Answer By law4u team
An e-way bill is an electronic document required under the GST system for the movement of goods from one place to another. It is governed by the provisions of the Central Goods and Services Tax Act, 2017 and the associated GST rules. The e-way bill system is designed to ensure that goods being transported are properly documented and tax compliance is maintained during transit. What is an e-way bill? An e-way bill is a digital permit generated on the GST portal that contains details such as: Supplier and recipient details Description of goods Value of goods Transport details (vehicle number, transporter ID, etc.) GST identification numbers (if applicable) Once generated, it produces a unique e-way bill number (EBN) which must accompany the goods during transportation. When is an e-way bill required? An e-way bill is required when there is a movement of goods exceeding the prescribed value threshold (generally ₹50,000), in the following situations: Inter-state movement of goods (between different states) Intra-state movement (within the same state, if notified by that state) Movement for supply, sale, return, job work, or transfer between branches Transport by road, rail, air, or ship Who generates it? Usually: The supplier or recipient (registered person) generates it, or The transporter generates it if the supplier has not done so Purpose of e-way bill Prevent tax evasion and movement of unaccounted goods Track goods in transit in real time Ensure GST compliance during transportation Replace earlier physical transit permits (like waybills in many states) Simple example If a manufacturer in Gujarat sends goods worth ₹1 lakh to a buyer in Maharashtra, an e-way bill must be generated before the goods start moving. In summary An e-way bill is an electronic transport document required for movement of goods above a specified value under GST, ensuring transparency, tracking, and tax compliance during transit.
