E-way Bill under GST: Rules and Generation Process
The e-way bill is a mandatory electronic document for the movement of goods worth more than ₹50,000. Without it, your consignment can be detained by tax authorities and you face penalties of ₹10,000 or the applicable tax - whichever is higher. This guide covers when you need one, how to generate it, and the validity rules.
What Is an E-Way Bill?
An e-way bill is an electronic document generated on the e-way bill portal (ewaybillgst.gov.in) before the movement of goods begins. It serves as a transit pass - tax authorities at check posts use it to verify that the goods in transit match the declared supply details and that taxes have been or will be paid.
The bill has two parts:
- Part A: Supply details - filled by the supplier or recipient. Includes invoice number, GSTIN of supplier and recipient, goods description, HSN code, value, and quantity.
- Part B: Transport details - filled by the transporter or supplier. Includes vehicle number and transporter ID (if applicable).
When Is an E-Way Bill Mandatory?
An e-way bill is required whenever goods worth more than ₹50,000 are moved - whether by road, rail, air, or ship. This applies to:
- Supply of goods (sale, purchase, stock transfer between GSTINs)
- Inward supply from an unregistered supplier (buyer generates the bill)
- Job work - goods sent for processing and returned
- Non-supply movement (branch transfers within the same GSTIN, if value exceeds ₹50,000)
How to Generate an E-Way Bill
Log in to ewaybillgst.gov.in
Use the same login credentials as the GST portal if you have linked them, or use your e-way bill portal username and password.
Select "Generate New E-Way Bill"
From the dashboard, go to E-Way Bill → Generate New.
Enter Part A details
Fill in the transaction type (outward/inward), document type (tax invoice, delivery challan, etc.), document number and date, GSTIN of supplier and recipient, place of delivery, and goods details (HSN, quantity, value).
Enter Part B details
Add the vehicle number and mode of transport. If the transporter will fill Part B later (common with third-party logistics), the transporter can update it using the e-way bill number.
Submit and note the EBN
After submission, an E-Way Bill Number (EBN) is generated. Print or share this with the driver and transporter. It must accompany the goods throughout the journey.
E-Way Bill Validity
Validity is calculated based on the distance to be travelled. It begins from the time Part B is updated or, if Part B is not updated, from the time of generation.
| Distance | Validity Period |
|---|---|
| Up to 100 km | 1 day |
| 100 km to 300 km | 3 days |
| 300 km to 500 km | 5 days |
| 500 km to 1,000 km | 10 days |
| Above 1,000 km | 15 days |
- If goods are not delivered before the e-way bill expires, it must be extended before expiry.
- Extension can be done on the portal - the transporter or supplier initiates it.
- If goods were never moved, the e-way bill can be cancelled within 24 hours of generation.
Penalties for Non-Compliance
Moving goods without a valid e-way bill - or with an expired one - is treated as a tax evasion risk. The authorities can:
- Detain the goods and the vehicle at the check post.
- Levy a penalty of ₹10,000 or the tax applicable on the goods, whichever is higher.
- Issue a demand for the full tax on detained goods if they are not released within a prescribed period.
Goods can be detained indefinitely
Detained goods are only released once the penalty is paid or adequate security is deposited. For perishable goods, this can cause significant commercial losses on top of the monetary penalty.
Exemptions from E-Way Bill
- Goods transported by non-motorised conveyance (hand cart, cycle, animal-drawn cart).
- Goods that are exempt from GST (e.g. fresh fruits and vegetables, unprocessed cereals, milk).
- Empty cargo containers being moved.
- Goods below ₹50,000 in value (unless the goods are specified notified goods, which require e-way bills regardless of value).
- Intra-city movement within 50 km - transport from your supplier to your place of business within the same city.
- Goods moved by the Department of Posts (India Post) or by Customs under a customs bond.
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