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E-way bill is an electronic way bill required to be generated at the time of transport of goods by every registered person if the value of the consignment exceeds INR 50,000.
It means if the value of one consignment (invoice/ bill/ delivery challan) exceeds Rupees Fifty Thousand, then an E-way bill is required to be generated.
An e-way bill is required to be carried by a person who is in charge of conveyance carrying any consignment of goods for which values exceeds as prescribed above.
An E-way bill shall be generated for -
Supply includes transport of goods not only on account of sales but also for any other reason like inter-branch transfer, purchase from an unregistered person and barter exchange of goods.
However, there are certain instances where an E-way bill is to be created even if value does not exceed INR 50,000.
- Inter-state transfer of goods by a Principal to Job-worker by Principal or registered job worker.
- Inter-state transfer of handicraft goods by a dealer exempted from GST registration
An E-way Bill may be generated by a registered person / transporter through any of the following methods
An E-way bill may be generated by –
Validity of an e-way bill or a consolidated e-way bill is based on the distance the goods have to be transported.
Validity of an e-way bill shall be calculated from the date of generation of e-way bill. An e-way bill shall be valid for the period calculated as follows –
Up to 100 KM
For every 100 KM or part thereof thereafter
1 Additional Day
In case of exceptional circumstances, where goods are not transported within the validity period, the transporter may update details in Part B and extend validity of e-way bill.
Such extension may be made before 4 hours or within 4 hours from the expiry of e-way bill.
An e-way bill once generated cannot be modified except Part B which can be updated with transport details.
In case incorrect information is entered while generating e-way bill, such e-way bill may be cancelled within 24 hours of generation. A new e-way bill shall be created with correct details.
Unless, old e-way bill is cancelled, new e-way bill cannot be generated against same invoice.
Portal restricts preparation of duplicate e-way bills. If an e-way bill is verified by any empowered Officer, then the same cannot be cancelled.
A recipient of goods can view details of e-way bill generated against him on the portal.
The recipient of goods may reject an e-way bill within 72 hours of generation of e-way bill.
If e-way bill is not cancelled within the specified time period, the same shall be deemed accepted.
Note – Where the distance between consignor or consignee and the transporter is less than 50 Kms, Part B details may not be updated by the transporter.
It is imperial to reconcile invoices as per GSTR 1 and e-way bill generated. There may be differences in both on account of various reasons as follows –
These are some of the reasons for difference in GSTR 1 and e-way bill. Thus, making it necessary to reconcile the same to account for any genuine error where e-way bill has not been generated.
From above, we understand what e-way bill is and how/ when a business should prepare an e-way bill.
One can use GSTHero and make e-way bill directly from the software without having to log into GST portal every time.
GSTHero provides various software plugins like Tally, SAP, Marg, Microsoft, etc