What is e-way Bill? Why is it Required?

A waybill is a document that contains the details of a shipment carried by a transporter. It contains the name of the consigner, consignee, destination, shipment origin, etc. The e-way bill is the same thing but in a digital format and implemented under the Goods and Service Tax (GST) regime.

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E-way Bill in Detail

Under the GST regime, a registered taxpayer is required to issue an e-way bill for each shipment of goods worth more than Rs. 50,000 transported at a location 10 km away or more.
The following entities are required to generate an e-way bill when the situation demands it:

• A registered tax person must generate an e-way bill when the value of goods transported is more than Rs. 50,000. However, they can choose to generate it even when the value of goods is below Rs. 50,000.
• An unregistered tax person is also required to generate an e-way bill. However, it’s the responsibility of the receiver (if they are a registered tax person themselves) to ensure that the supply is made as per GST regulations and compliance measures.
• If the supplier hasn’t generated the e-bill, the transporter can generate it on their own.

Some of the special cases in which there is no need for e-way bill generation are when:

• Cargo containers that are being transported are empty
• Goods and transported through a non-motorized transport medium
• Goods are transported to or from Bhutan or Nepal
• Goods are exempted from e-way bill requirements as per the regulations of the state in question
• Goods and transported under the supervision of the customs

The e-wall bills also carry validity which is based on the distance covered. It’s explained in the points below:

• Over dimensional cargo: 1 day when the distance is smaller than 20 km. For each additional 20 km, 1 day of validity is added.
• Non-over dimensional cargo: 1 day when the distance is smaller than 100 km. For each additional 100 km, 1 day of validity is added.