Definition
E-Way Bill
An e-way bill is an electronic document required for the movement of goods above a specified value, generated on the GST portal before transport begins.
To move consignments of goods beyond a threshold value, businesses must generate an e-way bill capturing details of the supplier, recipient, goods and transporter. It carries a unique number that tax officers can verify during transit, curbing the movement of unaccounted goods.
The e-way bill links the physical movement of goods to the GST return system, making it harder to under-report sales. It has a validity period tied to the distance to be covered, after which it must be extended, and it is a key tool in GST's anti-evasion architecture.
Related terms
- HSN CodeThe HSN code is an internationally standardised system of numbers used to classify goods, adopted under GST to determine the applicable tax rate.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.