E-Way Bill Rules: Who Must Generate, When, What to Carry

An e-way bill is a digital document required for the movement of goods in India when the consignment value exceeds ₹50,000. The supplier, recipient, or transporter must generate it before the goods start moving, and a copy (printed or on a mobile device) must be carried by the person in charge of the conveyance. This article explains the rules in detail, including who must generate the bill, when it is required, what documents to carry, and how to handle common issues.

What Is an E-Way Bill?

An e-way bill (EWB) is a unique 12-digit number issued under the GST regime for the movement of goods. It is generated online through the GST portal or the dedicated e-way bill portal and is valid for a specific period based on the distance traveled. The bill contains details of the consignor, consignee, transporter, and the goods being moved. Its purpose is to enable seamless tracking of goods and to prevent tax evasion by ensuring that all movements are documented.

Who Must Generate an E-Way Bill?

The obligation to generate an e-way bill falls on the registered person causing the movement of goods. This includes:

• Supplier – When dispatching goods to a buyer, even if the transport is arranged by the buyer.
• Recipient – When the recipient arranges the transport and the supplier is not registered (e.g., unregistered supplier).
• Transporter – If neither the supplier nor the recipient generates the bill, the transporter must do so before moving the goods.

For movements within a state, the bill is generated by the registered person whose state the goods originate from. For inter-state movements, the same rule applies. If the goods are moved under a bill of lading or a delivery challan, the transporter can generate the e-way bill based on that document.

When Is an E-Way Bill Required?

An e-way bill is required when the consignment value exceeds ₹50,000. This value is the taxable value of the goods, not including GST. However, there are exceptions where the bill is required even below ₹50,000, such as when the goods are moved in a vehicle that is not a regular conveyance (e.g., a private car) or when the goods are exempt from GST but the movement is for a taxable supply.

Exemptions from e-way bill requirements include:

• Goods transported by non-motorized conveyances (e.g., handcarts, bicycles).
• Goods transported from a customs port, airport, or ICD to a customs bonded warehouse.
• Certain specified goods like jewelry, precious stones, and defense supplies (as per notifications).

For a movement of less than 10 km within a state, no e-way bill is required unless the goods are being moved from a place of business to a place of storage or vice versa, in which case the bill is needed even for short distances.

What Documents Must You Carry?

When goods are in transit, the person in charge of the conveyance must carry:

• The e-way bill number (either a printed copy or a screenshot on a mobile device).
• The invoice or delivery challan for the goods.
• The transport document, such as a lorry receipt or a bill of lading, if applicable.

In practice, the e-way bill number is often written on the invoice, and the driver carries a copy of the invoice. For inter-state movement, it is advisable to have a physical copy of the e-way bill as well, as some state authorities may not accept digital copies during inspections.

How to Generate an E-Way Bill

Generating an e-way bill involves the following steps:

1. Log in to the e-way bill portal (ewaybillgst.gov.in) or the GST portal using your credentials.
2. Select the option to generate a new e-way bill.
3. Enter the details of the consignor and consignee (name, GSTIN, address).
4. Enter the invoice or challan number and date.
5. Enter the goods details: HSN code, description, quantity, and value.
6. Enter the transporter details (if known) and the vehicle number.
7. Submit the form and note the 12-digit e-way bill number.

If the transporter is generating the bill on behalf of the supplier, they will need the supplier’s GSTIN and the invoice details. The portal also allows bulk generation through Excel uploads for high-volume users.

Validity and Extension of E-Way Bill

The validity of an e-way bill depends on the distance to be traveled:

• For distances up to 200 km, the bill is valid for 1 day from the date of generation.
• For distances beyond 200 km, an additional day is added for every 200 km or part thereof.

For example, a movement of 450 km would have a validity of 3 days (1 day for the first 200 km, plus 1 day for the next 200 km, plus 1 day for the remaining 50 km). If the goods are not delivered within the validity period, the e-way bill can be extended by the transporter or the supplier, but only within 8 hours of the expiry. Extension is allowed for 24 hours for every 200 km of additional distance.

Common Problems and How to Avoid Them

One common issue is generating an e-way bill with incorrect details, such as a wrong vehicle number or an incorrect HSN code. This can lead to penalties during inspection. Always double-check the details before submission. Another problem is the e-way bill expiring mid-journey due to delays. To avoid this, plan the journey and extend the bill in advance if needed.

If the goods are transferred from one vehicle to another, the e-way bill must be updated with the new vehicle number. This is done by selecting the ‘Update Vehicle’ option on the portal. Failure to do so can result in a penalty. Also, for multiple consignments in one vehicle, each consignment needs its own e-way bill.

Frequently Asked Questions

Is an e-way bill required for movement of goods within the same state?

Yes, if the consignment value exceeds ₹50,000 and the movement is for a supply, an e-way bill is required even for intra-state movement. However, some states have reduced this threshold to ₹1 lakh for certain goods, so it’s best to check the specific state’s rules.

What if the consignment value is below ₹50,000 but the goods are taxable?

If the value is below ₹50,000, no e-way bill is required, unless the movement is for a job work or the goods are being moved to a place of business for further supply. In such cases, the bill may be required even if the value is lower.

Can a transporter generate an e-way bill on behalf of the supplier?

Yes, a transporter can generate the e-way bill if the supplier or recipient has not done so. The transporter must have the necessary details of the consignment, such as the invoice number and value.

What happens if I forget to carry the e-way bill during transport?

If the goods are intercepted and the e-way bill is not available, a penalty of ₹10,000 or the tax evaded (whichever is greater) can be levied. It is crucial to always carry a copy of the e-way bill, either printed or on a mobile device.

Is an e-way bill required for goods transported by rail or air?

Yes, an e-way bill is required for goods transported by rail, air, or ship, but it must be generated before the goods are handed over to the transporter. The transporter (e.g., railway) is not required to generate it, but the supplier or recipient must.

Can I cancel an e-way bill after generation?

Yes, an e-way bill can be canceled within 24 hours of generation, provided the goods have not yet been moved. After that, it cannot be canceled, and you would need to generate a new one with a correction.

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