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Everything About E-Way Bills: Rules, Regulations and Validity
Businesses in India require E-Way Bills for the movement of goods valued over ₹50000 across state borders in India. This bill contains details of the supplier, receiver, goods, and transporters. However, there are certain cases when an E-Way Bill is not required.
In this article, you will get to learn when you require an E-Way Bill and when you do not require it. Also, find the documents required, charges, and other details associated with it.
What Are the Different Cases for an E-Way Bill Requirement?
The following are the cases when an e-way bill is required:
- Goods are transported from one state to another and their value exceeds ₹50000 (except in some states where the threshold is lower).
- A person registered as a consignor or recipient is transporting the goods in a vehicle owned by someone else.
- Supplying involves the movement of goods through an e-commerce operator or a courier agency.
- A principal is transporting goods to a job worker or vice versa.
- When an unregistered person supplies goods to a registered person, and the value of the goods exceeds ₹50000.
What Are the Different Cases When There Is No Requirement for an E-Way Bill?
There are various situations when you do not require to generate an E-Way Bill. Following is the list of such cases:
- You do not require to generate an E-Way Bill when the value of goods transported is less than ₹50000. However, in cases of moving handicraft goods or moving goods interstate the generation of E-Way Bills is mandatory.
- When the goods are transported within the same state or the notified area.
- The mode of transport is a non-motor vehicle.
- Transported goods are under customs supervision or customs seal.
- The consignor, whether it is the Central Government, State Government, or local authority, is transporting goods by rail.
- In cases when goods fall into the category of no-supply goods as per Schedule -III of Central Tax.
- The State or Union Territory GST Rules exempts the transported goods.
- Whenever you transport goods through customs ports, airports, air cargo complexes, and land customs stations to ICD or CFS for custom clearance.
- Goods are transported by the Ministry of Defence.
- When the goods transported are to or from Nepal or Bhutan.
When is an E-Way Bill Required?
Here are the conditions under which you must generate an E-Way Bill (subject to state exceptions):
- Inter-state movement of goods when the value of the consignment exceeds ₹50,000 (inclusive of GST) (either per invoice or aggregate in one vehicle)
- Movement within the same state (intra-state) if the state has notified EWB requirements (many states have, with threshold rules)
- Movement in relation to a “supply” (outward supply) or for reasons other than a supply (e.g. returns, repairs, etc.)
- Movement due to inward supply from an unregistered person exceeding the threshold
- Movement through an e-commerce operator or courier (i.e., goods supplied via e-commerce)
- Movement between a principal and job worker (or vice versa) when goods are transported across states or intra-state (if applicable)
- When a registered consignor / recipient transports goods in a vehicle owned by another person (i.e. transporter involvement)
What Documents Are Needed to Carry When on E-Way Bill Exemption?
For cases when there is no requirement for an E-Way Bill, you must carry the following documents:
- Invoice
- Bill of supply or bill of entry
- Delivery challan
- Transporter's ID proof, such as PAN card, Aadhaar card, etc.
- Copy of E-Way Bill or E-Way Bill number
- E-Way Bills mapped to RFID (Radio Frequency Identification Device).
Note: Not applicable for goods transported by rail, air, or vessel
What Fees Are Applicable for Not Having E-Way Bill or Documents?
If you are not carrying an E-Way Bill with you when required, you have to pay a penalty of ₹10000 or the amount of tax being evaded, whichever is higher. Hence, the minimum charge for not having your E-Way Bill or document is ₹10000.
Which Specific Goods Are Exempt From E-Way Bill?
Following are the goods that comes under the E-Way Bill exemption list:
1. Meat products
- Fresh or frozen bovine animals
- Sheep or goats
- Pig fat and poultry fat
- Horses or mules
- Edible offal meat
2. Seafood and Marine products
- Crustaceans
- Molluscs
- Prawn or shrimp seeds
- Live fish
- Fish fillets or fish meat
- Other aquatic invertebrates
3. Milk and Dairy Products
- Buttermilk
- Curd
- Lassi
- Paneer
- Fresh milk and raw milk
4. Fruits and Vegetables
- Bananas
- Grapes
- Apples and Pears
- Dates and figs
- Mangos
- Cherries and peaches
- Melons and papayas
- Cabbages and cauliflowers
- Potatoes, tomatoes, and onions
- Lettuce
- Cucumbers
5. Grocery Products
- Coffee Beans
- Oats rice
- Maize
- Cereal grains and flour
- Natural honey
- Eggs
6. Other Products
- LPG for domestic use
- Kerosene oil for public distribution
- Postal baggage transported by the Department of Posts
- Currency
- Used personal and household effects
- Coral, unworked and raw
- Printed books, newspapers, and journals
- Judicial and non-judicial stamp papers
To summarise, certain types of goods are exempted for cases when an E-Way Bill is not required to simplify compliance for taxpayers. However, it is important to note that other documents such as invoices and bills of supply should still be in compliance with the rules and regulations. Failing to comply with E-Way Bill rules can result in severe consequences and penalties for taxpayers.