What is the e-Way Bill System in GST, Its Rules, Validity and Benefits

The full form of eWay bill is electronic way bill. The GST eWay Bill is the key document used to track goods being transported as part of the Goods and Services Tax system. Currently an eWay bill can be easily generated online on the GST Portal and the process is governed by the e-Way Bill rules.

An e-Way Bill has to be generated by any GST-registered entity supplying, receiving or transporting goods under the Goods and Services Tax regime.

In some cases, the transportation of goods under the GST regime can be exempt from the creation of e-way bill. While one reason can be that the value of goods being transported is less than Rs. 50,000 some other reasons for the exemption can be:

• The mode of transport being used is a non-motorised vehicle
• Goods being transported under customs seal or supervision
• Cargo being transported to Bhutan or Nepal
• Goods for customs clearance being transported to Container Freight Station (CFS) or Inland Container Depot (ICD) from a land custom station, air cargo complex or customs port
• Transport of empty cargo containers
• Transport of goods that are exempt under GST rules or included in the exempt goods list specified by states/Union Territories

The above list is for illustrative purposes only and there can be other reasons for applicability of eWay bill exemption.

The validity of an eWay bill depends on 2 factors – distance of transport and whether the cargo is dimensional or over dimensional. Below are the details of eWay bill validity:

In this context, “over dimensional cargo” is defined as cargo that is carried as a single individual unit that exceeds the dimensional limits specified in rule 93 of the Central Motor Vehicle Rules. 1989.

There are some key advantages of using an e-way bill as compared to traditional paper documents: