E-Way Bill Under GST: Rules, Generation Process & Penalties in 2026
Every movement of goods worth more than Rs. 50,000 requires an e-way bill under GST. Whether you are a supplier, recipient, or transporter, understanding the rules around e-way bill generation, validity, and compliance is essential to avoid detention of goods and steep penalties. This guide covers everything you need to know about e-way bills in 2026.
What Is an E-Way Bill?
An e-way bill (Electronic Way Bill) is a digital document required for the movement of goods under the Goods and Services Tax regime in India. Introduced under Rule 138 of the CGST Rules, 2017, the e-way bill serves as evidence that goods being transported have the proper GST documentation and that the applicable tax has been paid or will be paid.
The e-way bill system was rolled out nationwide on April 1, 2018, for inter-state movement, and was subsequently extended to intra-state movement by all states. The system is managed through the ewaybillgst.gov.in portal, operated by the National Informatics Centre (NIC) under the authority of the GST Council.
Each e-way bill is assigned a unique E-Way Bill Number (EBN), which is a 12-digit number available to the supplier, recipient, and transporter. This number can be verified by tax officers during transit to ensure compliance. You can use the DoAide E-Way Bill Generator to create compliant e-way bills quickly.
When Is an E-Way Bill Required?
An e-way bill must be generated when goods with a consignment value exceeding Rs. 50,000 are moved in relation to a supply, for reasons other than supply (such as a job work return), or as an inward supply from an unregistered person. The consignment value includes the value of goods, CGST, SGST/UTGST, IGST, and cess charged, but excludes the value of exempt goods being transported along with taxable goods.
Key Scenarios Requiring an E-Way Bill
- Inter-state movement: Any movement of goods between two states, regardless of the consignment value in some cases (e.g., handicraft goods by exempted suppliers must generate e-way bills even below Rs. 50,000).
- Intra-state movement: Movement within the same state where consignment value exceeds Rs. 50,000 (some states have lower thresholds).
- Supply of goods: Sales, stock transfers, branch transfers, and goods sent on approval basis.
- Non-supply movements: Goods sent for job work, exhibitions, or returned after repair.
- Inward supply from unregistered persons: When an unregistered supplier sends goods worth over Rs. 50,000, the recipient or transporter must generate the e-way bill.
Even if individual invoices are below Rs. 50,000, if you are transporting multiple consignments in a single conveyance and the aggregate value exceeds Rs. 50,000, each consignment still needs its own e-way bill. Use the DoAide GST Bot to check whether your specific shipment requires an e-way bill.
Who Can Generate an E-Way Bill?
The responsibility for generating an e-way bill depends on the nature of the transaction and the registration status of the parties involved.
- Registered supplier: When the supplier arranges transport, they must generate the e-way bill before the goods are dispatched.
- Registered recipient: When the recipient arranges transport (ex-works delivery), the recipient generates the e-way bill.
- Registered transporter: If neither the supplier nor recipient generates the bill, the transporter can generate it. This is common when goods are handed over to a logistics company.
- Unregistered supplier: When an unregistered person supplies goods to a registered person, the recipient must generate the e-way bill. Alternatively, the unregistered person can generate it by enrolling on the e-way bill portal using their PAN or Aadhaar.
How to Generate an E-Way Bill on ewaybillgst.gov.in
The e-way bill is generated through the official portal at ewaybillgst.gov.in. The form has two parts — Part A and Part B — and both must be completed for the bill to be valid for transporting goods.
Part A: Supply and Goods Details
Part A captures the core transaction information. It includes:
- GSTIN of the supplier and recipient (or URP — Unregistered Person — if applicable)
- Place of dispatch and delivery with PIN codes
- Document type: Invoice, bill of supply, delivery challan, or bill of entry
- Document number and date
- Value of goods and HSN code (use the DoAide HSN Code Finder to look up the correct code)
- Reason for transport: Supply, export, job work, SKD/CKD, recipient not known, line sales, sales return, exhibition, for own use, or others
Part B: Transport Details
Part B captures the vehicle and transporter information. It includes:
- Vehicle number for road transport
- Transport document number (railway receipt, airway bill, or bill of lading) for rail, air, or ship transport
- Transporter ID (GSTIN or Enrolment ID of the transporter)
- Transporter name and document number
Part A can be filled in advance, but Part B must be completed before the goods start moving. An e-way bill with only Part A filled is not valid for transportation. However, if goods are transported within a 50 km radius from the place of business of the consigner to the transporter for further movement, Part B is not mandatory for that initial leg.
Step-by-Step Generation Process
- Log in to ewaybillgst.gov.in using your GSTIN credentials. If you are an unregistered person, enrol using your PAN or Aadhaar to get a transporter ID.
- Navigate to Generate New. Click on "E-Waybill" in the left menu and then select "Generate New" to open the e-way bill form.
- Fill in Part A. Select the transaction type (outward/inward), sub-type, and enter document details, supplier/recipient GSTIN, item details with HSN codes, and the GST amounts.
- Fill in Part B. Enter vehicle number for road transport, or the transport document number for rail/air/ship. Add transporter details if applicable.
- Submit and note the EBN. On successful submission, you receive a 12-digit E-Way Bill Number (EBN). Share this with the transporter and keep it accessible for verification during transit.
E-Way Bill Validity Based on Distance
The validity of an e-way bill is directly tied to the distance the goods must travel. The validity period begins from the date and time of generation of Part B (or the date and time of generation if Part A and Part B are filled simultaneously).
| Cargo Type | Distance | Validity Period |
|---|---|---|
| Regular Vehicle | Up to 200 km | 1 day |
| Regular Vehicle | 200 km to 400 km | 2 days |
| Regular Vehicle | 400 km to 600 km | 3 days |
| Regular Vehicle | 600 km to 800 km | 4 days |
| Regular Vehicle | Every additional 200 km | +1 day |
| Over-Dimensional Cargo | Up to 20 km | 1 day |
| Over-Dimensional Cargo | Every additional 20 km | +1 day |
Extension of E-Way Bill Validity
If the goods cannot be transported within the original validity period due to unforeseen circumstances such as natural calamities, vehicle breakdown, law-and-order situations, or transshipment delays, the validity can be extended. The extension must be applied for on the e-way bill portal before the expiry of the original validity (or within 8 hours after expiry). You must provide the reason for extension and updated transport details.
If the e-way bill expires and you have not applied for extension, you must generate a fresh e-way bill. Transporting goods on an expired e-way bill attracts the same penalties as transporting goods without one.
E-Way Bill for Intra-State vs. Inter-State Movement
While the basic framework is the same, there are important differences between intra-state and inter-state e-way bill requirements.
For inter-state movement, the e-way bill is mandatory for all consignments exceeding Rs. 50,000. This is governed by CGST rules and applies uniformly across the country. The applicable tax is IGST, which must be reflected in the e-way bill and the corresponding GST invoice.
For intra-state movement, individual states have the authority to modify the threshold limit. Some states require e-way bills for consignments valued above Rs. 50,000, while a few states have reduced this threshold for certain categories of goods. States also have the power to exempt specific categories of goods from the intra-state e-way bill requirement. The applicable taxes — CGST and SGST — should be correctly calculated using a GST calculator.
Exemptions from E-Way Bill Requirement
Not all goods movements require an e-way bill. The following categories are exempt:
- Goods exempt under CGST/SGST Acts: Goods listed in the exemption notification do not require an e-way bill regardless of value.
- Non-motorised conveyance: Goods transported by hand carts, bullock carts, or other non-motorised vehicles.
- Customs-bonded movement: Goods transported from customs port, airport, or land customs station to an inland container depot (ICD) or container freight station (CFS).
- Empty cargo containers: Movement of empty containers does not need an e-way bill.
- Government transit: Goods transported by the Defence Ministry, goods under customs bond or customs supervision.
- Specific exempt goods: Fresh fruits and vegetables, milk, eggs, curd, bread, unprocessed tea leaves, raw silk, newspapers, judicial and non-judicial stamp papers, and similar items listed under Rule 138(14).
- Distance under 50 km (specific scenarios): When goods are moved within a 50 km radius from the consigner's place of business to a transporter's godown, Part B is not mandatory. Some states also exempt intra-city movements under 50 km from the e-way bill requirement entirely.
- Consignment value below Rs. 50,000: For most categories, if the consignment value does not exceed Rs. 50,000, no e-way bill is needed (exceptions apply for certain goods and inter-state movement of handicraft goods by exempted producers).
Several states have their own modifications to e-way bill rules. For example, some states require e-way bills for intra-state movement of gold, precious stones, and certain high-value items regardless of value thresholds. Always check your state's GST notification or ask the DoAide GST Bot for state-specific rules.
Cancellation of an E-Way Bill
An e-way bill can be cancelled within 24 hours of generation. Cancellation is typically needed when goods are not transported after the bill was generated, or when the bill was generated with incorrect details (wrong vehicle number, wrong recipient GSTIN, etc.).
To cancel, log in to the e-way bill portal, go to "Cancel" under the E-Waybill menu, enter the EBN, provide the reason for cancellation, and submit. However, an e-way bill cannot be cancelled if it has already been verified by a tax officer during transit. In such cases, you may need to generate a new e-way bill with corrected details and reference the original bill.
If the recipient rejects the consignment (and consequently rejects the e-way bill on the portal within 72 hours of generation), the bill is treated as invalid. Always reconcile your e-way bill records with your GST return filing to avoid discrepancies.
Penalties for Non-Compliance with E-Way Bill Rules
The penalties for e-way bill violations under GST are severe and can significantly impact your business operations. Under Section 129 of the CGST Act, a tax officer can intercept, detain, or seize goods and the conveyance if the e-way bill is missing, expired, or contains incorrect information.
| Violation | Penalty | Additional Consequence |
|---|---|---|
| Goods without e-way bill | Rs. 10,000 or tax evaded, whichever is higher | Goods and vehicle detained/seized |
| Expired e-way bill | Same as above — treated as no valid bill | Goods and vehicle detained/seized |
| Release of goods (owner) | Tax amount + penalty equal to 200% of tax | Must pay before goods are released |
| Release of goods (transporter) | Rs. 25,000 or 50% of goods value, whichever is less | Must furnish security for penalty amount |
| Failure to furnish info under Section 130 | Confiscation of goods and conveyance | Fine in lieu of confiscation; prosecution possible |
When goods are detained, the tax officer issues Form GST MOV-06 (detention order) and Form GST MOV-07 (notice for tax and penalty). The owner or transporter must pay the tax and penalty within 14 days. If payment is not made, the goods may be auctioned or confiscated under Section 130. Using a Reverse Charge Mechanism calculator can help ensure your tax computations are accurate before transport.
Common Mistakes to Avoid with E-Way Bills
Many businesses face penalties not due to intentional evasion but because of avoidable errors. Here are the most common mistakes and how to prevent them.
- Incorrect vehicle number in Part B. This is the single most common error. Double-check the vehicle registration number before submitting. If the vehicle changes mid-transit, update Part B immediately on the portal.
- Wrong HSN code or goods description. An incorrect HSN code can lead to disputes about the applicable tax rate. Use the HSN Code Finder to verify the correct classification before generating the bill.
- Not generating a bill for stock transfers. Branch-to-branch transfers and stock movements to warehouses also require e-way bills if the value exceeds Rs. 50,000, even though there is no sale involved.
- Forgetting to extend validity before expiry. If your goods are delayed in transit, apply for extension before the bill expires. After expiry, you cannot extend — only generate a new bill.
- Mismatching invoice and e-way bill details. The invoice number, date, value, and GSTIN on the e-way bill must exactly match the physical or digital invoice. Tax officers routinely cross-verify these details during inspection.
- Not updating vehicle details for multi-modal transport. If goods move by road to a railhead and then by rail, the e-way bill must be updated with transport document details for each leg of the journey.
- Ignoring state-specific requirements. Some states have additional e-way bill requirements or lower thresholds. Always check the rules applicable to both the origin and destination states. Ask the GST Bot for state-specific guidance.
Related GST Resources
Understanding e-way bills is one part of overall GST compliance. Here are related guides that can help you stay on top of your obligations:
- GST Return Filing Deadlines 2026-27 — Complete month-wise calendar for GSTR-1, GSTR-3B, and annual returns.
- GST Registration Process 2026 — Step-by-step guide to getting your GST registration.
- GST Audit Checklist for Small Businesses — Prepare for GST audits with this comprehensive checklist.
- GST Composition Scheme Guide 2026 — Understand eligibility, benefits, and filing requirements for composition dealers.
Frequently Asked Questions
An e-way bill is mandatory when the consignment value exceeds Rs. 50,000. This threshold applies to both inter-state and intra-state movement of goods. However, some states have set lower thresholds for intra-state movements, and certain categories like handicraft goods by exempted suppliers require an e-way bill regardless of value for inter-state transport.
E-way bill validity depends on the distance of transportation. For regular vehicles, the bill is valid for 1 day for every 200 km or part thereof. For over-dimensional cargo, it is valid for 1 day for every 20 km or part thereof. The validity starts from the time of generation of Part B and can be extended before expiry (or within 8 hours after expiry) on the e-way bill portal.
Yes, an e-way bill can be cancelled within 24 hours of generation on the e-way bill portal. However, it cannot be cancelled if it has already been verified by a tax officer during transit. Once cancelled, the EBN becomes invalid and a new e-way bill must be generated if the goods still need to be transported.
Under Section 129 of the CGST Act, if goods are transported without a valid e-way bill, the goods and vehicle can be detained or seized. The penalty is Rs. 10,000 or the tax sought to be evaded, whichever is higher. To get the goods released, the owner must pay the applicable tax and a penalty equal to 200% of the tax amount. Transporters may need to pay Rs. 25,000 or 50% of the value of goods, whichever is less.
Several categories are exempt: goods exempted under the CGST/SGST Acts, goods transported by non-motorised conveyance, goods transported from port/airport to an inland container depot, empty cargo containers, Defence Ministry goods, and specific items like fresh fruits, vegetables, milk, eggs, curd, bread, unprocessed tea leaves, raw silk, and newspapers. Goods with a consignment value below Rs. 50,000 are generally exempt, subject to state-specific rules.
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