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An e-way bill is an electronic document that is required for the movement of goods worth more than INR 50,000 within India. The e-way bill system, which was introduced by the Indian government in 2018, is designed to help businesses comply with the country's tax laws and streamline the transportation of goods. In this blog, we will discuss what is e-way bill system, how it works, and the benefits it provides for businesses and the government. We will also cover the various ways in which e-way bills can be generated, and provide tips and best practices for businesses to ensure compliance with the system.
An E-Way bill or an Electronic-Way Bill, is an electronically issued document that permits the movement of goods and is used to track consignments in transit. As per Indian regulations, a GST-registered person cannot transport goods within or outside of the state if the value of such goods exceeds Rs. 50,000 without a duly generated e-way bill.
The document allows all parties, including the receiver, sender, and transporter, to track the status of the consignment with the help of an E-Way Bill Number (EBN) allocated to them during the generation of the e-way bill.
An e-way bill registration is usually done whenever there is a movement of goods valued at higher than INR 50,000. This transaction could be related to supply, inward supply, and other related reasons, such as the return of the consignment.
However, the regulations of India do define that the term 'supply' shall fall into the following three categories:
Also, it is important to note that if transportation of a handicraft goods consignment is taking place inter-state by a dealer exempted from GST, then you must generate an e-way bill even if the value of the goods does not exceed the INR 50,000 mark.
One can also avoid filling part-B of the e-way bill requirement wherein the distance that has to be covered by the consignment is less than 50 kms, and the transaction is taking place inter-city.
Generating an e-way bill is a liability on the part of the parties involved in such a transaction where the consignment value crosses Rs. 50,000. However, the primary responsibility of doing so is of the person supplying such goods, i.e., the consignor.
One of the core benefits of the e-way bill is to enable effective implementation of GST laws in the country. It also intends to simplify tracking of movement of goods, while holding those liable for trying to evade tax liabilities.
In cases where the consignor is not GST registered, the responsibility of e-way bill falls on the receiver, also known as the consignee. If both parties fail to raise the bill, the duty to generate the e-way bill is of the transporter carrying them.