An E-way Bill is an electronic document required for the movement of goods under the goods and services tax system, used to track shipments and ensure tax compliance.
How It Works:
- The supplier generates an E-way Bill online before dispatch.
- Details of goods, transporter, and destination are entered.
- A unique E-way Bill number is generated.
- The document accompanies the shipment.
- Authorities verify it during transit if required.
Benefits:
- Ensures compliance with tax regulations
- Enables real time tracking of goods movement
- Reduces tax evasion
- Simplifies logistics documentation
Example:
A supplier transporting goods worth more than the prescribed limit generates an E-way Bill before shipment.