E-Way Bills Without GSTIN: A Game-Changer for Unregistered Persons
Picture this: A skilled artisan from a remote village, meticulously crafting hand-embroidered textiles and other handcrafted goods. A boutique in another state wishes to purchase these unique creations, but neither the artisan nor the boutique is registered under GST. How can they legally transport the goods across state lines without violating GST regulations?
Earlier, in such cases, either the transporter had to generate the E-way Bill, or one of the parties had to obtain GST registration—often unnecessarily—just to comply with the system. Recognizing this challenge, the government amended Rule 138 of the CGST Rules, allowing unregistered persons to generate E-way bills. At the heart of this change is Form GST ENR-03, which enables unregistered persons to generate E-way bills without requiring GST registration. This amendment introduced a streamlined mechanism, ensuring smoother trade and regulatory compliance.
Regulatory Framework for E-Way Bill Generation by Unregistered Persons
E-Way Bill Requirement Under Rule 138
Under Rule 138 of the CGST Rules, an E-way bill is mandatory for the movement of goods if the consignment value exceeds Rs. 50,000.Typically, the responsibility for E-way bill generation lies with the registered person initiating the movement, usually the supplier. However, if the supplier is unregistered but the recipient is registered, the recipient must generate the E-way bill.
However, a major gap in the system arose when both the supplier and the recipient were unregistered.
Who would generate the E-way bill in such cases?
Would the supplier be forced to obtain GST registration despite being ineligible?
Previously, the only solutions were:
1. Either party had to register under GST solely for the purpose of E-way bill generation, or
2. The transporter had to generate the E-way bill.
In practice, the transporter typically generates the E-Way Bill (EWB) using their ID where neither the supplier nor the recipient is registered. However, if the transporter was unwilling to do so, one of the parties involved in the transaction was forced to register under GST solely for the purpose of generating the EWB due to the portal’s requirements. This caused unnecessary compliance burdens.
Recognizing this challenge, the government amended the Rule 138 in 2024, allowing unregistered individuals to generate E-way bills. This change has now been implemented on the EWB portal, introducing a new feature that enables unregistered persons to generate EWB without mandatory GST registration.
This amendment is particularly beneficial for small businesses that do not exceed the GST registration threshold. Previously, transporters were often reluctant to generate an E-way bill when both the buyer and seller were unregistered, creating logistical challenges. Now, this will no longer be an issue, making inter-state trade easier for unregistered businesses.
Mandatory E-Way Bill for Handcrafted Goods
Adding another layer of complexity, the 4th proviso to sub-rule (1) of Rule 138 makes it mandatory for unregistered persons supplying notified handicraft goods inter-state to generate an E-way bill—even if the consignment value is below Rs. 50,000. This further reinforced the need for a structured mechanism enabling unregistered persons to generate E-way bills.
A Game-Changer: 4th Proviso to Rule 138(3)
To resolve these challenges, Notification No. 12/2024 – Central Tax dated 10.07.2024, inserted the 4th proviso to sub-rule (3) of Rule 138, which states:
“Provided also that an unregistered person required to generate e-way bill in Form GST EWB-01 in terms of the fourth proviso to sub-rule (1)or an unregistered person opting to generate e-way bill in Form GST EWB-01, on the common portal, shall submit the details electronically on the common portal in FORM GST ENR- 03 either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details so furnished, a unique enrolment number shall be generated and communicated to the said person.”
This amendment legally enables unregistered persons to generate E-way bills either online or through a facilitation center. The key beneficiaries include:
While the amendment provided legal clarity, its implementation required a defined procedure. This led to the issuance of an advisory detailing the enrolment and E-way bill generation process.
FORM GST ENR-03: Enrolment for E-Way Bill Generation
To operationalize this change, an advisory issued on February 15, 2025, outlined the procedure for unregistered persons to generate E-way bills. The advisory introduced FORM GST ENR-03, allowing unregistered suppliers and recipients to enroll on the EWB portal.
Key Feature of the Advisory
A new feature in the E-way Bill (EWB) system enables unregistered person to enroll using FORM GST ENR-03. This feature became effective from February 11, 2025, aligning with Notification No. 12/2024 – Central Tax, dated July 10, 2024.
Step-by-Step Process for Enrolment & E-Way Bill Generation
1. Accessing FORM GST ENR-03:
An Unregistered Person (URP) can enroll using Form ENR-03.
The option is available under the "Registration" tab in the main menu of the EWB portal.
2. Filling Out the ENR-03 Form:
The enrolment screen will be displayed upon selecting the option.
The applicant must:
✓ Select their State and enter PAN details (which will be verified).
✓ Choose the type of enrolment (Supplier, Recipient, or Transporter).
✓ Provide address details.
✓ Enter a mobile number, which will be verified via OTP.
3. Creating Login Credentials:
The user must create a username, check its availability, and set a password before submitting the details.
Upon successful submission, a 15-character Enrolment ID will be generated, and an acknowledgment will be displayed.
This Enrolment ID serves as an alternative to GSTIN for E-way bill generation
4. Generating an e-Way Bill:
The enrolled URP can log in to the EWB portal using the registered credentials.
By selecting the ‘Generate New’ option, the Enrolment ID will be auto-populated as the Supplier/Recipient.
Essential details, including the invoice number, goods description, vehicle number, distance, and transporter information, must be provided before proceeding.
After submitting the details, the e-Way Bill will be generated. It can then be downloaded and printed for transportation compliance.
Benefits of This Amendment
This regulatory change brings several advantages for unregistered businesses and traders:
✓ No Need for Unnecessary GST Registration: Unregistered persons can now generate E-way bills without obtaining GST registration solely for compliance.
✓ Reduces Logistical Challenges: Transporters were often reluctant to generate EWBs for transactions involving unregistered parties. This amendment removes that bottleneck.
✓ Facilitates Small Business Growth: Small traders and artisans can now move goods across states without unnecessary tax burdens.
✓ Boost for Handicraft and Traditional Trade: Unregistered suppliers dealing in notified handicraft goods benefit significantly from this change.
✓ Enhances Ease of Doing Business: This change aligns with the government’s broader agenda of simplifying compliance for small businesses.
✓ Enhanced Transparency: The feature ensures that goods transported by unregistered dealers are properly documented, reducing tax evasion.
✓ Simplified Compliance: Unregistered dealers can now generate E-way bills seamlessly without requiring a GSTIN.
Conclusion
The introduction of E-way bill generation for unregistered persons marks a significant step toward easing compliance burdens under GST. By allowing unregistered person to enroll via FORM GST ENR-03, this amendment eliminates the need for unnecessary GST registration, facilitates smoother trade, and enhances transparency. Small businesses, artisans, and traders can now expand their reach without facing logistical hurdles, aligning with the broader goal of promoting ease of doing business.
Disclaimer: The information given in this article is solely for purpose of understanding the law. It is completely based on the interpretation of the author and cannot be constituted as a legal advise, the author of this article and Lawcrux team is not responsible for any legal issues if arises on the basis of the interpretation given above.