Vinod Kumar
Under the products and Services Tax (GST) regime in India, the eway bill is essential for maintaining transparency and expediting the flow of products. This electronic document acts as a permit for the interstate and intrastate transportation of commodities above a certain value threshold. Businesses may handle the eway billing procedure effectively and guarantee trouble-free product shipping by being aware of its nuances.
What is an E-Way Bill?
An eway bill is an electronic document generated on the official e-way bill portal (https://ewaybillgst.gov.in/) or through integrated applications. It acts as a digital permit for the movement of goods valued at more than ₹50,000 (Indian Rupees).
What Eway Bill Contains?
Important information regarding the consignment is provided in this document, including:
- Description of the goods
- Value of the consignment
- Name and GST Identification Number (GSTIN) of the supplier (consignor)
- Name and GSTIN of the recipient (consignee)
- Origin and destination of the goods
- Transporter details (if applicable)
When is an E-Way Bill Required?
E-way bill generation is mandatory for the movement of goods exceeding ₹50,000 in the following scenarios:
- Inter-state movement: Transportation of goods between two different states in India.
- Intra-state movement: Transportation of goods within the same state.
Why Eway Billing Matters
Eway billing is important because it:
- Makes sure taxes are paid correctly.
- Helps manage logistics better.
- Makes it easier to do business across different states.
- Improves how businesses work by keeping things transparent.
Benefits of E-Way Billing
E-Way billing helps businesses in several ways:
- Transparency: It makes the movement of goods clear and easy to track.
- Efficiency: By streamlining the billing process, it saves time and reduces errors.
- Compliance: It ensures businesses follow tax regulations, avoiding penalties.
- Cost Savings: Efficient logistics mean lower costs for businesses.
- Improved Record-Keeping: E-Way bills provide a digital record of transactions, making it easier to manage business operations.
How to Make an Eway Bill
- Visit the official e-way bill portal (https://ewaybillgst.gov.in/) and register using your GSTIN. (If don’t have GST? Register it through LegalMate)
- Login to the portal and navigate to the “E-waybill” section.
- Click on “Generate New” and enter the required details about the consignment.
- Once all details are entered, validate and submit the information.
- The system will generate the e-way bill, which you can download and print for your records.
Does Service Provider Need to Generate Eway Bill?
No e-way bill needed for service businesses! E-way bills are for goods movement, not services (unless goods are a major part of the service).
Difference Between E-way Bill and Invoice India
Both e-way bills and invoices are important documents in the Indian GST regime, but they serve distinct purposes:
E-Way Bill:
- Purpose: Permits goods transportation exceeding ₹50,000 within or across states.
- Captures: Consignment details, transporter info.
- Generated by: Supplier, recipient, or transporter with valid GSTIN.
- Validity: Time-bound based on distance.
- Benefits: Enhances transparency, simplifies compliance, improves logistics.
Invoice:
- Purpose: Records sale transactions between supplier and recipient.
- Captures: Goods/services details, price, tax, supplier/recipient info.
- Generated by: Mandatory for all registered businesses for each sale.
- Validity: No expiry, used for tax records.
- Benefits: Facilitates record-keeping, supports input tax credit claims, aids in dispute resolution.
Key Differences:
- Focus: E-way bill for goods movement, invoice for sale.
- Mandatory for: E-way bill for specific goods, invoice for all registered businesses.
- Validity: E-way bill has a time limit, invoice is a permanent record.
