What are GST eWay Bills? Format, Importance & Benefits for MSME.

Posted on Tuesday, July 25th, 2023 | By IndusInd Bank

As a carrier, issuing a waybill to transport goods is a standard procedure. It’s a document that contains vital information about the consignment, including the consignor, origin point, transporter, consignee, and destination. To comply with the Central Board of Indirect Taxes & Customs, this information must be uploaded to the Goods and Services Tax (GST) portal, generating an electronic waybill or e-way bill. Let’s delve into the details of e-way bills, their format, and their significance for MSMEs. 
 
What is an e-way bill? 
An e-way bill is a legally required document for moving consignments to their destinations. It serves as a compliance mechanism where you upload all relevant shipment information to the official GST portal before shipping. According to Rule 138 of the CGST Rules, 2017, registered carriers transporting goods worth over ₹50,000 must generate an e-way bill. This bill ensures GST compliance and allows authorities to track tax evasion. 
 
E-way bill format 
The e-way bill includes an e-way bill number (EBN), bill generation date, and your GST number. It provides these details to the consignor, transporter, and consignee. The e-way bill consists of two parts: 
 
Part A of form GST EWB-01: 
This part includes GST details of the recipient, consignee’s GST details, invoice/challan number and date, delivery place’s pin code, reason for transportation, value of the goods, harmonized system of nomenclature (HSN) code, and 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 comprises the vehicle number. 
 
Generating the e-way bill 
The e-way bill can be generated on the GST electronic portal. However, note that this portal is separate from the GST common portal used for filing GST returns. Registered carriers must register separately on the GST electronic portal to generate e-way bills. Provide your business’s GST Identification Number (GSTIN) on the e-way GST portal and authenticate it with a one-time password received on your registered mobile number. After authentication, create a username and password for the e-way bill portal. Transporters without a GSTIN must enroll on the e-way bill portal and obtain a 15-digit Unique Transporter ID. 
 
Who generates the e-way bill? 
The party responsible for sending or receiving the shipment, regardless of whether they utilize their own vehicle, hired conveyance, railway, air, or water transportation, is required to generate the e-way bill. If transportation is outsourced, the transportation company generates the e-way bill, but only updates Part B. The registered person must provide the relevant details for Part A. Transporters can update Part A only with prior authorization from the consignee or consignor. In certain cases, the transporter may not need to furnish conveyance details in Part B if the distance is less than 50 kilometers and both the consignee and transporter are in the same state or union territory. 
 
E-way bill GST rules 
E-way bills are mandatory when the consignment value exceeds ₹50,000. Some additional rules to note are: 
 
– Multiple Consignments: If you ship multiple consignments simultaneously, generate e-way bills only for those exceeding ₹50,000. You can also voluntarily generate e-way bills for individual consignments below ₹50,000. The transporter must consolidate the e-way bills and indicate the serial numbers before transportation. 
 
– Multiple Vehicles: When consignments are transported using multiple vehicles, update the new vehicle details on the e-way bill through the GST portal. 
 
Non-compliance with e-way bill rules 
Failure to generate e-way bills or non-compliance with Rule 138 of the CGST Rules, 2017 may result in penalties as per Section 122 of the CGST Act, 2017. The consignment may also face detention or seizure per Section 129 of the CGST Act, 2017. 
 
E-way bill exemptions 
E-way bills are not required for consignments valued under ₹50,000, specific goods mentioned in Annexure to Rule 138(14) of the CGST Rules, 2017, and goods transported via non-motorized conveyance. Additionally, certain movements of goods within specified areas may also be exempt. 

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Disclaimer: 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. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.