The E-Way Bill system under the Goods and Services Tax (GST) framework is designed to ensure the smooth movement of goods across India. It serves as an electronic pass for the transportation of goods worth more than a specified threshold value. The system aims to curb tax evasion by documenting the transfer of goods and facilitating the tracking of their movement.
The E-Way Bill is mandatory for both inter-state and intra-state movement of goods for consignments valued over INR 50,000. This threshold includes the value of the goods plus any taxes. However, individual states have the discretion to set different thresholds for intra-state movements.
An E-Way Bill must be generated before the commencement of the transportation of goods in the following situations:
To generate an E-Way Bill, the following information is necessary:
The validity of an E-Way Bill depends on the distance the goods are to be transported:
The validity can be extended under certain circumstances, such as delay due to unforeseen factors. The extension must be applied for before the current validity expires.
Each party in the supply chain has specific responsibilities regarding the E-Way Bill:
Failure to comply with E-Way Bill rules can lead to the detention, seizure of goods, and imposition of penalties.
Certain goods and transactions are exempt from the E-Way Bill requirements, such as:
Special rules apply to the transportation of goods under customs supervision or seal, transit cargo from or to Nepal or Bhutan, and movement of goods caused by defense formation under Ministry of Defense as a consignor or consignee.
Businesses and transporters need to register on the E-Way Bill portal to generate, manage, and cancel E-Way Bills. The registration process involves providing GSTIN and other business details.
The portal offers features for the bulk generation of E-Way Bills, beneficial for businesses handling large volumes of goods. This feature simplifies the management and generation process, saving time and reducing errors.
A compliance checklist includes generating E-Way Bills where applicable, ensuring the accuracy of information provided, and maintaining records of E-Way Bills generated, extended, or canceled.
Violations of E-Way Bill rules can result in penalties, including a fine of INR 10,000 or an amount equivalent to the tax evaded, whichever is higher.
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