E-Way Bill
E-Way Bill
An e-way bill is a mandatory electronic document that must be generated before transporting goods valued above Rs. 50,000 within or between states in India. It is governed by Section 68 of the CGST Act 2017, read with Rule 138 of the CGST Rules 2017. The e-way bill acts as a digital transit permit. It contains details of the goods being transported, the supplier, the recipient, and the transporter. Tax officers can intercept any vehicle in transit and verify the e-way bill. If goods are moved without a valid e-way bill when one is required, the goods and vehicle can be detained and a penalty imposed. The e-way bill must be generated on the government portal at ewaybill.nic.in before the goods leave the supplier's premises.
Quick reference
| Governed by | Section 68 CGST Act 2017, Rule 138 CGST Rules 2017 |
| Portal | ewaybill.nic.in or ewaybill2.gst.gov.in (from July 2025) |
| Mandatory threshold | Goods valued above Rs. 50,000 per consignment |
| Applies to | Inter-state and intra-state movement of taxable goods |
| Generated by | Supplier, recipient, or transporter |
| Unique identifier | E-Way Bill Number (EBN) |
| Validity | 1 day per 200 km for regular cargo |
| Part A | Consignment details (goods, parties, invoice) |
| Part B | Transport details (vehicle number, mode) |
| Cancellation window | Within 24 hours of generation if goods not moved |
| Penalty for non-compliance | Rs. 10,000 or tax amount evaded, whichever is higher |
How an e-way bill works
Here is how an e-way bill is generated and used in a typical goods movement:
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The supplier prepares to dispatch goods. A textile manufacturer in Surat is dispatching fabric rolls worth Rs. 1,20,000 to a buyer in Mumbai. Since the value exceeds Rs. 50,000 and it is an inter-state movement, an e-way bill is mandatory.
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Part A is filled on the portal. The supplier logs into ewaybill.nic.in and fills Part A of Form GST EWB-01. This includes the buyer's GSTIN, place of delivery, invoice number and date, value of goods, HSN code, and the reason for transport.
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Part B is filled with transport details. The supplier adds the vehicle number, mode of transport, transporter ID, and approximate distance to complete Part B. If the transporter is entering the details, they do so before the goods depart.
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A unique E-Way Bill Number (EBN) is generated. The portal generates a unique EBN which is shared with the supplier, recipient, and transporter. The validity clock starts from the time Part B is first entered.
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The truck travels with the e-way bill. The transporter must carry either a printed copy of the e-way bill or the EBN on their phone. Tax officers at checkpoints can scan the QR code or check the EBN to verify the consignment.
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The buyer accepts or rejects within 72 hours. The recipient can accept or reject the e-way bill on the portal within 72 hours. If no action is taken within 72 hours, the e-way bill is deemed accepted.
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For e-invoice businesses, Part A is auto-filled. If the supplier is covered under the e-invoicing mandate, the IRP automatically sends Part A details to the e-way bill portal, eliminating double entry.
E-way bill example for Indian businesses
Ravi runs a furniture trading business in Chennai. He ships 15 wooden chairs worth Rs. 75,000 to a hotel chain in Bengaluru. Distance: 350 km.
- Threshold: Rs. 75,000 is above Rs. 50,000. E-way bill is mandatory for this inter-state movement.
- Validity calculation: 350 km at 1 day per 200 km = 2 days (first 200 km = 1 day, remaining 150 km rounded up = 1 more day). Total validity: 2 days from the time Part B is entered.
- Ravi generates the e-way bill before the truck leaves on Monday morning at 9 AM. Validity expires at midnight on Wednesday.
- The truck arrives Tuesday afternoon. The e-way bill is still valid. The hotel accepts the consignment on the portal. Transaction complete.
If the truck had broken down and could not complete the journey before Wednesday midnight, Ravi's transporter can extend the e-way bill up to 8 hours before or 8 hours after the expiry time.
Who must generate an e-way bill
Registered supplier: Primarily responsible. Must generate the e-way bill before goods leave their premises when the consignment value exceeds Rs. 50,000.
Registered recipient: If the supplier has not generated the e-way bill, the recipient can generate it. In cases where an unregistered supplier is selling to a registered recipient, the registered recipient must generate the e-way bill as if they were the supplier.
Transporter: If neither the supplier nor recipient has generated the e-way bill, the transporter must generate it before moving the goods. Transporters carrying multiple consignments in one vehicle can generate a consolidated e-way bill using Form GST EWB-02.
Handicraft dealers: Even if exempt from GST registration, a dealer transporting handicraft goods inter-state must generate an e-way bill regardless of the consignment value.
E-commerce operators and courier agencies: Can generate Part A of the e-way bill on behalf of the consignor if authorised to do so.
Part A and Part B explained
An e-way bill has two distinct parts, both required for a valid e-way bill:
Part A — Consignment details
Part A covers what is being moved and who is involved. It includes:
- GSTIN of the supplier and recipient
- Place of delivery (PIN code)
- Invoice or delivery challan number and date
- Value of goods
- HSN code of the primary goods
- Reason for transport (supply, job work, stock transfer, return, etc.)
Part A can be filled by the supplier, recipient, transporter, or e-commerce operator. Once filled, a unique number is generated and valid for 15 days for Part B to be updated.
Part B — Transport details
Part B covers how the goods are being moved. It includes:
- Vehicle number (for road transport)
- Transport document number (for rail, air, or ship)
- Mode of transport
- Approximate distance in km
Important: E-way bill validity starts only when Part B is first entered. Before Part B is entered, the e-way bill is not active. Part B can be updated if the vehicle changes mid-journey, but the vehicle number update does not reset the validity clock.
Exception for short distances: If the distance between the consignor or consignee and the transporter is less than 50 km within the same state, Part B is not mandatory. Only Part A needs to be filled for that leg of the journey.
E-way bill validity
Validity is calculated based on distance, not time or value:
| Distance | Validity for regular cargo | Validity for Over Dimensional Cargo (ODC) |
|---|---|---|
| Up to 200 km | 1 day | 1 day |
| 200 to 400 km | 2 days | 2 days |
| 400 to 600 km | 3 days | 3 days |
| 600 to 800 km | 4 days | 4 days |
| Every additional 200 km | 1 additional day | 1 additional day |
Validity starts from the time Part B is entered and expires at midnight on the last day. Extensions are allowed up to 8 hours before or 8 hours after expiry, for reasons such as vehicle breakdown, natural calamity, trans-shipment delay, or law and order issues. From 1st January 2025, total extensions across the lifetime of an e-way bill are capped at 360 days from the original generation date.
When an e-way bill is NOT required
Under Annexure to Rule 138(14) of the CGST Rules, the following movements are exempt from e-way bill requirements:
- Goods transported by non-motorised vehicles such as hand carts, bicycles, or animal-drawn vehicles
- Goods transported from Customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS)
- Goods transported by the Central Government, State Governments, or local authorities by rail
- Goods classified as no-supply under Schedule III of the CGST Act
- Goods specifically listed in Annexure to Rule 138(14), including live animals, fish, meat, fresh vegetables, fruits, currency, used personal and household effects, and others
- Alcoholic liquor for human consumption, petroleum crude, high-speed diesel, petrol, natural gas, and aviation turbine fuel
- Goods where the consignment value is below Rs. 50,000
- Intra-state movement of specific goods in states that have issued higher threshold notifications
E-way bill vs delivery challan vs e-invoice
These three documents are frequently confused, especially by traders and manufacturers. Here is how they differ:
| E-Way Bill | Delivery Challan | E-Invoice | |
|---|---|---|---|
| Purpose | Transit permit for moving goods | Document for moving goods without a sale | Authentication of a B2B tax invoice |
| Required when | Value above Rs. 50,000 in transit | Goods moving without a sale (job work, stock transfer) | Turnover above Rs. 5 crore, for B2B supplies |
| Generated on | ewaybill.nic.in | Your own billing software | Invoice Registration Portal (IRP) |
| Creates tax liability | No | No | No (invoice already does) |
| Penalty for missing | Rs. 10,000 or tax evaded | Goods can be treated as unaccounted supply | Rs. 10,000 or 100% of tax per invoice |
| Unique identifier | E-Way Bill Number (EBN) | Delivery challan number | Invoice Reference Number (IRN) |
Common e-way bill mistakes Indian businesses make
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Generating the e-way bill after the goods have left. The e-way bill must be generated before goods start moving. Generating it after the truck has departed and then trying to backdate it is non-compliant. Tax officers can check the generation timestamp.
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Not updating the vehicle number when the vehicle changes. If goods are transferred to a different vehicle mid-journey, the transporter must update Part B with the new vehicle number. Failing to do so means the e-way bill details do not match the actual vehicle carrying the goods, which can lead to detention at a checkpoint.
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Letting the e-way bill expire during transit. If the truck is delayed due to traffic, breakdown, or a long halt, the e-way bill may expire before delivery. Always check the expiry time before departure and plan for delays. Extensions must be requested on the portal within the allowed window.
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Not generating an e-way bill for job work movements. Many small manufacturers send goods to job workers without an e-way bill, assuming a delivery challan is sufficient. For job work movements above Rs. 50,000, both a delivery challan and an e-way bill are required. They serve different purposes and one does not replace the other.
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Calculating consignment value incorrectly. The consignment value for e-way bill purposes includes GST. If goods are worth Rs. 45,000 and 18% GST is Rs. 8,100, the total consignment value is Rs. 53,100, which exceeds Rs. 50,000 and requires an e-way bill. Many businesses calculate only the base value and miss this.
Frequently asked questions
What is an e-way bill under GST?
An e-way bill is a mandatory electronic document required under Section 68 of the CGST Act and Rule 138 of the CGST Rules 2017. It must be generated on the GST e-way bill portal before transporting goods valued above Rs. 50,000 anywhere in India. It acts as a digital transit permit that tax officers can verify during goods movement.
Who generates an e-way bill, the seller or the transporter?
The supplier is primarily responsible for generating the e-way bill. If the supplier does not generate it, the recipient can. If neither generates it, the transporter must generate it before moving the goods. For e-commerce operators and courier agencies, they can generate Part A on behalf of the consignor if authorised.
What is the validity of an e-way bill?
Validity is based on distance: 1 day per 200 km for regular cargo. A consignment travelling 350 km would have a validity of 2 days. Validity starts from the time Part B (transport details) is first entered on the portal. Extensions of up to 8 hours before or after expiry can be requested for valid reasons.
Is an e-way bill required for intra-city movement?
Generally no, if the goods value is below Rs. 50,000 or the movement is within a notified exemption zone. However, the threshold applies to the consignment value including GST. Each state may also have specific rules for intra-state thresholds. Always check the applicable state notification for the exact intra-state limit.
Can an e-way bill be cancelled?
Yes, within 24 hours of generation, provided the goods have not been moved and the e-way bill has not been verified by a tax officer in transit. After 24 hours, the e-way bill cannot be cancelled on the portal.
Related terms
Delivery Challan · E-Invoice · GST Invoice · Tax Invoice · Input Tax Credit · CGST · IGST
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