What Are the GST Rules For E-Way Bills?

What Are the GST Rules For E-Way Bills?

21 April, 2023

As a carrier, you need to issue a waybill to transport goods from one place to another. It is a document that provides details of the consignor, the origin point, the transporter, the consignee and the destination. The Central Board of Indirect Taxes & Customs requires that you upload these details to the Goods and Services Tax (GST) portal and generate an electronic waybill or e-way bill. All information about the e-way bill system and its GST rule compliance are available below.

What is an e-way bill?

An e-way bill is a legally required document to move the consignment to its destination. It is a compliance mechanism wherein you upload all relevant information about the shipment to the official GST portal before shipping it.

Per Rule 138 of the CGST Rules, 2017, if you are a registered carrier and are shipping goods of value more than ₹50,000, you are required to generate an e-way bill. E-way bill ensures that the transported goods are GST-compliant. It allows relevant authorities to track tax evasion.

E-way bill format

The e-way bill generated comes with an e-way bill number (EBN), the bill generation date and your GST number made available to the consignor, the transporter and the consignee. The next part of the e-way bill consists of two parts:

  • Part A of form GST EWB-01

    This part of the bill contains the GST details of the recipient:

    • GST details of the consignee

    • Invoice or challan number and date

    • Pin code of the delivery place

    • Reason for transportation

    • Value of the goods

    • Harmonised system of nomenclature (HSN) code

    • Transport document number (goods receipt number/railway receipt number/airway bill number/bill of lading number)

  • Part B of form GST EWB-01

    This part of the e-way bill comprises the vehicle number.

Where can you generate the e-way bill?

You need to generate the e-way bill on the GST electronic portal. However, note that this portal is different from the GST common portal used to file GST returns. All carriers registered under GST are required to register separately on the GST electronic portal for e-way bill generation.

You must provide your business’s GST Identification Number (GSTIN) on the e-way GST portal. You will receive a one-time password on your mobile number registered with the GST common portal. After the e-way GST portal authenticates the OTP, you can create a username and password for the e-way bill portal.

Transporters who do not possess a GSTIN must enrol themselves on the e-way bill portal. They receive a 15-digit Unique Transporter ID.

Who generates the e-way bill?

The entity that sends or receives the shipment via their own vehicle, hired conveyance, railway, air or water is required to generate the e-way bill.

If you outsource a transportation company to transport the goods, the transportation company generates the e-way bill. However, the transporter can only update Part B of the e-way bill. The registered person must furnish the relevant details for Part A. The transport can update Part A of the e-way bill upon prior authorisation from the consignee or consignor.

The transporter may not furnish the conveyance details in Part B if the distance between the consignor and the transporter is at most 50 kilometres. Also, both the consignee and transporter need to be in the same state and union territory.

Numerous manufacturers outsource a portion of the manufacturing to a third-party vendor. In terms of the e-way bill, the primary manufacturer is referred to as the principal and the third party as a job-worker. If the principal sends goods to a job-worker located in another state, either can generate the e-way bill, provided the job-worker is also registered.

If an entity transports handicraft goods from one state to another, it must generate the e-way bill regardless of the consignment value. Even if the entity is exempt from registration, they have to generate the e-way bill.

Other important e-way bill GST rules

The carrier must generate an e-way bill when the consignment’s value exceeds ₹50,000. Other e-way bill generation rules are as follows:

  • For multiple consignments of varying values

    You may have to ship multiple consignments at once. Not all of them will have values exceeding ₹50,000. For the ones that do, you need to generate an e-way bill. Moreover, you can voluntarily generate e-way bills for individual consignments whose value is less than ₹50,000. The transporter carrying multiple consignments in one vehicle needs to consolidate the e-way bills by indicating each e-way bill’s serial number. The transporter needs to do the same before transportation.

  • For multiple vehicles transporting the same consignment

    Often the consignment gets transported via multiple vehicles before reaching its destination. In such cases, the transporters are required to update the details of the new vehicle on the e-way bill through the GST portal.

Non-compliance with e-way bill rules

If you fail to generate e-way bills or they are not in accordance with Rule 138 of the CGST Rules, 2017, wherever necessary, you are liable for the following:

  • Penalty

    Per Section 122 of the CGST Act, 2017, you are liable to pay whichever is greater between the two:

    • ₹10,000 in penalties for transportation of your goods without the e-way bill

    • The eventual tax amount being evaded as a result of not complying with GST rules

  • Consignment detention/seizure

    Per Section 129 of the CGST Act, 2017, the authorities can detain or seize the consignment in transit for not being GST compliant.

E-way bill exemption

You need not generate an e-way bill for the following:

  • Consignment value less than ₹50,000

  • Transportation of specific goods stated in Annexure to Rule 138(14) of CGST Rules, 2017

  • Goods transported via non-motorised conveyance

  • Goods transported from the airport, air cargo complex, port and land customs station to a container freight station or an inland container depot for clearance from the Customs department

  • Movement of goods within specific areas stated under Rule 138(14)(d) of the SGST Rules, 2017

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​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.

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