E-way bill rules: a practical guide

Every time goods leave your warehouse, the e-way bill decides whether they reach the customer smoothly or sit at a checkpost. The rules are not complicated, but they have enough edge cases to trip up a busy dispatch team.

This guide covers when an e-way bill is needed, what goes into it, how long it lasts, and a checklist your team can follow on every dispatch.

What an e-way bill is

An e-way bill is an electronic document, generated on the GST e-way bill portal (or from your e-invoice), that records the details of goods being moved and the vehicle moving them. Each one has a unique e-way bill number (EBN) that the driver must be able to show during transit.

When you need one

You need an e-way bill when you move goods with a consignment value above ₹50,000. The value is the invoice value including GST, excluding exempt goods on the same invoice.

The rule applies to more than sales. Movements that typically need an e-way bill include:

• sales and purchases,
• stock transfers between your own branches,
• goods sent for job work, and
• sales returns.

Some states set their own threshold for movements within the state, so check the rule for every state you dispatch within.

When you need one regardless of value

Certain movements need an e-way bill even below ₹50,000, including inter-state movement of goods to a job worker, and inter-state movement of handicraft goods by a dealer exempt from registration.

When you do not

There are exemptions, for example goods carried by non-motorised conveyance, certain goods listed in the rules, and goods moved under customs supervision. Check the current list before relying on an exemption.

Who generates it

• The supplier usually generates the e-way bill.
• The recipient can generate it if they arrange the transport.
• The transporter must generate it if neither party has, when the value crosses the threshold.

Whoever generates it, make sure the details match the invoice exactly.

Part A and Part B

An e-way bill has two parts:

• Part A holds the document details: invoice number and date, supplier and recipient GSTINs, places of dispatch and delivery, HSN codes, quantity and value.
• Part B holds the transport details: the vehicle number, or the transport document number for rail, air or ship.

An e-way bill is not valid for movement until Part B is filled in. If the vehicle changes mid-journey, for example at a transhipment point, update Part B with the new vehicle before it moves.

If you use e-invoicing, generate the e-way bill from the IRN. Part A comes across from the e-invoice, so you only add the transport details.

How long it is valid

Validity depends on distance:

• Normal cargo: 1 day for every 200 km or part of it.
• Over-dimensional cargo: 1 day for every 20 km or part of it.

A “day” ends at midnight of the day after generation. So an e-way bill generated at 3 pm on Monday for a 150 km trip is valid until midnight on Tuesday.

Extending validity

If goods cannot reach in time, for example because of a breakdown, you can extend the e-way bill in a window from 8 hours before to 8 hours after it expires. Plan for this rather than discovering an expired e-way bill at a checkpost.

Cancelling

If goods do not move, or the e-way bill has an error, cancel it within 24 hours of generation, provided it has not been verified in transit.

Penalties

Moving goods without a valid e-way bill can lead to a penalty of ₹10,000 or the tax sought to be evaded, whichever is higher, and the goods and vehicle can be detained until it is paid. That delay usually costs more than the penalty.

Dispatch checklist

Print this and keep it at the dispatch desk:

1. Is the consignment value above ₹50,000, or is it a movement that always needs one?
2. Do the invoice and e-way bill details match: GSTINs, HSN codes, quantity, value?
3. Is Part B filled in with the correct vehicle number?
4. Is the validity enough for the distance, with a margin for delays?
5. Does the driver have the e-way bill number, on paper or phone?
6. If the vehicle changes on the way, who updates Part B?
7. If the goods are not leaving today, has the e-way bill been cancelled within 24 hours?

How Indeza VCloud helps

Indeza VCloud generates e-invoices and e-way bills from Finance, using the same invoice and item data, so nothing is typed twice. Goods dispatches are recorded in Inventory, and vehicles and trips in the fleet section of HR & Workforce, so your dispatch team works from one system.

Book a demo to see an e-way bill generated from an invoice.

Key takeaways

• Most movements above ₹50,000 need an e-way bill, including branch transfers and job work.
• Part B (vehicle details) must be filled in before goods move.
• Validity is 1 day per 200 km for normal cargo; extend it in the 8-hour window if needed.
• Cancel unused e-way bills within 24 hours.
• Generating from the e-invoice avoids most errors.