The e-way bill system was launched nationwide on April 1, 2018, for the inter-state movement of goods. Whereas for intra-state movements, states had until June 3, 2018, to decide when to implement it for goods moved within their own state.
Currently, as per the latest GST rules, you need to generate an e-way bill when transporting goods worth more than Rs. 50,000. This rule applies to inter-state movements without any exception. However, for intra-state movements, you need to generate an e-way bill only if the state has adopted this system.
Such a generation of e-way bills ensures compliance with GST and reduces tax evasion. It also allows real-time tracking of goods which helps all the involved parties, such as transporters, businesses, banks, and NBFCs.
Wondering how to generate an e-way bill? In this article, let’s check out how you can generate an e-way bill in various scenarios.
The three modes of delivery that need an e-way bill
You can transport goods in three ways:
- By using your own vehicle for delivery
- By renting a vehicle for the delivery
- By hiring a Goods Transport Agency (GTA) to deliver the goods.
As per the GST rules, in all these cases, you must generate an e-way bill before transporting the goods.
E-way bill generation process under all modes of delivery
Firstly, let’s understand the structure of an e-way bill. An e-way bill of format EWB-01 is divided into two parts:
| Part A: Goods information | Part B: Transportation details |
| Goods and Services Tax Identification Number (GSTIN) of the recipientPIN code of the delivery placeHSN codeValue of goodsInvoice or challan number with dateReason for delivery | Vehicle numberTransporter IDTransport document number |
Now, as mentioned above, you need to generate an e-way bill for all three modes of transportation. However, the process of generation differs in each mode. Let’s understand it below:
Scenario 1 – Using your own vehicle
- If you’re transporting goods using your own vehicle, you need to create an e-way bill by filling both Part A and Part B.
- At the time of generation, you will need to fill in Part A of the bill with details like the value of goods, HSN code, the destination, etc.
- In Part B, you only need to enter the vehicle number as you are using your own vehicle.
- There is no need to mention any transporter or their GST number.
Scenario 2 – Using a hired vehicle
- If you hire a vehicle for transporting goods, the process is the same as using your own vehicle.
- Again, you will fill in Part A with relevant details.
- However, in Part B, you need to mention the vehicle number of the hired vehicle.
- You are not required to enter any transporter details.
Scenario 3 – Using a GTA
If you use a transport service (GTA), there are two options:
- Option I: Consignor or consignee generates the e-way bill:
- The person sending or receiving the goods will fill in both Part A and Part B.
- Option II: Transporter generates the e-way bill:
- If the transporter is handling the e-way bill, the consignor or consignee will provide them with the necessary details to fill in Part A.
- Next, the transporter will fill the Part B and generate the e-way bill with all the information required.
Conclusion
The e-way bill system is a mandatory requirement as per the GST rules. For businesses active on online marketplaces or running physical stores, generating an e-way bill is necessary if the value of transported goods is more than Rs. 50,000.
Whether you use your own vehicle, hire one, or opt for a GTA, such an e-way bill must be created before goods are transported. The process involves filling in two parts:
- Part A, which includes details about the goods, like the HSN code
- Part B, which covers transportation details, like the vehicle number
The generation rules are simple but vary slightly depending on the method of transportation. To ensure compliance and accurately create an e-way bill, you must adhere to these rules.