Introduction

E-way bill is otherwise known as the Electronic Way Bill that came into effect from 1st April 2018. It is compulsory for Inter-state when the goods are transmitted from one place to another and whose value is more than Rs 50,000. It is generated on the GST Portal that provides a proof that movement of goods has taken place.

The E-way bill has two primary components:

• Part-A (First Component): Encompasses the details of recipient’s GSTIN, place of delivery along with the PIN code, invoice number, date, value of goods, HSN code, the reasons for transporting the goods, transport document number (which may be either the receipt number of the goods or the railway receipt or airway bill number).
• Part-B (Second Component): Comprises of the transporter details like the vehicle number. It mostly comprises of the transport details that is useful for generating the e-way bill.

Journey of E-way Bill

Integration with the VAHAN System

Recently, the government decided to incorporate the e-way bill along with the Vahan system. The main aim is to reduce the evasion of GST and to improve the operational efficiency of the nation. Ministry of Road Transport & Highways operates and uses the Vahan system since it contains the database of vehicles. With the help of the Vahan system, the verification of the vehicle number in the E-way bill is made in an easy manner.

Those vehicles whose number is available in the Vahan database will have their e-way bill generated or the user will be allowed to generate the e-way bill. However, in case of vehicles whose database is not mentioned in the Vahan system, that particular individual will receive a message stating that their database is not accessible under the Vahan system and hence these vehicles will not be allowed to generate the E-way bill. In such situations, the user must update the vehicle details in the Vahan system before generation of the e-way bill becomes possible.

Importance of E-way Bill During the COVID-19 Pandemic

The E-way bill system played a crucial role in the economic activities of the country since it helped to monitor the movement of essential goods transported across the country. The documents and reports of medical supplies played an essential role to track the national movement of vital supplies including COVID-19 test kits, protective garments, disinfectants, oxygen therapy equipment, pulse oximeters, and medical devices to government departments nationwide.

Flawless Integration with E-Invoicing System

The E-way bill and the E-invoice system have been integrated flawlessly. The authorization of the E-way bill system functions on the E-invoice system and Invoice Reference Portal (IRP), which is used in the process of generating the E-way bill. In the e-invoicing system, the e-way bill has been directly integrated; it depends entirely on the choice of taxpayers: either they can generate the e-way bill along with the e-invoice or at a later stage they can do so with the aid of the IRN (Invoice Registration Number) as a reference. Yet, an E-way bill is considered invalid in case there is no proper E-invoice at places wherever e-invoices are legally mandated. Time and effort can be saved if the taxpayer transmits both transportation and invoice details simultaneously to the IRP, allowing the IRP to generate the e-way bill directly on the portal.

E-way Bill Integration with RFID / FASTag

RFID (Radio Frequency Identification Device) identifies objects through radio waves. A transporter acquires an RFID tag which is fixed at a particular spot of the vehicle (most commonly on the windscreen). It holds details of the E-way bill, and highway RFID tag readers capture and verify the E-way bill details alongside the vehicle details automatically as the vehicle passes toll plazas, updating the government portal in real-time. Several states have made RFID tags mandatory. This tag aids organizations in tracking supply chains effortlessly and tracing missing consignments, providing massive benefits to E-commerce logistics.

Significance of the E-way Bill System

The e-way bill system has many advantages, foremost being that it enables tax officers to identify fraudulent taxpayers and combat GST evasion. The government risks losing substantial revenue if fraudulent taxpayers claim illicit Input Tax Credit (ITC), which can be swiftly detected through supply chain mapping. Key impact functionalities include:

1. Pin-to-pin distance calculation: Enforces automated checks against inappropriate distance entries, preventing the circular recycling of electronic waybills.
2. Blocking multiple e-way bills: Restricting the generation of multiple e-way bills against a single invoice prevents duplicate documentation for the same supply.
3. Extension in transit: Enables transporters to extend validity when goods are delayed in transit or kept temporarily in transshipment godowns.
4. Expiry notifications: Taxpayers and transporters can track the status of E-way bills expiring within 4 days.
5. Vahan database synchronization: Alerts users to invalid or mismatched vehicle registration numbers immediately.

Modes of E-way Bill Generation

There are six distinct modes available for generating an E-way bill:

A normal E-way bill is generated when goods belong to a single HSN code category. When multiple types of goods under multiple HSN codes are transmitted in a single consignment, the Bulk E-way bill functionality is utilized.

Generation and Verification Trends (Figure 3)

Registration Requirements: Transporter and Consignor / Consignee

The consignor/consignee fills Part-A details whereas Part-B is filled by the transporter. In situations where the consignor or consignee is unregistered, the transporter bears the legal responsibility to fill Part-A of the E-way bill to enable generation, followed by standard Part-B conveyance details (Second Proviso to Rule 138(3) of the CGST Rules).

Transporters not possessing a GSTIN must enroll on the Electronic Way Bill portal by furnishing PAN details. Upon validation, the transporter receives a User ID, password, and a unique 15-digit Transporter ID based on the state code. Transporter ID is mandatory to generate Part-A of the E-way bill.

2023–2024 Budget Highlights for E-Way Bills: Proposed Section 158A

A new Section 158A in the CGST Act is proposed to be inserted, empowering the Government to share information contained in the following statutory documents on the common portal, subject to obtaining consent from suppliers and recipients:

1. Particulars furnished in the application for registration under Section 25
2. Details in GSTR-3B filed under Section 39
3. Details in Annual Returns filed under Section 44
4. E-invoices and E-way particulars uploaded on the common portal for generation of documents under Section 68

Conclusion

The E-way bill ensures that goods transportation strictly complies with GST statutes while serving as an effective tracking and anti-evasion mechanism. Synergistic integration with the Vahan database, FASTag/RFID highway infrastructure, and electronic invoicing enhances nationwide operational transparency. Ultimately, the E-way bill system empowers the logistics sector by extending average daily vehicular transit distances, eliminating transit bottlenecks, and curtailing overall supply chain costs.

References

• https://docs.ewaybillgst.gov.in/
• Basics of GST, Taxmann, 1st Edition; Girish Garg, Basic Concepts and Features of Good and Service Tax In India, International Journal of Scientific Research and Management (IJSRM), 2016 Aug 2.
• Datey VS, GST Ready Reckoner, Taxmann, 4th Edition, 2017.
• Alam, M. (2021). GST: A game changer of the Indian economic system with special focus to E-way bill in India. International Journal of Civil Law and Legal Research, 1(2), 53-57.
• https://taxguru.in/wp-content/uploads/2018/01/Modes-of-Generation-of-E-way-Bills-1.jpg
• https://taxguru.in/goods-and-service-tax/summary-gst-proposals-finance-bill-2023.html

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Author may be reached at: rajipsm22@gmail.com and eboard@icai.in