Since February 2018, the Government of India has been rolling out the eway bill (Electronic Way Bill) system under GST. E way bills were earlier used under VAT in most states in the name of way bill, road permit, etc. The eway bill is mandatory for any GST registered person to transport goods that are worth over ₹50,000. Basically, an e way bill is necessary to accompany goods transferred from the consignor to the consignee. Generating a new e way bill and cancellation of the same can be done on the app or via SMS. Every eway bill has a unique 12-digit ENB (e way bill number). The supplier, receiver, and the transporter will receive this 12-digit number.
When to Generate an Eway Bill?
An eway bill has to be generated before goods are transported from one location to another. A registered person, an unregistered person, and a transporter can generate an e way bill. An eway bill is generated in the following scenarios.
- Supply of goods without consideration
- Supply of goods with consideration
- Inward supply that is received from an unregistered person.
When it comes to supply, the movement of goods on account of sales and other reasons including purchase from an unregistered person, barter exchange, and inter branch transfers are included. The recipient of the goods should ensure the generation of an e way bill if the goods are supplied from an unregistered person to a registered person.
When is an Eway Bill Not Necessary?
According to Rule 138 of CGST rules, you will not require an e way bill in the following cases.
- Empty cargo containers
- Unoccupied cargo containers
- Transit to Bhutan and Nepal
- Non-motorised transportation
- Custom transit
- Using delivery challan
- Transportation by rail service
- Under custom supervision
- Transportation in custom bonds.
- Exempted goods
How to Generate an Eway Bill?
Generating an e way bill is simple and can be done through two ways. You can either generate an eway bill on the website or through SMS. Let us have a look at how you can do both.
Website
You can generate an e way bill through the website by following these 6 steps.
Step 1: Go to the e-way bill portal and use your details to log in.
Step 2: On the eway bill menu, click on the “Generate New” option. This will create a new e way bill.
Step 3: Once the new EWB bill generation form appears, fill in your name, GSTIN, and state details. If you are the recipient, select “Inward” and select the “Outward” option if you are the supplier.
Step 4: Fill in the product description, HSN code, quantity and unit of goods, value of the products, IGST and CGST rates, approximate distance, transporter name and ID. Once you fill in these details, your eway bill will be generated.
SMS
Follow these 5 steps to generate your e way bill through SMS.
Step 1: Login to the e-way bill portal and click on “Registration”.
Step 2: Enter your registered mobile number and enter the OTP to authenticate your login.
Step 3: Click on “Exit” to see the user IDs displayed.
Step 4: Then, select the User ID and click on “Submit” to generate your eway bill.
Final Thoughts
Eway bills are necessary for transportation of goods but are exempted in certain scenarios. You can know more about how to generate e way bills on Finserv MARKETS. You can also avail of business loans on Finserv MARKETS with several benefits such as minimal documentation and quick disbursal.