E-way Bill

What it means

An e-way bill is an electronic document that must accompany goods when they are moved by road, rail, air or ship and the consignment value is more than ₹50,000. It is generated on the government’s e-way bill portal and tells the tax department what is being moved, from whom, to whom and in which vehicle. Officers on the road can check it at any point during the journey.

How it works

The e-way bill has two parts. Part A holds invoice details: GSTIN of supplier and recipient, place of delivery, invoice number and date, HSN code and value of goods. Part B holds transport details such as the vehicle number. The supplier, the recipient or the transporter can generate it.

• Threshold: consignment value above ₹50,000, including GST. Some states have higher limits for movement within the state.

• Validity: one day for up to 200 km, plus one more day for every additional 200 km or part of it. For over-dimensional cargo it is one day per 20 km.

• Generation limit: from 1 January 2025, an e-way bill can only be generated for documents dated within the last 180 days.

• Extension: validity can be extended, but not beyond 360 days from the date of original generation.

Example

A textile dealer in Surat sends fabric to a buyer in Pune, about 420 km away.

Taxable value: ₹1,20,000

IGST at 5%: ₹6,000

Consignment value: ₹1,26,000, which is above ₹50,000, so an e-way bill is required.

Validity: the first 200 km gives 1 day. The remaining 220 km is more than 200 km, so it counts as 2 further blocks of 200 km (200 km plus a part of 20 km). Total validity = 1 + 2 = 3 days. If the bill is generated at 11 am on 5 November 2026, the first day ends at midnight on 6 November, so it is valid until midnight of 8 November 2026. If the truck breaks down and cannot reach in time, the transporter can extend the bill in the window from eight hours before to eight hours after expiry.

Key points to remember

• Moving goods without a valid e-way bill can lead to detention of the goods and vehicle, with penalty up to 200% of the tax payable.

• If the vehicle changes on the way, update Part B with the new vehicle number.

• For businesses covered by e-invoicing, the e-way bill can be created directly from the IRN.

• Cancel a wrongly generated e-way bill within 24 hours; you cannot edit it.

• Check the state’s intra-state limit before skipping an e-way bill for local deliveries.