E-Way Bill and the Changing Face of Indian Economy

Earlier this year when the Central Government announced the implementation of e-way bills for movement of goods, it met with a mixed feeling of joy and confusion. Joy, because goods carrier can generate eway bill electronically using software. Confusion – as most transportation companies believed that e-way bills in the country were implemented without discussions and given enough time to fulfill the necessary documentation processes.

Here are some important things you should know about eWay Bill and how it is set to transform the logistics and transportation businesses in India.

State movement of Goods: eWay Bill is a Compulsory

Due to illegal transportation of goods, especially contentious smuggling of alcohol, sugar, grains and meat, eWay Bill was a compulsory mandate announced across India. With eWay Bill, goods carriers can freely transport their cargo from one state to another and intra state. This has greatly streamlined the movement of logistics and reduced possibility of bribery and in advert delays.

eWay Bill could be checked at any time of the transporting of goods, including the stage when it has already been delivered to the destination.

Registered Persons Can Only Make a eWay Bill

eWay Bill can be generated by registered companies or individuals,

Who is a registered person? Let’s try to define this.

A registered person could be a consignee (buyer) or the consignor (seller of the goods) causing the movement of the goods or consignment using a motorized vehicle, hired or private, or by ship, train or railways. The E-way bill software would allow the registered person to generate an eway bill electronically using a common portal online.

If the consignor or consignee both are not registered, then the transporter would be the party considered as a registered person who has to generate the eway bill using the software.

In short, the consignor, the consigness and the transporter can all be registered person or parties in the completion of eway bill generation as registered parties.

The eWay Bill is applicable for cargos and goods transported via road, rail, air, or by ships.

What is Supply and what is Return?

When do you need a eWay Bill?

The eway bill generation process has two steps:

Part A

This has to be furnished by the consignor, a person who is causing movement of goods of consignment evaluated at Rs. 50,000/- or more.

Part B

Transport details that are furnished by the registered transporter carrying the goods in their vehicle.

The eWay Bill can be generated between persons and transportation companies who are ferrying goods via motor vehicles only.

Empty Cargo containers: No eWay Bill Needed

If there is no goods or cargo in the container ferried by the motor vehicle, goods companies need not generate an eWay Bill. This means that if the motor vehicle is returning from its supply destination back to its source without any goods, no eWay Bill is demanded.

The consignor or consignee himself generates the eway bill if the transportation is being done in own/hired motor vehicle or by railways, by air or by ship. Using an online portal reflects the status of Eway bill receipt if the consignee or consignor has formally accepted or declined the supply of goods as mentioned in the bill.

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