As we move ahead post the initial hiccups in the registration and fixing the invoicing system under GST regime. The next thing to focus on is the E-way bill generation for transportation of goods.

In order to simplify the process of waybills generation with respect to earlier VAT regimes, the government is trying to shift to a completely online transparent process. This will do away with the discretionary powers of the tax authorities that sometimes restricted the movement of goods between the states.

What is an E-way Bill?

E-way bill is the document required for the transportation of goods with the value in excess of Rs. 50000 by a registered dealer (Seller), to be generated online before the commencement of movement of the goods. It has to be generated where the movement of goods is due to:

1. supply of goods

2. for reason other than the supply of goods – movement for job work

3. due to inward supply from an unregistered dealer – the responsibility of the buyer and not the seller

Where supply may be:

• for a consideration (payment)

• in the course of business

• not in the course of business

• without consideration (without payment) – eg. Free of cost supply

Supply means a sale of goods, transfer of goods (branch transfers), Barter / Exchange

Therefore, E-way bill will be required mandatorily for all movement of goods with the value in excess of Rs. 50,000 and discretionarily (not mandatory but advised) for the goods valued less than Rs. 50,000.

How to get an E-way bill??

An E-way bill can be generated by filling in the required information with respect to the supply of goods in the way illustrated below: