E-Way Bill

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What is an eway bill?

e-way bill is short for Electronic Way Bill. GST E-way bill is a document used to track goods in transit introduced under the Goods and Service Tax. A taxable person registered under GST involved in the transportation of goods with a value of over Rs.50,000 must possess an E-way bill generated on the GST Portal.

LEDGERS has made E-way bill generation and management very simple for business. The Ledgers E-way bill tool is synced to GST invoices, bills of supply, purchases invoices, and customer or supplier accounts.

eWay Bills can be generated seamlessly at the click of a button and shared with the customers or suppliers. The procedure for moving the movements of goods is prescribed in the E-way bill rules. However, it is to be noted that when the GST Act came into being on the 1st of July, the E-way bill implementation was deferred.

Useful Links
  • GST Registration for New Business
  • Documents Required for GST Registration
  • GST Registration Online: A Guide

Who should Generate an eWay Bill?

The following cases wherein a person having GST registration are causing goods movement should generate an E-way bill.

  • eWay Bills generation is done when there is a movement of goods of more than Rs.50,000 value to or from a registered person. The registered person can even generate an E-way bill if the goods’ valuation is less than Rs.50,000.
  • An unregistered person is also required to generate an E-way bill. When an unregistered person makes a supply to a registered person, the receiver must ensure that all the compliances are complied with.
  • A transporter carrying goods via road, air, rail, etc., is required to generate an E-way bill if the supplier has not generated any E-way Bill.

Documents required to generate eWay Bills

  • Invoice/ Bill of supply/ Challan relevant to the consignment of goods
  • In case of Transport by road- Transporter ID or the vehicle number
  • Transport by rail, air, or ship- Transporter ID, Transport document number, and date

The E-way bill consists of two parts Part A and B. The Part A of the E-way bill collects the details related to consignment, usually the invoice details. Accordingly, the following information needs to be submitted.

 

  • GSTIN of the recipient must be submitted.
  • The Pin code of the place where goods are delivered needs to be mentioned.
  • The invoice or the challan number against which the goods are supplied must be submitted.
  • The value of consignment is to be mentioned.
  • HSN code of the goods which are transported should be entered. If the turnover is up to INR 5 crores, the HSN code’s first two digits should be mentioned. If the turnover is more than INR 5 crores, a four-digit HSN code is required.
  • The reason for transportation should be predefined, and the most appropriate one needs to be selected.
  • The transport document number should be indicated. It includes goods receipt number, railway receipt number, airway bill number.

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eway bill validity

What is the minimum distance required for E-way bill?

The significant amendment made effective video notification no. 12/2018- Central tax dated 7th March 2018 changes in the validity period of E-way bill. The new validity period provisions of the E-way bill are tabulated here:

Type of ConveyanceDistanceE-way bill
Other than Over dimensional cargoLess than 100 km1 day
For every additional 100 km and thereofAdditional 1 day
For Over dimensional cargoUp to 20 km1 day
For every additional 20 km and thereofAdditional 1 day

The relevant date on which the E-way bill has been generated and the period of validity would be counted from the time at which the E-way bill has been generated, and each day would be counted as the period expiring at midnight of the day immediately following the date of generation of the E-way bill.

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