An E-way bill is an electronic document used to track the movement of goods valued at more than Rs. 50,000. It is issued to suppliers or individuals transporting goods and consists of two parts: Part A, which includes details such as the GSTIN of the supplier and recipient, delivery location, value of goods, HSN code, and reason for transport, and Part B, which contains information about the vehicle and transport documents.

Generating an E-way bill is mandatory when the consignment’s value exceeds Rs. 50,000. However, it is not required if the goods are transported using a non-motorized vehicle or are being moved from a port, airport, air cargo complex, or land customs station for customs clearance.

Benefits: The E-way bill is a fully digital system that removes the need for physical checks at state borders, allowing for quicker movement of goods. This improves the efficiency of transportation, reduces truck turnaround times, and lowers costs for suppliers.

Any taxable person transporting goods without the required documents (including the E-way bill) is subject to a penalty of Rs. 10,000 or the amount of tax evaded, whichever is greater. Although there are no charges for GST registration, compliance with these rules is essential to avoid penalties.