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eWay Bill Registration

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eWay Bill Registration in India

An E-Way Bill (Electronic Way Bill) is a unique document or a digital permit required for the movement of goods worth more than INR 50,000 within India. This system was introduced under the Goods and Services Tax (GST) regime to ensure the seamless movement of goods across states while preventing tax evasion.

Key Features of the E-Way Bill System:

  • Digital System: The E-Way Bill system is entirely digital, making it easier for businesses to generate, share, and verify E-Way Bills online.
  • Unified Platform: The system provides a unified platform for all stakeholders, including suppliers, transporters, and recipients, to manage the transportation of goods.
  • Real-Time Tracking: Authorities and stakeholders can track the movement of goods in real time, ensuring transparency and reducing the scope of fraud.
  • User-Friendly Interface: The E-Way Bill portal is designed to be user-friendly, facilitating easy navigation and quick generation of bills.

When is an E-Way Bill Required?

An E-Way Bill is mandatory for:
  • Movement of goods worth more than INR 50,000.
  • Inter-state and intra-state transport of goods.
  • Transfer of goods between businesses, consignments to job workers, or movement for exhibitions or fairs.

Benefits of the E-Way Bill System

The E-Way Bill system offers several advantages for businesses, government authorities, and the overall economy. Here are some of the key benefits:

Streamlined Logistics:

The digital nature of the E-Way Bill system simplifies the process of transporting goods across states and within states, reducing paperwork and administrative burdens.

Improved Compliance:

The system enhances compliance with GST regulations, as every movement of goods is recorded and tracked, reducing the chances of tax evasion.

Real-Time Tracking:

Businesses and authorities can track the movement of goods in real-time, ensuring transparency and enabling quick action in case of discrepancies.

Reduction in Transit Time:

With the elimination of manual checks and reduced waiting times at checkpoints, the E-Way Bill system significantly decreases transit times, leading to faster delivery of goods.

Cost Efficiency

The reduction in paperwork, manual checks, and delays leads to cost savings for businesses in terms of reduced labor, storage, and transportation costs.

Enhanced Inventory Management:

Real-time tracking and faster transit times help businesses manage their inventory more efficiently, reducing the need for excess stock and minimizing storage costs.

Boost to Digital India Initiative:

The E-Way Bill system supports the Digital India initiative by promoting the use of digital platforms for business processes, contributing to a more digitized economy.

Better Tax Revenue Collection:

The system ensures accurate reporting and tracking of goods, leading to better tax revenue collection for the government and minimizing tax evasion.

Easy Integration with Existing Systems:

Businesses can integrate the E-Way Bill system with their existing accounting, invoicing, and ERP systems, making it easier to generate E-Way Bills and maintain records.

Simplified Audits:

With all data being stored digitally, audits become simpler and more efficient, as all the required information is easily accessible and verifiable.

Environmental Benefits:

The reduction in paperwork and manual processes leads to lesser use of paper, contributing to environmental conservation efforts.

Transparency and Accountability:

The system ensures that all stakeholders, including suppliers, transporters, and recipients, are accountable for the movement of goods, fostering a culture of transparency.

Standardized Processes:

The E-Way Bill system standardizes the process of transporting goods, ensuring uniformity across states and reducing discrepancies.

Easy Accessibility:

The user-friendly portal and mobile application make it easy for businesses of all sizes to generate, manage, and track E-Way Bills

Fraud Prevention:

The digital system helps prevent fraud by providing accurate and real-time data, making it difficult to manipulate or falsify information.

Steps to Generate an E-Way Bill

  • Login to the E-Way Bill Portal: Visit the official E-Way Bill portal (ewaybillgst.gov.in) and log in with your credentials.
  • Generate New E-Way Bill: Navigate to the ‘E-Way Bill’ menu and select ‘Generate New’.
  • Enter Details: Fill in the required details as listed above, including the GSTIN of supplier and recipient, invoice details, HSN code, value of goods, and transporter details.
  • Submit and Generate: After entering all the details, click on ‘Submit’. The system will generate a unique E-Way Bill Number (EBN) along with a QR code.
  • Print or Share: The E-Way Bill can be printed or shared digitally with the transporter and the recipient for verification during the transit.

By ensuring all necessary documents and information are accurately provided, businesses can generate E-Way Bills efficiently, ensuring compliance with GST regulations and smooth transportation of goods.

Validity of E-Way Bill

Distance-Based Validity:
  • The validity of the E-Way Bill is primarily determined based on the distance that the goods are expected to be transported:
  • Up to 100 kilometers: Valid for 1 day from the date and time of generation.
  • For every additional 100 kilometers or part thereof: An additional day is added to the validity period.
Calculation of Validity:
  • The validity period starts from the time of generation of the E-Way Bill and continues until the expiry of the specified period based on the distance.
Extension of Validity:
  • In some cases, such as transshipment delay or natural calamity, the validity of the E-Way Bill can be extended. This extension must be done on the E-Way Bill portal before the expiry of the current validity period.
Multiple Modes of Transport:
  • If the goods are transported through multiple modes of transport (road, rail, air, or ship), the validity period is calculated based on the mode that covers the longest distance.
Consolidated E-Way Bills:
  • For multiple consignments transported in one vehicle, a consolidated E-Way Bill can be generated. The validity of the consolidated E-Way Bill is determined based on the longest distance among all the consignments covered.
Importance of Validity
  • Legal Compliance: Ensures that the goods are transported legally and by GST regulations.
  • Avoidance of Penalties: Prevents penalties and legal issues that may arise due to expired E-Way Bills during transit.
  • Efficient Logistics: Helps in planning and executing the transportation of goods efficiently, minimizing delays and disruptions.

Related Guides

Documents Required For Eway Bill

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

Eway Bill FAQ's

What is an E-Way Bill?

An E-Way Bill is an electronic document required for the movement of goods worth more than INR 50,000 within India, under the GST regime.

Who needs to generate an E-Way Bill?

E-Way Bills must be generated by registered persons who are involved in the movement of goods exceeding INR 50,000 in value, either as suppliers, recipients, or transporters.

When should an E-Way Bill be generated?

An E-Way Bill should be generated before the commencement of the movement of goods. For transportation by road, the E-Way Bill must be with the transporter.

What are the documents required to generate an E-Way Bill?

Documents such as invoice/challan/bill of supply, transporter ID or vehicle number, GSTIN of supplier and recipient, HSN code, and details of goods are required.

How is the validity of an E-Way Bill determined?

The validity of an E-Way Bill is based on the distance that the goods are expected to be transported. It starts from the time of generation and varies based on distance increments.

Can an E-Way Bill be canceled?

Yes, an E-Way Bill can be canceled within 24 hours of its generation if the goods are not transported or do not need transportation anymore.

What happens if an E-Way Bill expires during transit?

If an E-Way Bill expires during transit, it cannot be used anymore, and the transporter may face penalties for non-compliance.

Are there any exemptions from generating an E-Way Bill?

Yes, certain goods, distances (less than 20 km), and specific situations are exempt from the requirement of an E-Way Bill. These exemptions are specified under the GST Act.

Can an E-Way Bill be extended if there are delays in transit?

Yes, the validity of an E-Way Bill can be extended on the portal before its expiry, under specific circumstances such as natural calamities or other unavoidable reasons.

Is there a penalty for not carrying or generating an E-Way Bill?

Yes, penalties can be imposed for not carrying or generating an E-Way Bill as per the GST regulations. Penalties may vary based on the nature of the offense.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.