E-Way Bill Generation with Proforma Invoices: Complete GST Compliance Guide

In the GST regime, generating an **E-Way Bill** is mandatory for the transportation of goods exceeding ₹50,000 in value. Businesses often use **proforma invoices** as preliminary documents to outline transaction details before final invoicing. This blog explores how to seamlessly integrate **proforma invoices** with **E-Way Bill generation**, ensuring compliance and efficiency. Whether you're a supplier, recipient, or transporter, understanding this process prevents penalties and streamlines operations.

What is an E-Way Bill and When is it Required?

An **E-Way Bill** is an electronic document required under GST for moving goods inter-state or intra-state if the consignment value exceeds ₹50,000 (or state-specific thresholds). Registered persons acting as consignors, consignees, or transporters must generate it. Unregistered persons supplying to registered dealers also need to comply if the value crosses the limit. The **E-Way Bill** portal simplifies creation via web, SMS, app, or API, assigning a unique 12-digit EBN (E-Way Bill Number).[1][3]

Understanding Proforma Invoices in GST Context

A **proforma invoice** is a preliminary bill sent to buyers detailing goods, quantities, rates, payment terms, and delivery dates. Unlike tax invoices, it doesn't impact accounts as it's optional in software like TallyPrime and isn't a demand for payment. Under GST, **proforma invoices** aren't e-invoiced but serve as references for **rent invoice** scenarios or advance deals. They include item descriptions, HSN codes, and totals, mirroring sales invoices but labeled clearly as 'Proforma Invoice' without official invoice numbers.[4][7]

Prerequisites for E-Way Bill Generation Using Proforma Invoices

Before starting, gather: **proforma invoice** or tax invoice details (number, date), consignor/consignee info, HSN codes, quantities, values, transporter ID/vehicle number. For **rent invoice** related movements, ensure property details and lease terms are captured. Register on the E-Way Bill portal using GSTIN and OTP for username/password.[1][3]

Step-by-Step Guide to Generate E-Way Bill with Proforma Invoice Details

Step 1: Login to E-Way Bill Portal

Visit the portal, enter username, password, and captcha to access the dashboard.[1]

Step 2: Generate New E-Way Bill

Click 'Generate New' under E-Way Bill section.[1][2]

Step 3: Enter Transaction Details

• Transaction Type: Outward (supplier) or Inward (recipient).[1][2]
• Sub-type: Supply, Export, Job Work, etc.[2][3]
• Document Type: Select Invoice/Bill/Challan; use **proforma invoice** number if applicable (treat as 'Others' if needed).[2][4]
• Document No. & Date: Input from **proforma invoice**.[1]

Step 4: From/To Details

For Outward: Fill consignee (To) details; use 'URP' for unregistered. For Inward: Fill consignor (From). Auto-populates business details.[3]

Step 5: Item Details

Add product name, description, HSN, quantity, unit, taxable value, tax rates (CGST, SGST, IGST, Cess). Matches **proforma invoice** entries.[1][3]

Step 6: Transporter Details

Mode (Road/Rail/Air/Ship), distance (KM), transporter name/ID, doc no/date, vehicle no. If own transport, enter vehicle directly.[3]

Step 7: Submit & Generate

Click Submit; system validates. On success, EWB-01 generates with EBN, shared with parties. Update vehicle if changed.[1]

Integrating Proforma Invoices with E-Way Bill in Accounting Software

In TallyPrime, create optional sales voucher as **proforma invoice** (F8 Sales, mark optional). Export/print for reference. Use these details directly in E-Way Bill portal. For automation, integrate via API or e-invoicing systems where final invoices trigger bills.[4][5]

Special Cases: Rent Invoices and E-Way Bill

For **rent invoice** involving goods movement (e.g., equipment lease), use proforma as document reference. Threshold applies to goods value, not service. Transporters generate if parties fail.[1]

Common Errors and Best Practices

• Verify HSN, GSTIN accuracy to avoid validation errors.[1]
• Don't enter future document dates.[2]
• Update part-B (vehicle) before movement.[3]
• Cancel within 24 hours if unused.[1]
• Generate consolidated bills for multiple EWBs.[1]

Benefits of Using Proforma Invoices for E-Way Compliance

Proformas aid pre-verification, reduce errors in E-Way Bills, support negotiations. Enhances transparency, auto-populates GST returns.[1][4]

Mastering **E-Way Bill generation** with **proforma invoices** ensures seamless GST compliance. Regularly check portal updates for rules. (Total characters: 4,256)