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What is e-way bill? Objectives, usage, rules, and e-way bill generation process
An e-way bill is a permit required for interstate movement of goods. Learn more about its regulations, advantages, and processes in this blog.
Efficient transportation of goods is crucial for businesses, and so is compliance with tax regulations, but doing both can often be complex. The e-way bill system was created to address this. It simplifies logistics by ensuring seamless movement of goods while reducing tax evasion. This blog post provides an in-depth guide on what an e-way bill is, its objectives, recent updates, and a step-by-step guide on generating one through the online portal.
What is an e-way bill?
An e-way bill, or electronic way bill, is a mandatory document for the movement of goods exceeding INR 50,000 in value, whether within a state or across state borders. It serves as evidence of the legitimacy of the goods being transported and is a crucial component of the GST framework. This document facilitates the tracking and monitoring of goods in transit, aiding tax compliance.1
Recent notifications on e-way bill
The e-way bill system has implemented significant updates since January 2025. Multi-Factor Authentication (MFA) is now mandatory across all businesses, following a phased rollout: starting with businesses above INR 20 crore turnover in January, extending to those above INR 5 crore in February, and covering all taxpayers since April 1. Time-based restrictions have also been introduced: e-way bills can now only be generated for documents less than 180 days old, and their validity can't be extended beyond 360 days from the date of generation. Recent notifications have focused on enhancing the user experience and compliance efficiency.2
Objectives of e-way bill
The primary aim of the e-way bill system is to streamline the movement of goods across India under GST. Some of its key objectives are:
● Reduce transit time
Electronic generation expedites the process.
● Improve logistics efficiency
Real-time tracking enhances supply chain management.
● Eliminate of physical documentation
Reduces paperwork and manual errors.
● Increase transparency
Enables better tracking and monitoring of goods movement.
● Reduce tax evasion
Helps in curbing illegal transportation of goods.
Usage of e-way bill
The following are some scenarios in which an e-way bill must be used for inter-state movement of goods:
● When the value of goods being transported exceeds ₹50,000.
● When the supplier is unregistered under GST but the recipient is; the GST-registered party has to generate the e-way bill.
● For specific goods in the e-way bill notification even if valued under ₹50,000.3
When should an e-way bill be issued?
When goods are worth ₹50,000 or more at the time of transportation, an e-way bill must be generated for the ‘supply’.
A supply might be any of the following:
● A supply made for a payment in the course of business.
● A supply made for a payment that may not be in the course of business.
● A supply without consideration (without payment).
In simpler terms, the term ‘supply’ usually means:
● Sale of goods and payment made
● Transfer like branch transfers
● Barter/exchange (a method of payment in which goods are exchanged for money)
E-way bills for any of the above-mentioned cases must be created on a single platform.
Benefits of e-way bills
Some benefits of e-way bills are:
1. Real-time tracking
The e-way bill enables authorities to monitor goods movement and ensure tax compliance through transparent digital tracking.
2. Streamlined logistics
It simplifies the transportation process by providing a digital record of the goods being transported.
3. Reduced transit time
By facilitating quick verification, it reduces the time spent at checkpoints.
4. Unified process
It creates a single, nationwide system for goods movement, eliminating the need for separate transit passes in different states.4
Disadvantages of e-way bills
The following are some potential challenges of using e-way bills:
1. Technical glitches
Portal downtime can disrupt operations.
2. Dependence on internet connectivity
Rural areas may face connectivity issues.5
Who can generate an e-way bill?
A registered individual (consignor, consignee, receiver or transporter) can create an e-way bill if the transportation is done by them or through hired means of transportation (air, rail, or road):
Unregistered person
The unregistered transporter can enroll on the common portal and generate the bill for the client’s goods.
Registered person
A registered individual (consignor, consignee, receiver, or transporter) can create an e-way bill if the transportation is done by them or through hired means of transportation (air, rail, or road).
Transporter
If both the consignor and consignee do not create an e-way bill, the transporter must generate it.6
Documents required to generate an e-way bill
Here are some of the necessary documents required for e-way bill:
● Tax invoice, bill of supply, or delivery challan of consignment of goods.
● In case of road transportation, transporter ID or vehicle number.
● In case of transport via rail, air, or ship, transporter ID, transport document number, and documentation date.7
Modes of generating an e-way bill
The supplier or transporter can generate an e-way bill through any of the following ways:
1. E-way bill portal
2. SMS
3. Android app
4. GST Suvidha providers
5. Site-to-site integration (through an API)8
Note: The first step for any of these options is to visit the portal and register.
Steps for e-way bill generation process on the portal
To generate an e-way bill online, follow these steps:
Step 1: Login to the e-way bill portal
● Visit the official e-way bill portal.
● Enter your GSTIN, username, and password to log in.
Step 2: Select ‘Generate New’
● Click on the ‘E-way Bill’ tab in the dashboard.
● Select ‘Generate New’ to create a new e-way bill.
Step 3: Fill in the consignment details
● Provide the invoice number, date, GSTIN of the supplier and recipient, and the value of goods.
● Provide the invoice number, date, GSTIN of the supplier and recipient, and the value of goods.
Step 4: Enter transport details
● Choose the mode of transportation (road, rail, air, or ship).
● Enter the transporter ID, vehicle number, and transport document number.
Step 5: Generate the e-way bill
● Click on ‘Submit’ to validate the entered details.
● The system will generate an E-way Bill Number (EBN).
● Download and print the bill for reference during transit.
Steps for e-way bill generation process on mobile via SMS
E-way bill can also be generated by mobile via SMS. Below are the steps involved.
Step 1: Register mobile number
● Ensure that the mobile number is registered on the e-way bill portal and linked to the GSTIN.
Step 2: Send SMS in prescribed format
● Compose an SMS in the required format, separated by a single space: EWB GSTIN Recipient Invoice No. Transporter ID. Send the SMS at 7738299899.
Step 3: Receive e-way bill number
● A confirmation SMS will provide the e-way bill number, which must be shared with transporters.10
Validity of e-way bill
An e-way bill's validity period depends on the travel distance. For regular cargo, one day is allowed per 100 kilometers plus an extra day for any additional distance. For instance, a 310-kilometer journey gets 4 days validity (3 days plus 1 extra day). For Over Dimensional Cargo (ODC), the calculation changes to one day per 20 kilometers plus an extra day for any additional distance.11
Contents of an e-way bill
An e-way bill is recorded in Form GST EWB-01. It includes a 12-digit e-way bill number, the validity period of the bill, the date of generation, and the name of the person who generated it.
The e-way bill is divided into two parts:
Part A contains invoice information, such as:
● GSTIN of the supplier and receiver
● Place of delivery and pin code
● Place of dispatch and pin code
● Date, value of goods, and invoice/challan number
● HSN codes
● Transportation document number and reason for transportation such as supply, export, import, job work, sales return, exhibition, etc.
Part B includes transporter information, such as:
● Temporary vehicle registration number
● Defense vehicle number (if applicable)
● Transporter ID12
Important to note:
• Part A must be filled before starting the movement of goods.
• Part B can be completed later by the transporter if needed.
• Both parts can be generated together by the taxpayer responsible for the movement of goods.
The e-way bill is divided into two parts:
Part A contains invoice information, such as:
● GSTIN of the supplier and receiver
● Place of delivery and pin code
● Place of dispatch and pin code
● Date, value of goods, and invoice/challan number
● HSN codes
● Transportation document number and reason for transportation such as supply, export, import, job work, sales return, exhibition, etc.
Part B includes transporter information, such as:
● Temporary vehicle registration number
● Defense vehicle number (if applicable)
● Transporter ID12
Important to note:
• Part A must be filled before starting the movement of goods.
• Part B can be completed later by the transporter if needed.
• Both parts can be generated together by the taxpayer responsible for the movement of goods.
Format of an e-way bill
When is an e-way bill not required?
E-way bills may not be required in some of the following situations:
● Consignment value is less than ₹50,000 except in case of handicraft goods.
● Products being transported are GST-free.
● Transportation is provided by a non-motorized vehicle.
● Goods are transferred to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance from a customs port, air cargo complex, airport or land customs station.
● Goods moved under customs control or with a customs seal.
● Goods are transported up to 20 kilometers within the same state or notified area.
● Goods transported are to or from Nepal or Bhutan.
● Empty cargo containers are transported.
● Goods are carried by rail and the consignor is the central, state or local governments.
● Goods excluded from e-way bill requirements under GST rules of a particular state or union territory.
● Goods fall into the category of no-supply goods as per Schedule-III of Central Tax.13
● Consignment value is less than ₹50,000 except in case of handicraft goods.
● Products being transported are GST-free.
● Transportation is provided by a non-motorized vehicle.
● Goods are transferred to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance from a customs port, air cargo complex, airport or land customs station.
● Goods moved under customs control or with a customs seal.
● Goods are transported up to 20 kilometers within the same state or notified area.
● Goods transported are to or from Nepal or Bhutan.
● Empty cargo containers are transported.
● Goods are carried by rail and the consignor is the central, state or local governments.
● Goods excluded from e-way bill requirements under GST rules of a particular state or union territory.
● Goods fall into the category of no-supply goods as per Schedule-III of Central Tax.13
E-way bill rules
E-way bills are usually procured for transportation or consignment of goods that is worth ₹50,000 or above. If an e-way bill is issued and the products are not transported as indicated, the bill must be canceled. When many consignments are transported in a single transit, the transporter must create an e-way bill for each of the consignments individually on the platform.
E-way bill penalties
If a shipment is found to be without an e-way bill, the individual responsible must pay a penalty. In the absence of an e-way bill, the departmental officer may hold or confiscate goods and vehicles used.
Modification, cancellation, and rejection of an e-way bill
Cancellation of e-way bill
A new e-way bill cannot be created against an invoice until the old e-way bill has been canceled. If the products are not delivered or transported as per the information provided, the e-way bill can be canceled online on the portal within 24 hours of its production. Below is a step-by-step procedure to cancel an EWB:
● Select the e-way bill option on the portal and click the ‘cancel’ button.
● Add the bill number and press ‘go.’
● Choose a reason for cancellation like duplication, canceled orders or data entry errors.
● If your reason for cancellation is not covered in the predefined options, you can type it and click ‘cancel’.
Modification of e-way bill
Except for Part B, which can be modified with transportation details, an e-way bill cannot be modified once it has been created. If incorrect information has been entered while creating it, the bill can be canceled within 24 hours of being generated.
Rejection of e-way bill
On the portal, the recipient of the goods can check the details of the e-way bill created against them. An e-way bill may be rejected by the recipient of goods within 72 hours after its creation. If an e-way bill is not canceled or rejected within the time-frame indicated, it is considered accepted.
Conclusion
The e-way bill is a crucial component of India’s GST regime, ensuring efficient and transparent movement of goods. Understanding its rules and generation process is essential for businesses to maintain compliance and avoid penalties.
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Frequently Asked Questions
1. What are the penalties for not carrying or presenting an e-way bill?
If a shipment is found to be without an e-way bill, the individual responsible must pay penalty.
2. How many days after raising an invoice should one generate the e-way bill for delayed delivery?
The e-way bill is only needed when the products are delivered. Thus, part A of the e-way bill can be generated if the invoice is raised but the items have not yet been delivered, and part B details can be submitted once the goods have been delivered. The moment Part B is input, the e-way bill's validity starts.
3. What is the responsibility and liability of the transporter in the e-way bill system?
In the event that the supplier has not produced an e-way bill for any reason, carriers of goods by rail, air, road, etc. must also create an e-way bill. Create an electronic waybill based on the details provided by consignors and suppliers about the invoice and challan.
4. Can an e-way bill number be assigned to another transporter?
The authorized transporter may assign an e-way bill to any enrolled or registered transporter for onward carriage of goods. The new transporter can only update Part B of the EWB. If the supplier of goods wishes to change the transporter or reassign the e-way bill, they can do so by selecting the option ‘Change/Re-assign another transporter’ on the portal.
5. Can I add two invoices in one e-way bill?
No, two invoices cannot be used to generate a single e-way bill. Consolidated e-way bills, however, can be used to combine two or more e-way bills.
6. What is the URP in the e-way bill?
In the event that the consignee or consignor is an unregistered taxpayer and does not possess a GSTIN, the user must put ‘URP’ (Unregistered Person) in the relevant GSTIN column.
7. What are the criteria of “Value of Consignment of Goods” applied?
It's the total value that determines if an e-way bill is needed. You need to generate an e-way bill in two cases:
• When a single invoice is worth more than ₹50,000
• When multiple invoices in one vehicle add up to more than ₹50,000
Remember, the invoice value includes the basic price and all taxes, but doesn't include any exempt goods being transported with taxable items.
• When a single invoice is worth more than ₹50,000
• When multiple invoices in one vehicle add up to more than ₹50,000
Remember, the invoice value includes the basic price and all taxes, but doesn't include any exempt goods being transported with taxable items.
Published on November 29, 2022.
Updated on May 5, 2025.
Sources:
1. https://www.bajajfinserv.in/eway-bill
2. https://docs.ewaybillgst.gov.in/Documents/Advisory_on_Updates_to_EWB-updated.pdf
3. https://docs.ewaybillgst.gov.in/html/faq.html.
4. https://www.bajajfinserv.in/eway-bill.
6. https://docs.ewaybillgst.gov.in/html/faq.html.
7. https://cleartax.in/s/eway-bill-gst-rules-compliance
8. https://docs.ewaybillgst.gov.in/Documents/Modes%20of%20EWB%20generation.pdf
9. https://cleartax.in/s/generate-gst-eway-bills
10. https://www.bajajfinserv.in/eway-bill-generation
11. https://docs.ewaybillgst.gov.in/html/faq.html
12. https://docs.ewaybillgst.gov.in/documents/GST_EWB_01.pdf
13. https://www.godigit.com/gst/when-is-eway-bill-not-required
Updated on May 5, 2025.
Sources:
1. https://www.bajajfinserv.in/eway-bill
2. https://docs.ewaybillgst.gov.in/Documents/Advisory_on_Updates_to_EWB-updated.pdf
3. https://docs.ewaybillgst.gov.in/html/faq.html.
4. https://www.bajajfinserv.in/eway-bill.
6. https://docs.ewaybillgst.gov.in/html/faq.html.
7. https://cleartax.in/s/eway-bill-gst-rules-compliance
8. https://docs.ewaybillgst.gov.in/Documents/Modes%20of%20EWB%20generation.pdf
9. https://cleartax.in/s/generate-gst-eway-bills
10. https://www.bajajfinserv.in/eway-bill-generation
11. https://docs.ewaybillgst.gov.in/html/faq.html
12. https://docs.ewaybillgst.gov.in/documents/GST_EWB_01.pdf
13. https://www.godigit.com/gst/when-is-eway-bill-not-required
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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