March 27, 2023

Transaction types in E-way Bill

In accordance with GST rules transporters are required to carry an eWay Bill while transferring products from one location to another. According to section 68 of the Goods and Services Tax Act read with rule 138, the person in charge of the conveyance transporting any consignment of goods with a value above fifty thousand rupees is required to carry this document. There are four types of transactions in E-way bills. These kinds vary depending on how many parties are engaged in the billing and transportation of the items. We'll discuss the types of transactions covered by E-way bills in this article.

Before going into the details let's get to know the meaning of the terms. 


The person who supplies the goods 

Dispatch from: 

The person/place from where the goods are dispatched. It can be the place from where the supplier operates from.


The person who places the order and will be making the payment.


The person/place who will be actually receiving the goods.

Regular type of Transaction: 

This is a typical or routine transaction in which the consignor/ shipper and the consignee/ recipient exchange bills and items. In other words, the products and bills are transferred straight from the consignor to the recipient.

Regular - appears when the State or location is selected in the sections:

1. Bill From and Dispatch From are the same, or

2. Bill To and Ship to are the same.

Bill-to and Ship-to Transaction

In a situation known as "Bill-to and Ship-to," the party to whom the invoice is sent differs from the person who actually receives the products or services. There are two invoices produced as a result of the transaction for use in GST returns and also to easily transfer Input tax credit.

Three parties are a part of this sort of transaction. Billing occurs between the consignor and consignee. However, the products are transferred from the consignor to the third party at the consignee's request.

Bill from and Dispatch From

This is when the State selected under Bill From and Dispatch From are different, but Bill To and Ship To are the same.

A total of three parties are involved in this kind of transaction as well. Although the products are carried by the consignor from the third party to the consignee, billing occurs between the consignor and consignee.  

Combination of Transaction Types 2 & 3

This transaction combines the previous two and involves four parties. Billing occurs between the consignor and consignee. however, at the consignee's request, the consignor moves the goods from the third party to the fourth party.

This appears when four states are involved. Different states are selected under Bill From, Dispatch From, Bill To, and Ship To. 

Frequently Asked Questions

What is the meaning of transaction type in the eWAY bill?

It reflects the type of transaction taking place between the parties are engaged in the billing and transportation of the items. There are 4 types of transaction types. Regular, Bill-to and Ship-to, Bill from and Dispatch From and combination of no. 2 & 3. 

What methods of e-way bill creation are available to the taxpayer?

E-way bills can be generated by any registered person in any of the following methods: 

1. Web-based system

2. bulk upload facility

3. SMS based facility

4. Android App

5. Site-to-Site integration

6. GSP ( Goods and Services Tax Suvidha Provider)

How to generate e-way bill, if good with one invoice is being moved in multiple vehicles simultaneously?

When the products are being carried partially or entirely knocked down, the EWB for each of these vehicles must be generated based on the delivery challans issued for that section of the consignment. Based on the information from the delivery challan and the matching vehicle number, an EWB must be generated for each consignment. 

Before sending out the first shipment, the provider must issue the whole invoice;

(b) For each of the next consignments, the supplier must produce a delivery challan referencing the invoice;

(c) Each shipment must include a properly certified copy of the invoice and copies of the relevant delivery challans;

(d) The original invoice copy must be supplied with the final shipment.


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