E-way bill rules: when you need one, Part A and Part B, and validity

What is an e-way bill?

An e-way bill (electronic way bill) is a document generated on the government’s e-way bill portal for the movement of goods under GST. It records who is sending the goods, who is receiving them, what is being moved, its value and how it is travelling. Each e-way bill gets a unique 12-digit number (EBN) that the supplier, recipient and transporter can all see.

The rules are set out in Rule 138 of the Central Goods and Services Tax Rules, 2017, read with section 68 of the CGST Act. Tax officers can stop a vehicle and check the e-way bill against the goods and documents it is carrying.

When is an e-way bill required?

An e-way bill is required when goods are moved in relation to a supply, for reasons other than a supply (such as a return or a branch transfer), or because of an inward supply from an unregistered person, and the consignment value is more than ₹50,000.

Consignment value means the value declared on the invoice, bill of supply or delivery challan, including CGST, SGST or UTGST, IGST and cess. The value of exempt goods on the same invoice is left out.

• Inter-state movement: the ₹50,000 limit applies across India.
• Intra-state movement: each state and union territory notifies its own limit and exemptions, so check the rule for the state where the goods move.
• Regardless of value: an e-way bill is required for inter-state movement of goods by a principal to a job worker, and for inter-state movement of handicraft goods by a dealer exempted from registration.

Several movements are exempt, including goods carried by a non-motorised conveyance, goods moved from a port, airport, air cargo complex or land customs station to an inland container depot or container freight station for customs clearance, empty cargo containers, and goods listed in the annexure to Rule 138(14).

Who generates the e-way bill?

The registered person causing the movement, either the supplier or the recipient, generates the e-way bill before the goods leave. If neither does, the transporter must generate it on the basis of the invoice, bill of supply or delivery challan handed over. Transporters who are not registered under GST enrol on the portal and receive a transporter ID (TRANSIN) for this purpose.

When goods are handed to a transporter, the person who generated Part A can assign the e-way bill to that transporter, who then updates Part B.

What goes in Part A and Part B?

Part B can be left blank when goods travel up to 50 km within the same state or union territory from the consignor’s place of business to the transporter’s place of business for onward transport. It must be filled in before the onward journey.

When goods are moved from one vehicle to another, Part B is updated with the new vehicle number. A transporter carrying several consignments in one vehicle can generate a consolidated e-way bill that lists each individual e-way bill.

How long is an e-way bill valid?

Validity depends on the distance and is counted from the time the e-way bill is generated with Part B filled in. Each day ends at midnight of the day after the date of generation, so an e-way bill created at 10 am on 5 June with one day’s validity is valid until midnight between 6 and 7 June.

Worked example: a truck carrying normal cargo 650 km needs 1 day for the first 200 km plus 3 more days for the remaining 450 km (200 + 200 + 50), so the e-way bill is valid for 4 days.

If goods cannot reach the destination in time because of circumstances such as a breakdown or transhipment, the person in charge can extend validity on the portal close to expiry, currently from eight hours before to eight hours after it lapses. An extension needs the reason, the current location and the remaining distance.

Can an e-way bill be cancelled or rejected?

An e-way bill can be cancelled within 24 hours of generation, for example if the goods were not moved or the details were entered wrongly. It cannot be cancelled once an officer has verified it in transit. There is no edit option for Part A: a wrong entry is fixed by cancelling and generating a new bill.

The other party named on the e-way bill can reject it within 72 hours of its details being made available, or before delivery if that is earlier. If they do not act in that time, the bill is treated as accepted.

Generation can also be blocked for a GSTIN that has not filed its GST returns for two consecutive tax periods, under Rule 138E, so return filing affects dispatch as well as compliance.

Common e-way bill mistakes in warehouses

• Dispatching before Part B is filled in, so the e-way bill is not yet valid for movement.
• Changing the vehicle at a hub without updating Part B.
• Using an invoice value that leaves out GST, which can put a consignment under the limit by mistake.
• Letting validity lapse on long routes because the distance was entered as a round figure.
• Missing the 24-hour window to cancel a bill for a shipment that never left.

Goods moving without a valid e-way bill, or with details that do not match, can be detained along with the vehicle, and penalties under section 129 of the CGST Act can apply. Tying e-way bill status to the dispatch step is the simplest way to prevent these errors.