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Tata Capital > Blog > Eway Bill – What is Eway Bill? E Way Bill System, Rules & Generation Process Explained

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Eway Bill – What is Eway Bill? E Way Bill System, Rules & Generation Process Explained

Eway Bill – What is Eway Bill? E Way Bill System, Rules & Generation Process Explained

The introduction of the Eway Bill under the Goods and Services Tax (GST) regime marked a significant shift in how transportation of goods is regulated in India. This comprehensive guide aims to demystify the Eway Bill system, detailing its rules, generation process, and recent updates, while offering insights into how it affects MSME businesses and those seeking startup or small business loans.

Recent Updates on E-Way Bill

Recent amendments and updates to the Eway Bill system have brought about changes that are crucial for businesses to understand. These updates ensure smoother compliance and ease of transportation for goods across state lines.

What is an Eway Bill?

An Eway Bill is an electronic document required for the transportation of goods worth more than INR 50,000. It is generated on the GST portal and serves as a proof of compliance with GST laws during the transit of goods.

When Should Eway Bill be Issued?

The bill must be generated before the commencement of goods transportation and is mandatory for both inter-state and intra-state movement under specified conditions.

Who Should Generate an Eway Bill?

The responsibility of generating an Eway Bill lies with the consignor, consignee, or the transporter, depending on the circumstances of the goods movement. Understanding this is crucial for businesses, especially for MSMEs and startups managing their logistics.

The Transporters Need Not Generate the Eway Bill (as Form EWB-01 or EWB-02) Where All the Consignments in the Conveyance:

In certain cases, transporters are exempted from generating Eway Bills, especially when the conveyance carries goods that fall under specific exemptions.

Cases When Eway Bill is Not Required

There are specific scenarios where an Eway Bill is not required, such as the transport of exempted goods, goods transported under customs supervision, and certain specified conveyances.

State-wise E-Way Bill Rules and Limits

The Eway Bill system is uniform across India, but certain states have specific rules and limits that need to be adhered to. This section will explore these state-wise regulations.

How to Generate Eway Bill on Portal

Generating an Eway Bill involves a series of steps on the GST portal. This section will provide a detailed guide on how to create an Eway Bill online.

SMS E-way Bill Generation on Mobile

Businesses can also generate Eway Bills through SMS, making it a convenient option for those on the move, a feature particularly beneficial for small business owners.

Validity of Eway Bill

The validity of an Eway Bill depends on the distance the goods are transported. This part will elaborate on how the validity period is calculated and what happens when it expires.

Documents or Details Required to Generate Eway Bill

Certain documents and details are essential for generating an Eway Bill. This section will list these requirements, helping businesses prepare in advance.

Conclusion

Understanding the Eway Bill system is essential for businesses, especially for MSMEs and startups that rely on the seamless transport of goods. Complying with these regulations ensures smooth business operations. If you’re looking to expand or streamline your business, consider exploring the flexible business loan options offered by Tata Capital, tailored for MSMEs and startups. With their support, managing the financial aspects of your business becomes more efficient, allowing you to focus on growth and compliance with regulatory requirements.

Expand Your Business with Tata Capital

At Tata Capital, we understand the unique challenges faced by MSMEs and startups. Our range of startup loans and small business loan options are designed to support your growth journey. Whether it’s for expanding operations, investing in technology, or ensuring regulatory compliance, our financial solutions are here to help. Explore your options today and take the next step in your business journey.