A digital document required for transporting goods worth over Rs. 50,000
An E-Way Bill (Electronic Way Bill) is a digital document that must be generated on the GST portal before transporting goods worth more than Rs. 50,000 from one place to another in India. It contains details of the goods, the consignor and consignee, the transporter, and the vehicle number. The e-way bill system was introduced under GST to track the movement of goods and prevent tax evasion. It is generated on the E-Way Bill portal and each bill has a unique 12-digit EBN (E-Way Bill Number). The validity of an e-way bill depends on the distance of transport: one day for every 200 km for regular vehicles. Both the supplier and the transporter can generate the e-way bill. If goods are transported without a valid e-way bill, the vehicle and goods can be detained, and a penalty equal to the tax amount or Rs. 10,000 (whichever is higher) can be imposed. For businesses using e-invoicing, Part A of the e-way bill is auto-generated from the e-invoice data.
A spice manufacturer in Kochi ships goods worth Rs. 2,50,000 to a distributor in Chennai (approximately 700 km away). Before dispatch, the manufacturer generates an e-way bill on the portal with details: Invoice No. INV-2024-0892, goods description (turmeric powder, HSN 0910), vehicle number KL-07-AB-1234, and transport distance 700 km. The e-way bill is valid for 4 days (700 km / 200 km per day, rounded up). The transporter carries a printed copy, and if stopped at a checkpoint, the officer can verify it using the EBN.
An e-way bill is required when goods worth more than Rs. 50,000 are transported from one place to another. This applies to sales, purchases, stock transfers, and even job work shipments. Some states have lowered the threshold to Rs. 25,000 or even Rs. 1 for specific goods like tobacco and gold. E-way bills are not required for goods transported by non-motorized conveyance or certain exempt goods.
Either the supplier (consignor) or the transporter can generate the e-way bill. Typically, the supplier generates it before dispatch. If the supplier does not generate it, the transporter must do so before the goods begin moving. The buyer (consignee) can also generate an e-way bill for inward supplies when the supplier has not done so.
If goods are found moving without a valid e-way bill, the vehicle and goods can be detained. A penalty equal to 200% of the tax payable on the goods (or Rs. 10,000, whichever is higher) can be levied. The goods are released only after paying the penalty and applicable tax. Repeated violations can lead to cancellation of the transporter's registration.
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