E-Way Bill and What it Means for You

Starting today, February 1, 2018, Electronic Way Bill (E-Way Bill or EWB) has become a mandatory requirement for inter-state movement of taxable goods under the Goods and Services Tax (GST). As the name suggests, EWB is essential for transporting goods between two states as well as within the state, and will be valid throughout India. It is designed to replace the transit pass system currently in use across various states in India.

The Bill is intended as a mechanism to prevent leakage of GST by tracking the movement of goods from one part (and place) to another. Thirteen States — Andhra Pradesh, Arunachal Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Puducherry (UT), Sikkim, Tamil Nadu, Telangana, Uttarakhand and Uttar Pradesh — have already implemented EWBs for Intra-State movement of goods. The remaining States will have to follow suit before June 1, 2018.

EWB is applicable on all consignments worth Rs 50,000 and above, moving beyond 10 km, and will have to be issued before the goods are dispatched. It can be generated on the portal http://ewaybill.nic.in by a registered consignor/consignee and a transporter, and is aimed to curb the movement of unaccounted/non-tax paid goods and ensure transparency. As verification processes move online, all transactions can now be tracked, enabling reduced waiting time for transport vehicles.

One E-way Bill can go through multiple modes of transportation before reaching the destination. As per the mode of transportation, the EWB can be updated with every new mode of transportation by using ‘Update Vehicle Number’. It is valid for a day for transporting less than 100 km, and for every additional 100 km, an extra day comes to play.

However, movement of goods in non-motorised conveyance and also certain class of goods like fruits, vegetables, fish, water, jewellery and currency are exempt from generating EWB.

As with most new policies, initial glitches may be experienced at an operational level, but in the long run the transparency and efficiency will benefit the logistics industry.

In order to understand the provisions of EWB Rules and the procedure to register and generate EWB, please visit http://ewaybill.nic.in