Font size:
Print
E-way Bills and Supply Chain Revival
Context:
The issuance of electronic permits, or e-way bills, required for transporting goods within and across states—a critical indicator of economic activity—bounced back in December, reaching 112 million.
More on News
- This marks a recovery from the five-month low of 101.8 million recorded in November, according to data from GSTN, the platform handling Goods and Services Tax (GST) returns.
- This uptick reflects a normalisation in supply chain activities after a steady rise from July to October, which peaked at a record 117.2 million due to festival-season demand.
- The decline in November was attributed to businesses taking a pause following the seasonal high.
About E-way bills
E-way bills are electronic documents mandated under the Goods and Services Tax (GST) regime in India, facilitating the movement of goods valued over ₹50,000.
Definition and Purpose
- An E-way bill (FORM GST EWB-01) serves as proof of the movement of goods and is generated on the GST portal.
- It is designed to ensure compliance with GST laws and to help track the transportation of goods, thereby reducing tax evasion.
- The e-way bill consists of two parts:
- Part A: Contains details such as GSTIN of the supplier and recipient, place of delivery, invoice number, value of goods, and reasons for transportation.
- Part B: Includes transport details like vehicle number.
Applicability
E-way bills are required when:
- The value of goods exceeds ₹50,000.
- Certain specified goods require an e-way bill regardless of their value.
- Goods are transported by road, rail, air, or vessel.
Generation Process
E-way bills can be generated through:
- The official GST portal (ewaybillgst.gov.in).
- SMS or mobile applications.
- API integration for businesses with high volumes.
Validity
The validity of an e-way bill depends on the distance travelled:
- Valid for one day for distances up to 100 km.
- An additional day for every subsequent 100 km.
- From January 1, 2025, e-way bills can only be generated for documents dated within 180 days prior to generation.
Key Changes and Updates
- Increased distance limits for intra-state transport without needing an e-way bill (now up to 50 km).
- New rules regarding the generation timeline and validity periods effective from January 2025.
