Exporting products from India requires navigating an array of regulations stipulated by customs authorities, the GST Council, shipping ministries, and more. One key document that has now been made mandatory for export shipments is the e-way bill.
So as an exporter, do you need to generate e-way bills? What exactly are the requirements when goods destined for international markets leave your factory premises en route to the gateway port?
Let’s examine what the e-way bill regulations entail for your export transactions and when they apply.
The e-way bill mechanism was introduced for tracing the movement of goods exceeding INR 50,000 in value across state borders. The intent is to ensure tax compliance and prevent black marketing. Consignments are tracked until receipt by the recipient.
This system covers exports as well and comes into play once goods leave the exporter’s warehouse. However, exemptions also exist in certain cases.
In this article, we simplify the largely transaction-based applicability guidelines. Whether you run a MSME manufacturing set-up or a large export house, insights shared here will help determine when e-way bills need generation as you plan dispatches abroad.
Stay tuned as we discuss key topics like:
Therefore, the e-way bill integrates with other export paperwork and facilitates cross-verification. The absence of an e-way bill can lead to containers being denied loading on vessels bound for international shipping.
Hence, the e-way bill remains a non-negotiable component of export documentation.
Also Read: Documentation And Invoicing Requirements For Exports: Place Of Supply Considerations
- Scenarios where exports necessitate e-way bills
- Situations where exceptions can be claimed
- E-way bill generation process
- Validity determination
- documentation to carry
- FAQs and more
Export E-waybill Requirements
The e-way bill system was introduced under GST to track the inter-state and intra-state movement of goods valued over Rs. 50,000. It is mandated that an e-way bill be generated prior to the commencement of the transport of the goods. This requirement applies to exports as well. When goods meant for export are transported from the exporter’s premises to the port, airport, or land customs station, an e-way bill needs to be generated. However, once the goods are inside the customs area, any further movement (like from ICD to gateway port) does not require an e-way bill. So to summarize:- E-way bill mandated for transportation from exporter’s premises to customs port or station
- No e-way bill is required within the customs area.
Is an e-waybill necessary for exports?
Given that exports need to fulfill stringent documentation requirements like shipping bills, packing lists, etc., exporters may question the need for other compliance in the form of e-way bills. However, the e-way bill still serves some important purposes:- Confirmation of dispatch: The very generation of an e-way bill acts as proof that the goods have indeed been shipped out for export.
- Prevents revenue leakage: Without e-way bills, ensuring exports are genuine becomes difficult. E-way bills discourage the black marketing of exports within the country.
- Input tax credit eligibility: Only if an e-way bill is generated will the exporter be eligible to claim input tax credit for GST paid on export goods.
- Smooth clearances: Customs authorities can verify the e-way bill for exports to ensure compliance. This facilitates faster clearances and assessments.
Generating an e-waybill for export compliance
The steps to generate an e-way bill for exports are outlined below:-
Access the E-way bill portal.
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Enter business details.
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Specify dispatch and delivery details.
- Enter the address of the exporter’s premises under ‘Dispatch From’
- For ‘Ship To’, enter code 999999 and select ‘Other Country’.
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Input transporter info.
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Select ‘Export’ supply type.
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Input document details.
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Submit details.
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Print the e-waybill.
Export Documentation: E-waybill Need
There are a wide range of export shipping and customs documents that need to be prepared, like:- Shipping Bill
- Commercial Invoice
- Packing List
- Bill of Lading
- Certificate of Origin, and so on.
| Document | E-way bill relevance |
| Shipping Bill | Details of the shipping bill, like the number and date, need to be furnished while generating the e-way bill. |
| Invoice | The tax invoice details need to match those provided in the e-way bill. |
| Packing List | It helps verify actual goods against those specified in the tax invoice used for making the e-way bill. |
| Bill of Lading | Transporter details like the LR number entered in the e-way bill should match the bill of lading. |
Export Regulations and E-Waybill Mandate
Exports need to fulfill several regulatory requirements governed by customs, GST, foreign trade policies, and shipping norms. The e-way bill mandate is driven chiefly through GST rules enforced by the tax authorities. Some governing provisions related to e-way bills include:- As per Rule 138 of the CGST Rules, e-way bill generation is mandated for the movement of goods exceeding Rs. 50,000.
- 138(14) specifically states that even for exports, the e-way bill requirements would apply.
- Sub-rule 60 of Rule 138 outlines situations where exemptions can be availed of, like for port-bound movement of goods.
Requirements for E-Waybill in Export Transactions
When navigating export e-way bill rules, several questions around compliance requirements tend to emerge. What details need to be captured? How do I determine the validity period? Can transporters assume any filing obligations themselves? Let’s examine some key aspects concerning mandatory documentation during export shipments. With a wide array of export goods classifications, parameters like value, pre-import conditions, and area-based exemptions impact when e-way bills need generation. For example, no e-way bills are required for goods like exports from SEZs or international transhipment cargo.-
Distance Calculations
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Transporter Role
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Multi-Shiftments
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Air Freight Scenario
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Onus for Compliance
Conclusion
To conclude, in addition to export shipping and customs documentation, generating an e-way bill has also become essential. It is mandated that e-way bills accompany export goods from the supplier’s premises until the customs frontier. While documentary compliance seems cumbersome, the e-way bill plugs revenue leakage, authenticates the movement of goods, and provides legitimacy for eligible input tax credits. The government is also easing processes, bringing in options like the bulk generation facility and consolidated e-way bills. Exporters also need to maintain adept familiarity with GST rules concerning e-waybill applicability. Leveraging the functionalities available to generate accurate bills in line with regulations can make compliance easier. With some prudence around documentation, genuine exporters have little to be concerned about.Frequently Asked Questions
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Is an e-way bill required if the goods supplied involve merchant trade exports?
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Can I generate the e-way bill after goods reach the port?
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Do SEZ units exporting goods require an e-way bill?
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As an exporter, how do I transport goods from the factory to the customs warehouse?
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Can courier-shipping parcels meant for export also issue e-way bills if they are above Rs. 50,000?
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How long do exporters need to retain the e-way bill?
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Who generates the e-way bill if the exporter sells on a CIF or C&F basis?
Exporting goods? Learn when you’re required to generate an e-way bill under GST rules.
