The e-Way Bill system is one of the important compliance mechanisms in place under the Goods and Services Tax (GST) in India. It is a mechanism that provides documentation of goods being transported from one area to another, while also making it easy to track goods in transit. This helps to curb tax evasion in some cases.
Revenue authorities require the Transporter ID when generating an e-Way Bill. Businesses will need to fill out information like the invoice number, value of the goods, registration or identification number of the vehicle, and the transporter number when they generate an e-way bill.
In this blog, we will cover what Transporter ID is, the reasons it is needed, who needs a Transporter ID, how to generate one, and also provide the proper way to use a Transporter ID when creating an e-way bill.
What is an E-Way Bill?
Prior to learning about the Transporter ID, let us review what an e-way bill is.
An e-way bill (Electronic Way Bill) is a document that is created electronically on the GST e-way bill portal (https://ewaybillgst.gov.in) when goods costing more than ₹50,000 are transported:
- From one location to another location, either within that same state or outside that state; and,
- In any mode of transportation – by road, rail, air or ship.
It is a kind of digital permit that ensures that the goods that are being transported are tax-compliant and that GST has been accounted for correctly.
What is a Transporter ID?
A Transporter ID is a unique 15 digit identification number that is assigned to a transporter or logistics company who is not registered under GST but needs to generate or update e-way bills for their clients.
It allows unregistered transporters to access the e-way bill system and perform compliance functions, such as –
- Updating vehicle details,
- Generating Part B of the e-way bill, and
- Assigning e-way bills to vehicles or transport chains.
In other words, it is a way for transporters who are not registered for GST to participate in the GST compliance process without having a full GSTIN.
What is the Purpose of a Transporter ID?
The e-way bill system is designed to track transport and produce information. It creates two parts:
- Part A – which has details of the good, value of good, the HSN code, the invoice, and the supplier/recipient’s GSTIN.
- Part B – which has the vehicle / and/or transport document details for the movement of those goods.
If a supplier or a recipient (who is registered under the GST) hires a transporter who is not registered under the GST, the transporter must be identified in the system. This can be accomplished if the supplier or recipient must use a Transporter ID instead of the GSTIN associated with the report.
It is used for the following purposes:
- To assign e-way bills to transporters
- To TRACK the movement of goods in transport
- To update the vehicle details once the goods have been switched to another truck or another place
Without a Valid Transporter ID, unregistered transporters are unable to either successfully update and/or manage the e-way bill, leaving them unable to legally move the goods that are environmentally under the transporter’s custody.
Who Requires a Transporter ID?
A Transporter ID is needed by:
- Transporters or Logistics Providers who are not registered under GST.
If a transporter is not GST registered (possibly because their turnover is below the threshold or they are exempt), and are transporting goods, they must obtain a Transporter ID.
- Fleet Owners or Truck Operators Engaged in Multiple Businesses.
Even small truck operators who are transporting goods for more than one business must obtain a Transporter ID to be entered into the e-way bill system for each transport.
- Agents or Warehousing Companies that are managing the transportation of goods.
If goods are stored or shipped with the help of third parties who are managing the logistics for transportation, the third party would need a Transporter ID.
Transporter ID Format
The Transporter ID is a 15-digit alphanumeric number like GSTIN.
- The first two digits are the state code.
- The next ten characters are based on the transporter’s PAN (Permanent Account Number).
- The last three digits are system-generated.
For example – 27ABCDE1234F1Z5 (27 = Maharashtra)
How to Generate a Transporter ID?
Generating a Transporter ID is an uncomplicated process and can be done online via the e-way bill portal. Follow the steps provided below to generate a Transporter ID.
Step-by-Step Process –
1. Open the E-way Bill Portal
Go to https://ewaybillgst.gov.in.
2. Click on ‘Enrollment for Transporters’
On the home page, click “Enrollment for Transporters” located under the registration menu.
3. Fill in Business Details
Fill in all the relevant information, which includes:
- Legal name of the transporter
- Trade name (if applicable)
- PAN information
- Type of business (proprietor, partnership, etc.)
- Address and contact information
4. Fill in ID Proof Details
Make sure to upload any required ID proof and address documents.
5. Verification via OTP
Once all your details have been entered, you will receive an OTP on the registered mobile number to verify the information.
6. Generate and Save Transporter ID
Once your details have been submitted, the system will generate a 15-digit Transporter ID, which must be stored for all future references.
How to Use the Transporter ID in the E-Way Bill System?
You can use the Transporter ID for the e-way bill system in various ways:
- Assigning Transporter to E-Way Bill: A supplier or recipient can assign the e-way bill to a transporter by entering the Transporter ID.
- Updating Vehicle Details (Part B): If a transporter uses their Transporter ID, they can update vehicle details during transit if the goods are shifted from one truck to another truck.
- Managing Consolidated E-Way Bills: For multiple consignments being carried in one vehicle, the transporter can generate consolidated e-way bills using the Transporter ID.
- Assignment of Goods from one Vehicle to Another: If the goods are transferred from one vehicle to another vehicle, the transporter can log in using the Transporter ID, and subsequently update the vehicle number with the assigned e-way bill (after updating the vehicle) and continue with the delivery.
Conclusion
The use of a Transporter ID is a critical connection between unregistered transporters and the GST e-way bill system. This helps enable legal tracking of goods that are transported throughout India, updates vehicle information, and keeps compliance intact with every responsibility for every step of movement.
If you’re a transporter or business that hires one, then ensure you have an active Transporter ID that you’re using correctly for e-way bill operations. Having a Transporter ID keeps you legally compliant in transportation, helps prevent penalties, and creates a transparent supply chain.
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