Introduction
An eway bill is an electronic document. That must be created. To move goods. Costing over Rs. 50,000 within the country. It was implemented under. The GST structure to monitor. The flow of goods across interstate and intrastate borders to eliminate tax fraud. Here, you will find all the information you need about eway bills, including what they are, their purpose, how to create them, their validity, and much more.
What is Eway Bill?
It is an electronic. Document prepared and stored. On the GST portal for transporting goods from one place to another. It says shipment details, goods, recipient, transporter, and vehicle information.
The eway bills. Were implemented. To increase. Tax compliance and monitor the transportation of goods and services. They serve as legal evidence that the supplier is supplying goods to the named recipient.
Which Registered Dealer is Mandatory for Eway Bill Generation?
Eway bills need. To be generated. By registered GST taxpayers who:
- Carriage of goods valued above Rs.50,000 within or outside a state
- Transportation of goods by road, air, rail, or vessel – even if the value is less than fifty thousand rupees.
- Moving goods across international boundaries into India, whether by air, sea, or land.
Eway bills are required. To transport goods. Whether interstate or intrastate. Nevertheless, some states have specific exceptions when the movement of goods is within the state.
Steps to Follow in Creating an Eway Bill
Eway bills can. Be generated. Through multiple methods:
Online Portal
The easiest way is to create them using an online tool at the government-provided website.
GSTN Provided Site
You can also create eway bills through other applications admitted by the Goods and Services Tax Network, or GSTN.
SMS
Through the eway bill portal, taxpayers can generate them through the short messaging service SMS.
Mobile App
The eway bill portal also has Android and iOS mobile apps to generate them on the go.
API Interface
Big organizations commonly design an API interface on the organization’s portal or application to generate multiple bills simultaneously.
Offline Tool
The concerned taxpayers can also utilize the offline eway bill tool to generate and print the shipment documents for the goods.
Key Details Required
Regardless of the method, the person generating an eway bill would need to provide the following information accurately:
- GSTIN of Supplier
- GSTIN or UIN of Recipient
- Invoice or Delivery Challan No
- Invoice or Challan Date
- Value of Goods
- HSN Code
- Reason for Transportation
- Transport Document Number
You would also require the address details for Parts A and B to create an eway bill.
Eway Bill Validity
An eway bill’s validity starts. When a shipment is made. The duration depends on the distance goods have to travel:
- Up to 100 km – 1 Day
- For every extra 100kms – 1 extra day
- Over Dimensional Cargo – Upto 20km – 1 day
The vehicle might. Be held for further checks. If the shipment. Is not made. Within the validity period. It is also important to note. That extra charges and penalties may. Be charged for expired. Eway bills.
The Procedure for Canceling an Eway Bill
Sometimes. Orders get canceled. Or you may produce a wrong eway bill. These can be quickly canceled. Online to avoid penalties:
- Log on to the eway bill portal
- Click on “Edit/Update EWB”
- Select and click on “Cancel” and then on “Confirm.”
If the shipment is still valid, you must create a new eway bill. The canceled number cannot. Be used again.
Benefits of Eway Bills
Here are some of the benefits of eway bills:
- Curb Tax Evasion – Track the movement of goods
- Faster Transit – If the truck has a valid bill, it can cross state boundaries swiftly.
- Tax Compliance. GST returns get auto. Updated. So there are fewer chances of error.
- No paper used – Friendly to the environment and helps minimize the storage of papers.
- Auto Data Upload – New GST return forms will auto-pick eway bill data
- Easy Verification – Bills presented are easily retrievable for the officers to verify remotely.
Rules Regarding Eway Bills for Different Modes of Transport
As discussed below, the generation of eway bills does not differ much from one transport mode to the other. However, there are some additional rules for shipping goods through rail, air, and waterways:
1 Shipping by Rail
- Issue a bill before the first delivery of the vehicle and not on each vehicle.
- Also required Railway Receipt or dispatch document
- Exempted for empty. Containers being returned
2 Shipping by Air
- An airway bill. Can be issued instead. For air transport.
- Must have at least the following information as an eway bill
- States: Up to Rs. 50,000 may be exempted
3 Shipping by Waterways
- Must have an eway bill if transporting to another state
- Allowed if the delivery is limited. To the state where the business is located
Eway Bills for Multimodal Shipments
While transporting goods through rail, road, air, or ship transport, you must pay only a one-way bill before starting the first journey for goods transported through multimodal transport. When creating the eway bill online, you must provide some details of the multimodal shipment.
Exemptions from Eway Bills
Eway bills. Are not needed. In the following situations:
- Sound transport, up to a distance of not more than fifty kilometers, within the same state.
- Products. That are taken. To or from ports. Airports. Or stations
- Transit of empty cargo containers
- Exemptions from GST like petrol and diesel fuel
- Alcoholic beverages
- Jewelry transported across India
However, there are always requirements for each state, so please check the exceptions that apply to your state.
Offline Eway Bill Verification
Efficient verification. Means have been. Established. To check the goods in transit and the information keyed while preparing the eway bill.
Officers can stop the vehicle midway to check offline, provided the driver and the transporter have a printable copy of the eway bill for verification. They can also clear bills remotely. Online if a physical check. Of the bills is required.
Penalties for Non-Compliance
Suppose officers find discrepancies. In the eway bill during verification. Or goods. Are transported. Without one. In that case. Penalties can. Be imposed:
- Total IGST of 10% on the invoice value or Rs 10,000, whichever is higher.
- Vehicles may. Be detained. And allowed to leave. After establishing ownership and paying tax and penalty as required.
Consequently, it is advisable always to carry genuine eway bills whenever one is in transit to avoid such steep fines.
Integration with FASTag
Eway bills. Have now been linked. With the vehicle’s FASTag account. FASTag is the Electronic Toll Collection system that employs RFID tags for making payments.
This has improved the monitoring of the movement of goods and reduced the role of human interference in the verification process.
Eway Bill Queries – Frequently Asked Questions
Here are answers to some frequently asked questions about eway bills:
What if the vehicle develops some mechanical failure when it is halfway there?
If the vehicle develops mechanical defects in transit before reaching the required validity period, you can extend the eway bill’s validity. To do so, go to the portal and click the “Extend” button.
Is an eway bill required for personal goods?
The eway bill is only for the transport of goods for business by the registered taxable person. The movement of goods for personal household consumption does not require it.
Can the recipient party generate the eway bill?
The recipient or buyer party can generate it only in exceptional circumstances—with the supplier’s consent when the supplier sends goods directly to the recipient or if there is no invoice.
Is insurance compulsory for goods in transit?
It is advisable to obtain transit insurance, especially when the goods are worth more than Rs. 50,000 and are being. Transported over long distances. This helps to guard against stock loss.
Conclusion
Since its inception in 2018, eway bills have enhanced the tracking of goods movement, curtailed fake transactions, and improved tax compliance, among other benefits.
Integration with FASTag, creating an offline app for officers, and using UPI for toll payments can further enhance the monitoring of supplies in transit. However, it has reduced GST leakage and led to increased revenue and growth, though there is evidence of the effect in limited form.
As more people become aware of eway bills and technology usage to comply with the new taxation system, compliance is sure, and the movement of goods across India will be easier and safer.
