Chapter 4: E-Way Bill Generation and Requirements

An e-way bill (Electronic Way Bill) is an essential electronic document under India’s Goods and Services Tax (GST) regime, generated on the GST common portal. It is identified by a unique e-way bill number (EBN). This system is designed to ensure transparent and seamless movement of goods, combat tax evasion, and facilitate compliance within the GST framework.

The generation of an e-way bill is mandatory for the movement of goods when the consignment value exceeds a specified threshold. For inter-state movement, this threshold is generally . For intra-state movement, while it can vary by state, it often also stands at .

The responsibility for generating an e-way bill can fall on various parties involved in the supply chain:

Registered Person (Consignor or Recipient/Consignee):

When a registered person transports goods, either as the consignor or the recipient, they are primarily responsible for generating the e-way bill. This applies whether they use their own conveyance, a hired one, or public transport by road. The registered person must provide the necessary information in Part B of the e-way bill on the common portal.

For transportation by railways, air, or vessel, the registered person (supplier or recipient) must generate the e-way bill. They are required to furnish information in Part B, including the transport document number (e.g., Goods Receipt Number, Railway Receipt Number, Airway Bill Number, or Bill of Lading Number), either before or after the commencement of movement.

Transporter:

If a registered person does not generate the e-way bill and entrusts the goods to a transporter for road transport, the transporter assumes responsibility. In such cases, the registered person must first provide the transporter’s details in Part B on the common portal. The transporter then generates the e-way bill based on the information supplied in Part A by the registered person.

E-way bills are applicable across multiple modes of transport:

Certain situations mandate e-way bill generation even if the consignment value is below the  threshold. These exceptions address regulatory, security, or specific supply chain considerations:

Inter-State Transfer of Goods by Principal to Job-Worker: An e-way bill is required when goods are sent by a principal in one State or Union Territory to a job worker in another, regardless of value. Either the principal or the job worker can generate it, provided they are registered.

Inter-State Transfer of Handicraft Goods by an Exempted Person: For handicraft goods transported inter-state by a person exempt from GST registration under specific clauses of Section 24 of the CGST Act, an e-way bill is mandatory, irrespective of the consignment’s value.

Other Special Situations: The GST law may specify additional circumstances or types of movements requiring an e-way bill, irrespective of value, to ensure compliance and track goods for regulatory or security purposes. These are typically detailed in specific government notifications or guidelines.

The ‘Bill To Ship To’ supply model involves three parties:

A: The entity placing the order for goods.

B: The entity dispatching goods directly to C on behalf of A.

C: The ultimate recipient of the goods.

In this model, two tax invoices are issued: one from B to A, and another from A to C. As per CGST Rules, either party A or party B can generate the e-way bill. However, it is clarified that only one e-way bill is required for the movement of goods.