How Live Impex Helps Customs Agents with E-Way Bills

Team Live IMPEX
Sep 15
4 min read

The e-way bill, or "Electronic Way Bill," is a concept that was first introduced and implemented under the GST (Goods and Services Tax) framework. It is a mandatory document for the electronic movement of goods valued over Rs 50,000. This important document (generated on the official E-way Bill portal) helps to facilitate the seamless movement of goods from one location to another and acts as a tool to prevent tax evasion by tracking the movement of goods across states.

Who Needs to Generate an E-Way Bill?

Registered Persons: An e-way bill must be generated by a registered person when the movement of goods is valued at more than Rs 50,000. They can also choose to generate an e-way bill even if the value is below this threshold.
Unregistered Persons: Even unregistered persons are required to generate an e-way bill. If an unregistered person supplies goods to a registered person, the receiver is responsible for ensuring all compliances are met as if they were the supplier.
Transporters: A transporter carrying goods by road, air, or rail must generate an e-way bill if the supplier has not already done so.

When is an E-Way Bill Not Required?

There are several scenarios where an e-way bill is not necessary:

When the mode of transport is a non-motor vehicle, such as a horse cart or manual cart.
When goods are being transported under customs supervision or seal.
When empty cargo containers are being transported.
When goods are being transported from a Customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
When goods are transported under a Customs Bond from an ICD to a Customs port or from one customs station to another.
When a consignor transports goods to or from a weighbridge for weighment within a distance of 20 km, provided it is accompanied by a Delivery Challan.

Understanding the E-Way Bill Parts and Validity

An e-way bill consists of two parts:

Part-A: This part is a temporary number generated after entering all the details. It is useful when you have prepared an invoice but lack the transportation details. The Part-A slip can be shared with the transporter or used later to generate the full e-way bill by entering the Part-B details.
Part-B: This section is for entering details about the mode of transportation.

The validity of an e-way bill depends on the distance and the type of cargo:

Other than Over-dimensional Cargo: The e-way bill is valid for one day for distances less than 200 km, with an additional day for every extra 200 km or part thereof.
Over-dimensional Cargo: The e-way bill is valid for one day for distances less than 20 km, with an additional day for every extra 20 km or part thereof.

Once generated, an e-way bill cannot be edited or modified, though Part-B can be updated. If incorrect information was entered, the e-way bill can be canceled and a new one generated, as long as the cancellation is done within 24 hours of its generation.

The Importance of E-Way Bills

The implementation of the e-way bill system offers several key benefits:

Tax Compliance: It helps prevent tax evasion by providing a clear trail for the movement of goods.
Reduced Documentation: The process is streamlined by digitizing paperwork, which minimizes manual errors and saves time.
Improved Logistics: It enhances the efficiency of the supply chain by providing real-time tracking of consignments.
Ease of Doing Business: It simplifies the process for businesses to transport goods across state lines.
Regulatory Oversight: It aids government authorities in tracking and verifying goods in transit, ensuring that all necessary taxes are paid.