India: E-way bill requires Pin code

November 19, 2018

With the onset of the novel tax regime the application of the value addition at each stage, the Goods and Service Tax (hereinafter referred to as the “GST”) is the single uniform tax process which subsumed a number of previous taxes such as excise duty, service tax, value added tax, sales tax, octroi, luxury tax, etc. From its inception, the traders are trying to get acquainted with the new taxation system. The Government has been allowing modifications and amendments brought thereon for facilitating the levying and collection of the tax.

Advent of digitalization has revolutionized our lives in numerous ways including providing vital information, efficient communication, platform for commercial activities and banking operations, maintenance of records, etc. The new tax mechanism relies on the online medium for its smooth functioning.

E-way bill

The enforcement of the GST laws in the country promulgated the requirement of e-way bill for the transfer of goods across the country. An e-way bill is an electronically generated document/number to be carried by the person-in-charge of conveyance. A GST registered person cannot transport goods in a vehicle whose value exceeds INR 50,000 without an e-way bill.

Pin Code necessary

GST Network is a not for profit company, it is established under the provisions of the Companies Act, 2013 which has been set up primarily to provide a user interface shared with the Government in order to capture, process and exchange of information amongst the stakeholders with a view to ensure effective enforcement of GST laws.

Tightening of the norms for issuance of e-way bill, the GST Network has made it mandatory for businesses and transporters to mention Postal Index Number (hereinafter referred to as the “PIN”) codes of places of loading and unloading of consignments.

Quoting of PIN codes will help in calculating the correct distance and determine the validity of the e-way bill. The validity of the e-way bill depends upon the distance mentioned by the businesses which poses the challenge of tax evasion by transporters making multiple trips on the basis of same e-way bill.

The reformation in the GST aims to smoothen the process of e- way bill generation thereby easing the system of implementation and recovery of tax applicable.

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