GST eWay Bill: Rules, Applicability, Limit, Requirement & Generation Process

Under the Goods and Services Tax (GST) regime in India, an eWay Bill (Electronic Way Bill) is mandatory for the movement of goods when the value of the consignment exceeds a specified threshold. This bill ensures transparency and compliance during the transportation of goods across states. At IndiaFilings, we simplify this process through our powerful LEDGERS software, enabling businesses to generate GST eWay Bills online quickly and seamlessly. Get in touch with our experts today and streamline your logistics with ease using LEDGERS.

What is an eWay Bill?

Under the GST regime, an Electronic Way Bill (eWay Bill) is a mandatory document required for the movement of goods. A registered person cannot transport goods in a vehicle if the value of the consignment exceeds Rs. 50,000 (as per a single invoice, bill, or delivery challan) without generating an eWay Bill through the designated GST portal.

Additionally, eWay Bills can also be generated or cancelled via SMS, the Android app, or through API-based site-to-site integration, provided the correct GSTINs of the supplier and recipient are used. It's recommended to validate GSTINs using the GST Search Tool before entering them. Once generated, a unique eWay Bill Number (EBN) is assigned and shared with the supplier, recipient, and transporter for reference and compliance.

Legal Framework and Implementation Timeline of eWay Bill

The requirement to generate an eWay Bill is mandated under Section 68 of the Central Goods and Services Tax (CGST) Act, and is elaborated in Rule 138 of the CGST Rules, 2017.

The system for eWay Bills was first implemented for interstate movement of goods from April 1, 2018. Subsequently, the requirement was extended to intrastate movement of goods

Key Components of the eWay Bill System

The eWay Bill is a crucial compliance document under GST for the transportation of goods and is structured in two parts: Part A and Part B. Both parts must be completed to generate a valid eWay Bill for goods valued over Rs. 50,000, whether for interstate or intrastate movement.

Part A – Consignment Details

Part A captures the core details related to the goods being transported and the transaction. The following information is required:

• GSTIN of the recipient – The registered GST number of the buyer or consignee.

• Place of delivery – PIN code of the destination where the goods are to be delivered.

• Invoice or challan number and date – Reference document number linked to the supply.

• Value of goods – Total value of the consignment.

• HSN code – Harmonized System of Nomenclature code for the goods.

• Businesses with turnover up to Rs. 5 crores must mention the first 2 digits.

• Businesses with turnover above Rs. 5 crores must provide a 4-digit HSN code.

• Reason for transportation – Selected from a predefined list (e.g., supply, return, job work).

• Transport document number – Such as Goods Receipt (GR) number, Airway Bill number, Railway Receipt number, or Bill of Lading.

Part B – Transport Details

Part B focuses on the mode of transport and captures details such as:

• Vehicle number for road transport.

• Transporter details or conveyance information for movement by rail, air, or ship.

When Should an eWay Bill Be Issued?

An eWay Bill must be generated whenever goods are moved in a vehicle or conveyance, and the value of the consignment exceeds Rs. 50,000, whether based on a single invoice or the total value of multiple invoices in a single trip.

Scenarios Requiring an eWay Bill

An eWay Bill must be generated in the following situations:

• In relation to a ‘supply’

• For reasons other than a ‘supply’ (e.g., return of goods)

• Due to an inward supply from an unregistered person

Understanding the Term ‘Supply’

For eWay Bill purposes, the term supply includes:

• Sale – Transfer of goods with payment

• Transfer – Such as branch transfers without sale

• Barter or Exchange – Goods exchanged without monetary payment

A supply can occur:

• With consideration (payment), in the course of business

• With consideration, not in the course of business

• Without consideration, such as free samples or donations

Mandatory eWay Bill Requirements – Even Below Rs. 50,000

In certain cases, an eWay Bill must be generated even if the value of goods is less than Rs. 50,000:

• Inter-state movement of goods by a principal to a job-worker, or by a registered job-worker

• Inter-state transport of handicraft goods by a dealer who is exempt from GST registration

Who Should Generate an eWay Bill?

The responsibility for generating an eWay Bill depends on the type of person involved in the transaction and the movement of goods. Below are the key scenarios and requirements:

1. Registered Persons

• A registered person under GST must generate an eWay Bill if the value of goods being transported exceeds Rs. 50,000, whether as a consignor or consignee.

• Even if the value is below Rs. 50,000, they may voluntarily generate an eWay Bill.

• If goods are handed over to a transporter, the registered person must fill Part A and provide transporter details in Part B of Form GST EWB-01.

2. Unregistered Persons

• Unregistered persons must also generate an eWay Bill when initiating a supply.

• When a supply is made by an unregistered person to a registered person, the recipient (registered person) is responsible for ensuring compliance, as if they were the supplier.

3. Transporters

• If neither the supplier nor the recipient has generated an eWay Bill, the transporter must generate it before the movement of goods.

• Transporters moving multiple consignments in a single vehicle can use Form GST EWB-02 to generate a consolidated eWay Bill.

• Unregistered transporters must enrol on the eWay Bill portal to obtain a Transporter ID, after which they can generate eWay Bills.

• Exemption:

• Transporters are not required to generate an eWay Bill if:

• Each consignment is individually valued at Rs. 50,000 or less, and

• The aggregate value of all consignments does not exceed Rs. 50,000.

Note:

• For distances up to 50 km within the same State/UT from the consignor to the transporter’s location, Part B (vehicle details) is not mandatory.

• In case of transport by air, rail, or ship, the consignor or recipient must fill Part A only.

Cases Where eWay Bill is Not Required

There are specific scenarios under the GST framework where the generation of an eWay Bill is not mandatory. These exemptions are designed to simplify compliance in low-risk or controlled logistics scenarios.

eWay Bill Not Required In the Following Cases:

Non-Motorised Transport:

When goods are transported using non-motor vehicles (e.g., handcarts, animal-drawn carts).

Movement under Customs Control:

• Goods are transported from a Customs port, airport, air cargo complex, or land customs station to an Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance.

• Goods moved under Customs supervision or seal.

• Movement of goods under a Customs Bond from ICD to a Customs port or between Customs stations.

International Transit:

Transit cargo to or from Nepal or Bhutan.

Defence-related Movements: Goods moved by or for a defence formation under the Ministry of Defence, acting as consignor or consignee.

• Transport of Empty Containers: No eWay Bill is needed when empty cargo containers are being transported.

• Movement for Weighment: Transport of goods between a place of business and a weighbridge, within 20 km, and accompanied by a Delivery Challan.

• Rail Transport by Government Authorities: When goods are transported by rail, and the consignor is the Central Government, State Government, or a local authority.

• Exempt Goods and Special Cases:

•   Goods exempted from eWay Bill requirements under specific State/UT GST Rules.

• Certain specified goods, including:

• Goods listed in the Annexure to Rule 138(14).

• Items considered “no supply” under Schedule III.

• Specific goods listed under Central Tax Rate notifications.

• Part B (vehicle details) of the eWay Bill is not required when:

• The distance between the consignor/consignee and transporter is less than 50 km, and

• The transport occurs within the same State or Union Territory.

Validity of e-Way Bill

The validity of an e-Way Bill is determined based on the type of conveyance and the distance to be travelled by the consignment. The countdown for validity begins from the date and time of e-Way Bill generation.

Validity Period Based on Distance and Cargo Type:

Note: Over-Dimensional Cargo refers to cargo that exceeds standard legal dimensions permitted for road transport.

Extension of Validity

• The validity of the e-Way Bill can be extended by the generator:Within 8 hours before the expiry of the e-Way Bill, orWithin 8 hours after the expiry of the e-Way Bill.

State-wise e-Way Bill Rules and Threshold Limits

Since the implementation of the eWay Bill system for inter-state movement of goods on 1st April 2018, the volume of eWay Bill generation has steadily increased. Over time, many States and Union Territories have also adopted the system for intra-state movement, though with varying rules and threshold limits.

Variation in Rules Across States and UTs

Each State/UT has the authority to prescribe specific monetary thresholds and exemptions for the generation of eWay Bills for intra-state movement. These differences mean that:

• Some States have higher threshold limits for requiring an eWay Bill.

• Others provide exemptions for certain goods or categories of transactions.

Example – Tamil Nadu

• The State of Tamil Nadu provides relief by exempting eWay Bill generation for intra-state movement of goods valued below ?1,00,000.

Stay Compliant with State-Specific Rules

It’s essential to understand the specific eWay Bill rules applicable in your State or Union Territory to avoid penalties and ensure smooth transportation of goods.

Talk to our experts at IndiaFilings to understand the latest state-wise rules, threshold limits, and exemptions. 

Time Limit to Generate an e-Way Bill

Previously, there was no specific time limit set for the generation of e-Way Bills based on the date of the supporting document (e.g., invoice or challan). While the validity of an e-Way Bill was governed by the distance of transport (covered in the next section), businesses could generate e-Way Bills on older dated documents without restriction.

However, starting 1st January 2025, a new rule will come into effect:

New Rule (Effective 1st January 2025):

• You can only generate an e-Way Bill on documents dated within the last 180 days from the current date.

• Documents dated more than 180 days prior will be ineligible for e-Way Bill generation.

Example: From 1st January 2025, any document dated before 5th July 2024 will not be accepted for generating an e-Way Bill.

Eway Bill Machansim

The e-way bill mechanism functions as follows:

• Registration on the Common Portal: To comply with e-way bill regulations, individuals must first register on the common GST portal.

• Generation of the E-Way Bill: After registration, they can generate an e-way bill on this portal.

• Allocation of a Unique E-Way Bill Number: Upon generating the e-way bill, a unique e-way bill number (EBN) is provided and made available to three key parties via the common portal: the supplier, the recipient, and the transporter.

• Filing Part A of Form GST EWB-01: Once Part A of the form GST EWB-01 is filled, there’s a feature on the portal that allows the other party (either the supplier, recipient, or transporter, depending on who generates the bill) to view the e-way bill generated against their GSTIN.

• Requirement for Acceptance or Rejection: The party at the other end must accept or reject the consignment details specified in the e-way bill.

• Deemed Acceptance: Suppose there is no communication of acceptance or rejection within 72 hours from the generation of the e-way bill or the time of delivery of the goods (whichever is earlier). In that case, the details are considered accepted by default.

Documents Required Generating an e-way Bill

To generate an e-way bill, the following documents are required, depending on the mode of transport:

For Transport by Road:

• Invoice/Bill of Supply/Challan related to the goods being transported.

• Transporter ID or the Vehicle Number of the vehicle used for transportation.

For Transport by Rail, Air, or Ship:

• Invoice, Challan relevant to the consignment of goods Bill of Supply,.

• Transporter ID

• Transport document number and date, which are specific to the mode of transport used (rail, air, or ship).

Procedure to Generate e-Way Bill on the e-Way Bill Portal

The e-Way Bill Portal offers a streamlined process for generating e-Way Bills (EWB) for the movement of goods. You can generate e-Way Bills either on the web or via SMS. This guide focuses on the step-by-step procedure to generate e-Way Bills through the web-based portal.

Prerequisites for e-Way Bill Generation

Before generating an e-Way Bill, ensure the following:

• Registration on the EWB portal.

• Invoice/Bill/Challan related to the consignment should be available.

• Transporter Information:

• For road transport, the Transporter ID or vehicle number.

• For rail, air, or ship, the Transporter ID, Transport document number, and document date.

Steps to Generate an e-Way Bill (EWB-01)

Step 1: Login to the e-Way Bill Portal

• Go to the e-Way Bill Portal.

• Enter your Username, Password, and Captcha code.

• Click on the Login button.

Step 2: Generate New e-Way Bill

• On the left-hand side dashboard, click on ‘Generate New’ under the ‘e-Waybill’ option.

Step 3: Fill in the Required Details

• Transaction Type:

• Select ‘Outward’ if you are the supplier.

• Select ‘Inward’ if you are the recipient.

• Sub-type: Select the applicable sub-type for your transaction. If Outward, choose the appropriate sub-type (e.g., Sale, Transfer, etc.). If Inward, select the relevant sub-type.

• Document Type: Choose the relevant document type from Invoice, Bill, Challan, Credit Note, Bill of Entry, or others.

• Document Number: Enter the Invoice/Bill number.

• Document Date: Select the document date from the calendar (system does not allow future dates).

• From/To:

• If you are the supplier, enter details of the recipient.

• If you are the recipient, enter the supplier’s details.

• If the supplier is unregistered, mention ‘URP’ in the GSTIN field.

• Item Details:

• Add consignment details such as product name, HSN code, quantity, unit, taxable value, CGST/SGST/IGST rates, and cess if applicable.

• Transporter Details:

• Choose the mode of transport (Road/Rail/Air/Ship) and the approximate distance in kilometers.

• Provide Transporter Name, Transporter ID, Transport Document Number, or Vehicle Number if the goods are being transported by road.

Step 4: Submit the Form

• After filling in all the required details, click on ‘Submit’.

• The system will validate the entered data. If any errors are found, they will be displayed. Correct them and resubmit.

• If everything is correct, the e-Way Bill in EWB-01 form will be generated with a 12-digit unique number.

Step 5: Print the e-Way Bill

• To print the generated e-Way Bill, follow these steps:

1. Click on ‘Print EWB’ under the ‘e-Waybill’ option.

2. Enter the 12-digit e-Way Bill number and click on ‘Go’.

3. Click on ‘Print’ or ‘Detailed Print’ to get the e-Way Bill in the required format.

Additional Features:

• Bulk Updates: Update transporter details for documents without having to re-enter the data.

• Inbuilt Validations: The system helps you avoid errors with real-time validations.

• Distance Estimation: The system includes a distance calculator to estimate travel distance for validity purposes. 

Introduction to IndiaFilings' LEDGERS Software

IndiaFilings offers a powerful and user-friendly solution through our LEDGERS software, designed to streamline GST e-Way Bill generation for businesses of all sizes. Whether you're generating a single e-Way Bill or managing bulk consignments, LEDGERS makes the process easy, accurate, and fully compliant with GST regulations.

With intuitive features, quick data entry, and seamless integration with your business operations, LEDGERS ensures you're always audit-ready and ahead on compliance.