intrastate supplies in certain states (Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, and Puducherry) starting April 25, 2018.

Key Components of eWay Bill

The e-way bill, crucial for the movement of goods in India, consists of Part A and Part B.

Part A of the e-way bill

Part A of the e-way bill involves gathering vital information about the consignment, primarily related to the invoice. The details required in Part A include:

• GSTIN of the recipient, i.e., the person to whom the goods are supplied.
• Pin code of the delivery location.
• Invoice or challan number linked to the goods’ supply.
• Value of the consignment, indicating the monetary worth of the transported goods.
• HSN code of the goods. Businesses with a turnover of Rs. 5 crores should mention the first two digits of the HSN code, while those with a turnover above Rs. 5 crores need to provide a four-digit HSN code.
• Reason for transportation, chosen from a list of predefined options.
• Transport document number, which could be the goods receipt number, airway bill number, railway receipt number, etc.

Part B of the e-way bill

Part B of the e-way bill captures the transportation specifics. This includes the vehicle number for road transport or other conveyance details via rail, air, or ship. Part A and B are required to constitute a complete e-way bill, which is obligatory for transporting goods exceeding Rs. 50,000 in value, within or across state lines, under the GST framework.

When is an e-way bill generated?

An e-way bill is required to be generated before the dispatch of goods. It must encompass key details about the goods, including information about the consignor, recipient, and transporter.

The scenarios necessitating an e-way bill include:

• For Supply of Goods: Whenever goods are supplied, an e-way bill is essential.
• For Non-Supply Transactions: This category includes various situations such as:
• Export/import of goods.
• Returning goods.
• Sending goods for job work.
• Line sales.
• Sales on an approval basis.
• Supply of semi or completely knocked-down items.
• Goods supplied for exhibitions or fairs.
• Goods used for personal consumption.
• In all these cases, generating an e-way bill ensures compliance with the necessary transport and tax regulations.