Read this blog to learn more about the state-wise threshold and e-way bill limits in India.
An Electronic Way Bill (E Way Bill limit) is a receipt or document produced by a carrier that details and instructs on the transportation of goods, including the consignor, the consignee, the origin, the destination, and the transporter, including the vehicle or rail data. For businesses, especially those that deal in regular transportation of goods, understanding the e-way bill limit is vital.
To ensure that items are transported legally, an e-way bill limit must be generated and uploaded to an official government website before any commodities can be moved.
Rule 138 of the CGST Rules, 2017 states that “information is to be submitted before the commencement of transportation of goods” and that this rule applies “whether the movement is about a supply or for purposes other than supply.”
E-Way Bill Limit
We have listed, state by state, the minimum value of the waybill limit required to issue a bill for the transportation of goods within a state:
| State | Intra State Limit (₹) | Inter-State Limit (₹) |
| Punjab | ₹1,00,000 | ₹50,000 |
| Tamil Nadu | ₹1,00,000 | ₹50,000 |
| Maharashtra | ₹1,00,000 | ₹50,000 |
| Bihar | ₹1,00,000 | ₹50,000 |
| Rajasthan | ₹1,00,000 | ₹50,000 |
| West Bengal | ₹1,00,000 | ₹50,000 |
| Jharkhand | ₹1,00,000 | ₹50,000 |
| Telangana | ₹50,000 | ₹50,000 |
| Tripura | ₹50,000 | ₹50,000 |
| Odisha | ₹50,000 | ₹50,000 |
| Uttar Pradesh | ₹50,000 | ₹50,000 |
| Uttarakhand | ₹50,000 | ₹50,000 |
| Sikkim | ₹50,000 | ₹50,000 |
| Nagaland | ₹50,000 | ₹50,000 |
| Mizoram | ₹50,000 | ₹50,000 |
| Madhya Pradesh | ₹50,000 | ₹50,000 |
| Kerela | ₹50,000 | ₹50,000 |
| Himachal Pradesh | ₹50,000 | ₹50,000 |
| Karnataka | ₹50,000 | ₹50,000 |
| Haryana | ₹50,000 | ₹50,000 |
| Chhattisgarh | ₹50,000 | ₹50,000 |
| Assam | ₹50,000 | ₹50,000 |
| Arunachal Pradesh | ₹50,000 | ₹50,000 |
| Gujarat | ₹50,000 | ₹50,000 |
| Goa | ₹50,000 | ₹50,000 |
Registered Users of the E-Way Bill Limit
Electronically on the common portal, the relocating registrant or the recipient of supply may generate the e-way bill limit in Form GST EWB 01 after furnishing information in Part B of Form Goods and Services Tax EWB 01 if the relocating registrant is acting as the consignor (i.e., seller) or the recipient of the supply is acting as the consignee in the relocating transaction (i.e., buyer). It’s important to note that for either party to initiate this process, GST registration is required. This registration ensures that all parties involved are compliant with GST regulations, which is crucial for the legality and smooth processing of such transactions.
However, the transporter is responsible for creating an e-way bill limit if the registered person commences the transportation of goods and then gives them over to the transporter without making an e-way statement.
E-way bill limits are generated by transporters based on the information provided by registered persons in Part A of Form GST EWB 01. Part B of Form GST EWB 01 is where the registered person submits information about the carrier.
Benefits to the E-Way Bills
- The installation of an e-way bill limit has helped cut the time spent waiting at interstate checkpoints.
- As a result, logistical costs are reduced significantly.
- The charging process is now much more precise.
- This bill will make it easier for goods to move quickly within and between states.
- There have been no hiccups in the delivery of products.
When Should An E-Way Bill Be Issued?
The issuance of an e-Way bill is required under the following circumstances:
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Value Threshold:
An e-Way bill must be generated when there is a movement of goods in a vehicle or conveyance, and the value of the goods exceeds Rs. 50,000. This value threshold applies to each invoice or the aggregate value of all invoices in a single vehicle or conveyance.
2. Types of Movements Requiring e-Way Bill:
- “About a ‘supply,” This includes the movement of goods for a consideration (payment) in the course of business, whether it is a sale, transfer, or barter/exchange.
- For reasons other than a ‘supply’ (e.g., return of goods).
- Due to inward ‘supply’ from an unregistered person.
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Definition of ‘Supply’:
- A supply made for a consideration (payment) in the course of business.
- A supply made for a consideration (payment) that may not be in the course of business.
- A supply without consideration (without payment).
In simpler terms, ‘supply’ encompasses various transactions, including sales, transfers, and barter/exchange, where goods are moved for consideration or without consideration.
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Mandatory eWay Bill for Specified Goods:
For certain specified goods, it is mandatory to generate an eWay bill even if the value of the consignment is less than Rs. 50,000. These include:
- Interstate movement of goods by the Principal to the Job-worker by the Principal/registered Job-worker.
- Inter-State transport of handicraft goods by a dealer exempted from GST registration.
Who Should Generate an E-Way Bill?
The entities responsible for eWay Bill generation, include:
Registered Person:
- An eWay bill must be generated by a registered person when there is a movement of goods exceeding Rs 50,000 in value to or from them.
- Both the registered person and the transporter have the option to generate and carry an eWay bill even if the value of the goods is below Rs 50,000.
Unregistered Persons:
- Unregistered persons are also obligated to generate an e-Way Bill.
- In the case of a supply made by an unregistered person to a registered person, the recipient must ensure compliance with all requirements as if they were the supplier.
Transporters:
- Transporters responsible for the movement of goods by road, air, rail, etc., need to generate an e-Way Bill if the supplier has not already done so.
- However, the generation of the Eway bill by transporters is not required if the value of each consignment in the conveyance is less than or equal to Rs 50,000, but the aggregate value of all consignments together exceeds Rs 50,000.
- For this purpose, a document refers to a Tax Invoice, Delivery Challan, or Bill of Supply.
Unregistered Transporters:
- Unregistered transporters can obtain a Transporter ID by enrolling on the e-way bill portal, following which they can generate an e-way bill limit.
Note: If a transporter is carrying multiple consignments in a single conveyance, they can utilize Form GST EWB-02 to create a consolidated e-way bill. This involves providing the e-way bill numbers of each consignment. In cases where neither the consignor nor the consignee has generated an e-way bill, the transporter can do so by filling out PART A of FORM GST EWB-01 based on the provided invoice/bill of supply/delivery challan.
Input on Form GST EWB 01 Completion
In Column A.6, taxpayers should enter only two digits for the HSN Code if their revenue was less than Rs. 5 crore in the past financial year and four digits if it was more than Rs. 5 crore.
The number on the goods receipt, railway receipt, airway bill, or bill of lading is the same on the transport document.
Postal or ZIP Code is the standard definition of Delivery Address.
The following are legitimate reasons to take a car: For one’s use or the consumption of others, as in Supply, Export/Import, Contract Manufacturing, SKD/CKD, Unknown Recipient, Live Sales, Sales Return, and Trade Shows.
An Unregistered Seller
Suppose a person not registered for GST uses their vehicle, a rented vehicle, or a transporter to move goods. In that case, either the unregistered person or the transporter is responsible for creating the e-way bill.
So, even if the transporter is not registered, the individual transporting the goods must either create the e-way bill himself or have the transporter do it on his behalf.
To make an e-way bill, visit the site and fill out Form GST EWB-01. An e-way invoice can be generated through the GST Portal even if the user is not registered for GST: https://reg.gst.gov.in/registration/
An electronic way bill must be created whenever a transaction involves a non-registered vendor and a registered purchaser.
Any time an unregistered person transfers ownership of goods to a registered person who is already known at the time the movement of goods commences, the registered person is deemed to be the cause of action of goods.
The registered individual or carrier is responsible for completing the e-way bill.
Jobs of a Transporter
Transporters are responsible for generating an e-way bill from the consignment’s invoice, bill of supply, or delivery challan if the value of the shipment exceeds Rs. 50,000 and neither the seller nor the buyer has generated one.
To move the goods, the transporter must update the e-way bill on the site by changing the vehicle details.
Before goods can be moved, the transporter must generate a consolidated e-way bill in Form GST EWB 02 on the GST Website and electronically indicate the serial number of each individually developed e-way statement in respect of each such consignment on the same platform.
Electronic Way Bill for Shipments via Airplane, Train, or Boat
Before sending anything by train, plane, or boat, the registered individual must generate an e-way bill (the supplier or the recipient). This e-way bill’s information must be filed in Section B of Form GST EWB 01 before or after the shipment has entered transit.
The railroads will not release your shipment for delivery unless you provide the required waybill.
An e-Way Bill is necessary if products are transported via an e-commerce site or a courier service.
If the Goods to be delivered are supplied by an e-commerce operator or a courier service, and if the third party has received consent from the consignor, the third party may provide the information in Part A of Form GST EWB 01.
As a result, there will be fewer loopholes to avoid paying taxes. Tally users keen on enhancing their management skills will find the Biz Analyst app an invaluable companion. Bookkeeping, ledger creation, and data entry are all essential tasks that will help you keep your business running smoothly.
Implications of State-Specific E-Waybill Thresholds
State-specific variations in e-way bill thresholds have notable implications on the movement of goods and the overall efficiency of logistics. These variations have enhanced the effectiveness of goods transportation across different regions. While all states and union territories must adhere to general e-way bill regulations, these thresholds allow certain states to implement provisions and leniencies tailored to their specific needs. This flexibility has positively influenced taxation regulations nationwide, promoting smoother operations and compliance. However, the autonomy granted to some states ensures that the process remains adaptable and responsive to local demands.
Conclusion
Hope you get to know about the e-way bill limit. There is a significant advantage to the government that the e-way bill provides. This has the potential to unify the Indian market by doing away with the myriad of state-specific inspections that are currently required. Because of the efficiency gained through e-way bills, customers’ packages arrive much more quickly.
A seller or buyer of goods is expected to update the outbound sales return with any modifications made to the related electronic bill. In case of any confusion, contact Vakilsearch.
FAQs
What is the e-way bill limit in 2024?
As of 2024, the e-way bill limit is set at ₹ 50,000 for the movement of goods. This threshold applies to both interstate and intrastate transportation, meaning that any consignment of goods valued at ₹ 50,000 or more requires an e-way bill.
What is the interstate threshold limit?
The interstate threshold limit for the mandatory generation of an e-way bill is ₹ 50,000. This means that for any consignment of goods worth ₹ 50,000 or more moving between states, an e-way bill must be generated and carried.
Is the eWay Bill compulsory for interstate movement?
Yes, the e-way bill is compulsory for interstate movement of goods valued at ₹ 50,000 or more. This requirement ensures that goods transported between states are properly documented and taxed, facilitating smooth and compliant transportation.
What is the distance limit for a waybill?
The distance limit for an e-way bill is typically 100 kilometers per day from the point of origin. However, the validity period of the e-way bill can vary based on the type of cargo and the total distance to be covered, ensuring adequate time for the consignment to reach its destination.
What is the difference between interstate and intrastate GST?
Interstate GST (IGST) is applied to goods and services moving between different states, while intrastate GST (CGST and SGST) is applied within the same state. In interstate transactions, IGST is collected by the central government, whereas in intrastate transactions, CGST goes to the central government and SGST goes to the state government.
