Glossary
What is an e-way bill?
The electronic permit that has to exist before a truckload of goods leaves your gate.
Updated
In short
An e-way bill is an electronic document generated on the government's e-way bill system before goods above a set value are moved. SimpleERP does not generate e-way bills; you create them on the portal from the invoice details.
An e-way bill is an electronic document generated on the government's e-way bill system before goods worth more than ₹50,000 in one consignment are moved, whether by road, rail, air or ship. Part A records the supplier, recipient, goods, HSN, value and invoice number; Part B records the vehicle. It is separate from the tax invoice but is built from the same details and travels with the goods.
E-way bill: a worked example
Lakshmi Steel Furnitures sends 10 steel racks worth ₹58,882 including GST to a dealer in Kochi, about 190 km from Coimbatore. The consignment is over ₹50,000, so it generates an e-way bill before the truck leaves. At one day per 200 km for ordinary cargo, the bill is valid for one day. Figures assume 18% GST. Rates change, so confirm the rate for your goods with your CA or the GST portal before you rely on it.
When is an e-way bill not needed?
Below the ₹50,000 consignment value, for goods exempted by the rules such as many unprocessed farm goods, for non-motorised transport, and for some short-distance movements to a transporter. Several states set their own limits or exemptions for movement within the state, so check your state's rule before relying on the national limit.
FAQ
Questions, answered
Is the ₹50,000 limit per invoice or per truck?
Per consignment, which usually means per invoice including GST. If one vehicle carries several invoices each under ₹50,000, the transporter may still need a consolidated e-way bill depending on the rules in force, so check with your transporter.
Who generates the e-way bill, the seller or the transporter?
Usually the seller, as the supplier causing the movement. The buyer can generate it when the buyer arranges the movement, and a transporter can generate it when neither has. Part B with the vehicle number can be filled by the transporter.
Can I cancel an e-way bill?
An e-way bill can be cancelled within 24 hours of generation, if the goods have not moved or the details are wrong and it has not been verified in transit. After that it cannot be cancelled; it simply expires.
Do I need an e-way bill for job work movements?
Job work movements need an e-way bill when goods are sent to a job worker in another state, whatever the value, and above the limit within a state. The document that travels with job work goods is a delivery challan rather than a tax invoice.
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The document a GST-registered business issues for a taxable sale, with the mandatory GST fields.
Read moreGST compliance
Place of supply, HSN summary, registers and the input tax summary, and what is not included.
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