E-way Bill

What is E-way Bill

E-way bill is an electronic document generated on the GST portal evidencing movement of goods.  The common portal for generation of e-way bill is  As per Section 68 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000/- to carry with him such documents and such devices as may be prescribed. Accordingly, the rule requires the person in charge of a conveyance should carry —

a) the invoice or bill of supply or delivery challan, as the case may be; and

b) A copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance in such manner as may be notified by the Commissioner.

When to issue E-way bill
Requirement of generation of E-way Bill by registered person
E-way bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000 –

  • In relation to a ‘supply’: This includes simple transactions like sale of goods, branch transfers, any supply to related party, transfer of goods to job worker etc.
  • For reasons other than a ‘supply’: The category includes all such movement of goods which does not constitute supply per se like taking goods for undertaking services (in case of all contractors, caterers etc), sending of goods on rent, sending goods for repair etc.  The following transactions are already clarified by government in this regard:

– The issue of IGST exemption on inter-state movement of various modes of conveyance, between distinct persons as specified in section 25(4) of the Central Goods and Services Tax Act, 2017, carrying goods or passengers or both; or for repairs and maintenance, [except in cases where such movement is for further supply of the same conveyance] was examined and a circular 1/1/2017-IGST dated 7.7.2017, was issued clarifying that such interstate movement shall be treated “neither as a supply of goods nor supply of service” and therefore would not be leviable to IGST.

– Inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes] was discussed in GST Council’s meeting held on 10th November, 2017 and the Council recommended that the circular 1/1/2017-IGST shall mutatis mutandis apply to inter-state movement of such goods, and except in cases where movement of such goods is for further supply of the same goods, such inter-state movement shall be treated ‘neither as a supply of goods or supply of service,’ and consequently no IGST would be applicable on such movements.

– Expired stock has no commercial value, but is often transported back to the seller for statutory and regulatory requirements, or for destruction by seller himself. E way bill is required in such cases also.

– Due to inward ‘supply’ from an unregistered person: Generation of E-way Bill in all purchases from unregistered person shall be responsibility of registered person.

Cases requiring mandatory E-way bill generation

E-way bill needs to be generated mandatorily even if the value of the consignment of Goods is less than Rs. 50,000 in the following cases:

1. Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker,

2. Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

Who will generate E Way Bill

Movement by Registered Person

As per Rule 138 of the CGST Rules, 2017, every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-way bill. The movement can be on any of the following counts:

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person

Both the person causing the movement or the transporter may choose to generate and carry E-way bill even if the value of goods is less than Rs 50,000.

Validity of E-way Bill

Validity of E-way Bill shall be as follows:

Type of conveyance


Validity of E-way bill

Other than over- dimensional cargo

Upto 100Kms

1 Day

For every additional 100Kms or a part thereof

Additional 1 day

For over dimensional cargo

Upto 20 Kms

1 Day

For every additional 20Kms or a part thereof

Additional 1 day

“Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988).

Where under circumstances of an exceptional nature, including trans-shipment, the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period after updating the details in Part B of FORM GST EWB-01, if required.  Only Transporter can extend the validity.

Process to be followed for extension of E way Bill

There is an option under e-way bill to extend the validity period. This option is available for extension of e-way bill before 4 hours and after 4 hours of expiry of the validity. Here, transporter will enter the e-way bill number and enter the reason for the requesting the extension, from place (current place), approximate distance to travel and Part-B details. It may be noted that he cannot change the details of Part-A. He will get the extended validity based on the remaining distance to travel.

Determination of day to determine validity of E way Bill

The day shall be determined in the following manner:

(i) Suppose an e-way bill is generated at 00:04 hrs. on 14th March. Then first day would end on 12:00 midnight of 15 -16 March. Second day will end on 12:00 midnight of 16 -17 March and so on.

(ii) Suppose an e-way bill is generated at 23:58 hrs. on 14th March. Then first day would end on 12:00 midnight of 15 -16 March. Second day will end on 12:00 midnight of 16 -17 March and so on.

Cancellation of E-way bill

Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill. An e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.

It must be noted that if there is a mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected. Only option is cancellation of E-way bill and generate a new one with correct details.

Professional services available Audit Management
Tax Lok English Viedo
Tax Lok Hindi Viedo
Check Your Tax Knowledge
HR Consulting services



Do You Want To Take FREE DEMO Of Our GST/Income Tax Library.