What is E-Way Bill? Applicability, Rules, Validity &Penalties

Learn about GST E-Way Bill rules, validity, penalties & latest updates. Stay compliant with mandatory e-way bill regulations for smooth goods transport.

The implementation of the Goods and Services Tax (GST) in India has introduced several compliance measures, one of which is the E-Way Bill system. This electronic document is mandatory for the movement of goods under specified conditions and serves as a key tool for tracking and ensuring tax compliance.

What is an E-Way Bill?

An E-Way Bill is a mandatory electronic document required for transporting goods valued at more than INR 50,000. It must be generated on the E-Way Bill Portal before the goods can be transported in any vehicle exceeding this value threshold. This process is crucial for GST compliance and helps streamline tax regulations.

In addition to web-based generation, the E-Way Bill can be created or canceled through multiple methods, including SMS, an Android app, and API integration. These options facilitate seamless data transfer between systems, ensuring accurate GSTIN usage. It is essential to verify the GSTIN using the GST search tool available on the portal to prevent errors.

Once generated, the system assigns an E-Way Bill Number (EBN), which serves as a key reference for the supplier, recipient, and transporter. The EBN is essential for tracking and validating the movement of goods under GST regulations.

E-Way Bill Applicability – When Should an E-Way Bill Be Generated?

An E-Way Bill is required in the following cases:

• Value Exceeds Rs. 50,000
  • If the value of transported goods exceeds Rs. 50,000, generating an E-Way Bill is mandatory.
  • This ensures proper tracking, transparency, and compliance with GST regulations.
• Supplier Not GST-Registered, Receiver GST-Registered
  • If the supplier is not registered under GST, but the recipient is registered, the recipient must generate the E-Way Bill.
• Supplier Has Not Generated the E-Way Bill
  • If the supplier fails to generate the E-Way Bill, the transporter must do so before moving the goods.
  • This applies regardless of the mode of transport (road, rail, air, or ship).

Who Should Generate an E-Way Bill?

The responsibility to generate an E-Way Bill depends on the type of entity involved:

1. Registered Person

• • Must generate an E-Way Bill for goods valued over INR 50,000.
  • Can also generate it for lower values voluntarily.
  • Needs to fill out Part A of Form GST EWB-01 before transportation.

2. Unregistered Person

• • If supplying goods, must generate an E-Way Bill.
  • If supplying to a registered person, the recipient must ensure compliance.

3. Transporter

• • If the supplier has not generated the E-Way Bill, the transporter must do so.
  • If transporting multiple consignments valued below INR 50,000 individually but exceeding INR 50,000 in total, they need to generate a Consolidated E-Way Bill using Form GST EWB-02.

What Are the Documents Required to Generate an E-Way Bill?

To generate an E-Way Bill, the following documents/details are required:

• Invoice / Bill of Supply / Challan related to the goods.
• For transport by road – Transporter ID or Vehicle Number.
• For transport by rail, air, or ship – Transporter ID, Transport Document Number, and Date.

What is the Validity of an E-Way Bill?

The validity of an E-Way Bill depends on the distance that goods need to be transported.

• For a distance of up to 100 km, the E-Way Bill is valid for one day from the time of generation.
• For every additional 100 km, the validity extends by one extra day. Source

Understanding the “Relevant Date”

• The relevant date refers to the date and time of E-Way Bill generation.
• The validity period starts immediately from the generation time.
• Each day is calculated as 24 hours from the moment the E-Way Bill is created.

How to Extend E-Way Bill Validity?

1. Log in to the E-Way Bill portal.
2. Click “Extend E-Way Bill” before expiry.
3. Enter Vehicle Number & Reason for Extension (e.g., breakdown, weather delays). Submit request for approval & extension.

Inter-State Movement and State-Wise E-Way Bill Exemptions

Since the implementation of the E-Way Bill system on April 1, 2018, inter-state movement of goods has significantly increased, leading to a surge in E-Way Bill generation. However, state-wise E-Way Bill rules have evolved over time, with different states implementing their own threshold limits and exemptions for intra-state movement.

State-Specific E-Way Bill Exemptions & Reliefs

Several States and Union Territories (UTs) have provided relief by exempting businesses from generating E-Way Bills if:

• The monetary value of goods falls below a specific threshold.
• The goods belong to certain exempted categories.

For example, Tamil Nadu has exempted the requirement for an E-Way Bill when the value of goods is below ₹1,00,000 for intra-state movement.

To explore state-wise E-Way Bill rules and threshold limits, you can:

• Visit our state-wise E-Way Bill rules page.
• Refer to the official commercial tax websites of respective states/UTs for the latest updates.

Penalties for Non-Compliance with E-Way Bill Rules

It is an offense to move goods without an invoice or an e-way bill, and attracts a fine of ₹10,000 or the amount of tax sought to be evaded, whichever is higher. Hence the minimum fine for the breach of these provisions is fixed at ₹10,000.

Types of Penalties

• Fines may be paid in amounts of up to ₹10,000 or the equivalent of tax that avoided attempt, whichever sum is higher. 
• Further sanctions may apply for subsequent breaches, subject to the level of the breach.

E-Way Bill Format

Find the

Part A: Contains the details of Sold To and Ship To.

• Sold To Details: Name, address, GSTIN details if any and contact number.
• Ship To Details: Name, address, GSTIN number if any, and contact number.
• Covers Information: Covering document, Cover document number and document date.
• Goods Description: A statement covering the goods in the consignment, indicating HSN code, quantity and value of taxable goods.
• Value of Goods: Value of the complete load of goods in one package.

Part B: Contains details about the transporter and the goods vehicle.

• Transporter Information: Name of the transporter, transporter number, and type of transport (road, rail, ship, air).
• Vehicle part: Vehicle registration number (if available), estimated distance, and expected time of arrival.

Conclusion on GST E-way Bill

In conclusion, order for a company to operate effectively, it is imperative that the e-way bill regulations are adhered to. Timely generation, modification, and monitoring of the expiration of e-way bills can assist in eliminating the risk of fines. Keeping with the changes in the law and using technology for better management can also aid in improving the efficiency of processes.

In case of any challenges or need for further information, seeking advice from tax experts will help ensure that compliance is achieved and problems kept at a minimum. Make sure that you keep every member of your business up to date with e-way bill requirements to avoid incurring deadlines or even penalties.

Ensure hassle-free GST E-Way Bill compliance with expert guidance. Our professionals provide end-to-end support for registration, generation, and compliance. Contact us today!

FAQs on GST E-Way Bill

What is an E-Way Bill?

An E-Way Bill (Electronic Way Bill) is a mandatory document generated on the GST portal for the movement of goods worth ₹50,000 or more within or across states. It ensures compliance and prevents tax evasion.

What is the Use of an E-Way Bill in GST?

An E-Way Bill helps in tracking goods movement, reducing tax evasion, and ensuring smooth transportation under GST compliance. It is required for interstate and intrastate trade above the prescribed limit.

What is the Limit of GST on E-Way Bill?

An E-Way Bill is required for the movement of goods valued at ₹50,000 or more. Some states have lower limits for intrastate transactions.

Is E-Way Bill Applicable on Gold?

As per GST regulations, an E-Way Bill is not required for gold and jewelry under HSN code 71, unless a state mandates it separately.

Is an E-Way Bill Required for Courier Delivery?

Yes, an E-Way Bill is required for courier delivery if the shipment value exceeds ₹50,000. The transporter or consignor must generate it.

When Should an E-Way Bill be Issued?

An expansion of this system is the e-way bill which is the compulsory document for all transactions, be it inter or intra-state movement of goods worth more than ₹50,000. It includes within its ambit all the supplies made by sale, export, work, and inward supply from unregistered persons.

How to Download an E-Way Bill?

To download an E-Way Bill, log in to the E-Way Bill Portal, go to Reports > E-Way Bill > Download, enter the E-Way Bill number, and generate a PDF.

How Do I Make an E-Way Bill for a Debit Note?

To generate an E-Way Bill for a debit note, use Document Type: Debit Note while entering details in the E-Way Bill portal. Include invoice reference, revised value, and transportation details.

Is the E-Way Bill Applicable for Job Work?

Yes, an E-Way Bill is required for job work if the consignment value exceeds ₹50,000, even if the goods are sent for processing. The supplier or job worker must generate it.