January 17, 2018

With an aim to introduce uniformity across the states for seamless inter-state movement of goods, the electronic way bill or e-way bill system will be implemented by the government from February 1.

The e-way bill for the inter-state movement has been advanced to February 1 from April 1, while the trial began from January 16. The e-way bill requires online pre-registration of goods before transportation under the new GST regime. Under the e-way mechanism, all goods worth over Rs 50,000 will have to be pre-registered online before they are moved for sale beyond 10 km. The e-way bill mechanism has been introduced in the GST regime to plug tax evasion loopholes. Tax evasion was one of the reasons cited by the government for the fall in revenue collection in October.


1)Single e-way bill for hassle-free movement of goods throughout the country.

2)No need for separate transit pass in each state for movement of goods.

3)Shift from departmental-policing model to self-declaration model for the movement of goods.


1)Taxpayers or transporters need not visit any tax officers or checkposts for generation of e-way bill or movement of goods through states.

2)No waiting time at check-posts and faster movement of goods thereby optimum use of vehicles or resources, since there are no checkposts in GST regime.

3)User-friendly e-way bill system.

4)Easy and quick generation of e-way bill.

5)Checks and balances for smooth tax administration and process simplification for easier verification of e-way bill by tax officers.

When an e-way is generated, a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. As per the schedule of implementation, the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018, the Finance Ministry statement said. Trade and transporters will be able to use it on a voluntary basis from January 16.

E-way bill is generated when there is a movement of goods:

1)In relation to the supply.

2)For reasons other than a supply (say a return).

3)Due to inward supply from an unregistered person.

In this case, a supply can either be:

1)Sale – sale of goods and payment made

2)Transfer – branch transfers for instance

3)Barter/Exchange – where the payment is by goods instead of in money

[The Financial Express]