E-WAY BILLS

Under the Goods and Services Tax (GST) regime in India, an e-way bill is an electronic document required for the movement of goods worth more than ₹50,000 (prior to April 2018, this threshold was ₹50,000 in many states; however, it may vary based on state regulations). The e-way bill system is aimed at ensuring seamless movement of goods across state borders and preventing tax evasion.

Here’s an overview of the e-way bill system:

1. Who Generates the e-Way Bill:
   • The e-way bill can be generated by the supplier, recipient, or transporter of goods.
   • For movement of goods by road, the e-way bill needs to be generated on the GST portal or through the e-way bill mobile app before the commencement of the movement.
2. When is the e-Way Bill Required:
   • The e-way bill is required for the movement of goods in a vehicle for:
     • Interstate transportation (between two states)
     • Intrastate transportation (within the same state) if the state has chosen to implement the e-way bill system for intrastate movement as well.
   • It is not required for goods exempted from GST or for specific categories of goods exempted by the respective state governments.
3. Information Required for e-Way Bill:
   • The e-way bill contains details such as invoice number, date of invoice, value of goods, GSTIN of the supplier and recipient, description of goods, HSN code, and transporter details.
4. Validity of e-Way Bill:
   • The validity of the e-way bill depends on the distance to be traveled by the goods.
   • For a distance of up to 100 km, the e-way bill is valid for one day.
   • For every additional 100 km or part thereof, an additional day is allowed.
   • For over-dimensional cargo, the validity period is one day for every 20 km.
5. Update and Cancellation:
   • The e-way bill can be updated or canceled within 24 hours of its generation.
   • After 24 hours, it cannot be edited but can be canceled if the goods are not transported or are not transported as per the details furnished in the e-way bill.
6. Verification by Authorities:
   • The e-way bill contains a unique e-way bill number (EBN) that can be verified by tax officials during transit to prevent tax evasion.

The e-way bill system aims to streamline the movement of goods and ensure compliance with tax regulations. Failure to generate or carry an e-way bill when required can result in penalties under GST laws. Therefore, it’s essential for businesses to understand the e-way bill requirements and comply with the regulations to avoid any legal repercussions.